On Extension of the Bush Tax Cuts
On June 19, Senate Finance Committee Chairman Max Baucus, D-Mont., suggested that a temporary extension of the Bush-era tax cuts is one option that he would consider to avoid falling off a fiscal cliff at the end of 2012 when the cuts are set to expire. Senator Baucus suggested that an extension is possible if it is done in conjunction with tax reform.
Baucus noted that the nonpartisan Congressional Budget Office recently warned that allowing the tax breaks to expire could lead the economy back into recession.
President Obama is demanding that the Bush tax cuts be allowed to expire for those taxpayers earning over $1-million per year.
On June 20, Democrats on the House Ways and Means Committee introduced legislation that would extend 100-percent bonus depreciation through 2012. The Invest in America Now Bill of 2012 was introduced to encourage House GOP lawmakers to pass legislation to boost the economy before Congress leaves for its August recess. The Democrats’ bill would pay for bonus depreciation by ending tax incentives for oil and gas companies.
House Ways and Means Republicans have said they plan to work on a bill during the week of June 25 that would extend a group of expired or expiring tax provisions and also set in place the framework for comprehensive tax reform.
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