Washington (Dec. 13, 2010) – President Obama’s deal to extend Bush-era tax cuts for two more years begins to move through Congress today. A procedural vote in the Senate today will clear the way for the Senate to vote on passage of the tax-cut package later this week, followed by a vote in the House of Representatives. The votes on the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 will take place against a backdrop of an expected national debate of broad tax reform during the next two years.
Edward Karl, vice president of taxation for the American Institute of Certified Public Accountants, and other members of the AICPA tax staff are available to explain what the tax-cut package means for taxpayers.
On the line for individuals are reductions in income tax rates, capital gains and qualified dividends, relief from the Alternative Minimum Tax, a variety of credits for families and students, lower employee payroll taxes, reduced estate taxes and deductions for state and local sales taxes.
For business, the bill would permit 100 percent bonus depreciation for new equipment placed in service through 2011, reinstate the research and development credit, extend deductions for books and computer equipment donated to schools, and continue exclusion of small business capital gains.