Winehole23
12-15-2010, 03:00 PM
Senate Approves Tax-Cut Extension
By COREY BOLES (http://online.wsj.com/search/term.html?KEYWORDS=COREY+BOLES&bylinesearch=true) And MARTIN VAUGHAN (http://online.wsj.com/search/term.html?KEYWORDS=MARTIN+VAUGHAN&bylinesearch=true)
WASHINGTON—Senate lawmakers on Wednesday approved an $858 billion bill extending the Bush-era tax cuts for two years, turning the spotlight on House lawmakers to pass the sweeping legislation.
The Senate voted 81-19 to approve the tax measure.
WSJ/NBC News Poll
The tax compromise maintains solid support across the ideological spectrum -- 59% approve, 36% disapprove -- a new Wall Street Journal/NBC News poll finds. (http://blogs.wsj.com/washwire/2010/12/15/wsjnbc-poll-shows-solid-support-for-tax-package/)
(http://blogs.wsj.com/washwire/2010/12/15/wsjnbc-poll-shows-solid-support-for-tax-package/)
The action now moves to the House, where the Democratic leadership is trying to craft a way to allow liberal members of the party to voice their opposition to aspects of the deal—particularly its estate-tax provision—and still ensure it is ultimately approved.
Fourteen Democratic lawmakers and five Republicans voted against the bill.
Many House Democrats have been opposed to the Obama administration's agreement to renew the estate tax at a lower rate and with a higher exclusion than was planned. The tax expired at the end of 2009 and, according to the legislation approved by the Senate, would from January impose a 35% tax on estates worth more than $5 million for individuals and $10 million on couples. Under current law, the inheritance tax would be reinstated from 2011 at a rate of 55% on estates worth more than $1 million, levels supported by many Democrats.
It is unclear how the Democratic leadership will structure votes on the House floor, which are likely to occur on Thursday, according to aides.
The legislation would extend Bush-era tax cuts for an additional two years for people of all income levels. It would cut payroll taxes for workers in 2011 and extend a range of expired business-tax breaks like the research-and-development credit.
In a further attempt to kick-start economic growth, the legislation reduces federal payroll taxes for most American workers for one year by two percentage points to 4.2% from 6.2%.
The bill extends jobless benefits for 13 months as well as tax benefits Obama championed for low-income families that were part of 2009 economic-stimulus legislation.
The unemployment-benefit extension wouldn't affect people who have already exhausted the maximum combined state and federal assistance of 99 weeks. It would make sure that long-term unemployed people in states hardest hit by the economic downturn would be able to receive as many as 99 weeks, rather than the 26 weeks normally available.
The bill also allows businesses to write off 100% of equipment purchases made after Sept. 8, 2010, but before Jan. 1, 2012. It shields most taxpayers from the alternative minimum tax in 2010 and 2011. And it renews a host of expired tax breaks for businesses, including a tax break on banks' overseas income, quicker depreciation for restaurant improvements and the 45-cent tax credit for ethanol blenders.
Before the Senate vote on final passage of the legislation, lawmakers rejected an attempt by conservative Republicans to extend all the tax cuts and the estate tax permanently.
They also voted down a move to divert other federal-government funds to pay for the $56.5 billion cost of extending jobless benefits.
And they defeated an attempt by liberal Democrats to allow tax rates for wealthier Americans to expire and use the money to fund other federal programs.
http://online.wsj.com/article/SB10001424052748704828104576021680671896722.html?m od=googlenews_wsj
By COREY BOLES (http://online.wsj.com/search/term.html?KEYWORDS=COREY+BOLES&bylinesearch=true) And MARTIN VAUGHAN (http://online.wsj.com/search/term.html?KEYWORDS=MARTIN+VAUGHAN&bylinesearch=true)
WASHINGTON—Senate lawmakers on Wednesday approved an $858 billion bill extending the Bush-era tax cuts for two years, turning the spotlight on House lawmakers to pass the sweeping legislation.
The Senate voted 81-19 to approve the tax measure.
WSJ/NBC News Poll
The tax compromise maintains solid support across the ideological spectrum -- 59% approve, 36% disapprove -- a new Wall Street Journal/NBC News poll finds. (http://blogs.wsj.com/washwire/2010/12/15/wsjnbc-poll-shows-solid-support-for-tax-package/)
(http://blogs.wsj.com/washwire/2010/12/15/wsjnbc-poll-shows-solid-support-for-tax-package/)
The action now moves to the House, where the Democratic leadership is trying to craft a way to allow liberal members of the party to voice their opposition to aspects of the deal—particularly its estate-tax provision—and still ensure it is ultimately approved.
Fourteen Democratic lawmakers and five Republicans voted against the bill.
Many House Democrats have been opposed to the Obama administration's agreement to renew the estate tax at a lower rate and with a higher exclusion than was planned. The tax expired at the end of 2009 and, according to the legislation approved by the Senate, would from January impose a 35% tax on estates worth more than $5 million for individuals and $10 million on couples. Under current law, the inheritance tax would be reinstated from 2011 at a rate of 55% on estates worth more than $1 million, levels supported by many Democrats.
It is unclear how the Democratic leadership will structure votes on the House floor, which are likely to occur on Thursday, according to aides.
The legislation would extend Bush-era tax cuts for an additional two years for people of all income levels. It would cut payroll taxes for workers in 2011 and extend a range of expired business-tax breaks like the research-and-development credit.
In a further attempt to kick-start economic growth, the legislation reduces federal payroll taxes for most American workers for one year by two percentage points to 4.2% from 6.2%.
The bill extends jobless benefits for 13 months as well as tax benefits Obama championed for low-income families that were part of 2009 economic-stimulus legislation.
The unemployment-benefit extension wouldn't affect people who have already exhausted the maximum combined state and federal assistance of 99 weeks. It would make sure that long-term unemployed people in states hardest hit by the economic downturn would be able to receive as many as 99 weeks, rather than the 26 weeks normally available.
The bill also allows businesses to write off 100% of equipment purchases made after Sept. 8, 2010, but before Jan. 1, 2012. It shields most taxpayers from the alternative minimum tax in 2010 and 2011. And it renews a host of expired tax breaks for businesses, including a tax break on banks' overseas income, quicker depreciation for restaurant improvements and the 45-cent tax credit for ethanol blenders.
Before the Senate vote on final passage of the legislation, lawmakers rejected an attempt by conservative Republicans to extend all the tax cuts and the estate tax permanently.
They also voted down a move to divert other federal-government funds to pay for the $56.5 billion cost of extending jobless benefits.
And they defeated an attempt by liberal Democrats to allow tax rates for wealthier Americans to expire and use the money to fund other federal programs.
http://online.wsj.com/article/SB10001424052748704828104576021680671896722.html?m od=googlenews_wsj