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SCALED-BACK GRASSLEY BILL PASSES FINANCE COMMITTEE
November 16, 2005
Senator Grassley's tax reconciliation bill cleared the Senate Finance Committee last night, but without an extension of the 15% top rate for dividends and capital gains. These breaks, scheduled to expire after 2008, were stripped from the bill when Republican Olympia Snowe sided with the Democrats on the committee in opposing the bill.
The bill increases the alternative minimum tax exemption amount and then adjusts it for inflation - a long overdue measure to keep inflation from pushing more taxpayers into AMT. It also extends some tax breaks that were slated to expire after this year, including the deduction for teacher expenses, the sales tax deduction, and the research credit.
The bill still has to clear the Senate and then be reconciled with a House bill. The House Ways and Means Committee last night approved its version of the bill, which extends the dividend and capital gain breaks but has no AMT exemption extension.
Links:
Tax Analysts free coverage, Senate Bill
Tax Analysts Free Coverage, Ways and Means bill
TaxProf Blog coverage roundup
The bill still has a way to go before passage.
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