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Tuesday, May 9, 2006

Republicans Reach Deal on Tax Cuts

Republicans in Congress reached agreement this afternoon on a $70 billion tax cut measure to extend the 15% tax rate on dividends and capital gains and to provide AMT relief.  For details, see:

http://taxprof.typepad.com/taxprof_blog/2006/05/republicans_rea.html

Congressional News | Permalink

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» TAX BILL! from Roth & Company, P.C.
The negotiators have spoken. I will have an analysis of the new tax bill up later this morning. In the... [Read More]

Tracked on May 10, 2006 9:17:33 AM

» TAX BILL! from Roth & Company, P.C.
The negotiators have spoken. I will have an analysis of the new tax bill up later this morning. (UPDATE: here... [Read More]

Tracked on May 10, 2006 11:41:35 AM

» One Tax Bill Likely to Pass from Taxable Talk
Republican negotiators in Congress sent tax legislation out of conference committee. The highlights of this generally lackluster legislation: - AMT Relief extended, with a new higher exclusion of $62,550 for 2006; - 15% capit... [Read More]

Tracked on May 10, 2006 11:24:20 PM

Comments

After several years of trying, Senator Grassley has finally gotten his Kiddie tax increase as part of this year's package.

The change from age 14 to 18 is a raid on the college savings of families who set up UGMA accounts many years ago. As if that weren't enough, the change is retroactive to January 1 of this year.

Why raid college savings? To quote Senator Moynihan on another retroactive tax increase in 1993: "Because we needed the money." As if families didn't need the money they set aside for college.

The next time someone in Congress asks why some taxpayers feel like it's OK to cheat Uncle Sam, tell him or her to ask Senator Grassley and the other members of the Conference Committee. Grassley knows the true rules -- anything goes.

Posted by: A Taxpayer | May 9, 2006 9:47:00 PM

So the Repubs have decided to do five years more of grace for us? And we are supposed to feel grateful? I think not! I do think conservatives may well stay away from the polls this year, though the results we will hate.
Pat

Posted by: Pat | May 9, 2006 11:56:12 PM

That's not the only retroactive tax increase by Republican Senator Grassley.

He also got the Foreign Earned Income Exclusion (Section 911) reworked to create a massive tax hike on anyone who has both foreign employment earnings and income in the United States.

I thought these guys railed against Clinton's 1993 retroactive tax increase in OBRA 1993? What hypocrites.

Especially from a Senator of a state that gets those massive federal farm subsidies . . .

Posted by: Hoofin | Jun 15, 2006 1:22:42 PM