July 2010

Senate Deliberates Fate of Expiring Bush Tax Cuts

From WebCPA.com.

The Senate Finance Committee held a hearing Wednesday to discuss the soon-to-expire 2001 tax cuts and how to extend any of them without increasing the budget deficit or hurting economic growth.

Those included lowering income tax rates for all taxpayers, doubling the child tax credit from $500 to $1,000 a child and making the credit partially refundable, increasing the amount families could claim for the dependent care credit, eliminating the marriage penalty, and making it easier to deduct student loan interest.

“We made a lot of tax law changes in 2001 that have very broad support, throughout the Congress,” said Senate Finance Committee Chairman Max Baucus, D-Mont., in his opening statement. “But now we face a problem. These tax cuts are not permanent. They expire at the end of the year. The big questions before us now are whether we should make some of these tax cuts permanent, and if so, which ones?”

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