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Tax Extenders Pass Final Hurdle in Senate

Posted by Kevin Dougherty in Uncategorized | 0 comments

(Bloomberg) Congress passed a $1.1 trillion spending measure that extends a number of important tax provisions, and makes several of them permanent.

The Senate passed the Tax  bill 65-33 on Friday, shortly after a 316-113 House vote. The legislation, which will finance the government through September 2016, goes to President Barack Obama, who plans to sign it.

The two measures, combined in H.R. 2029, include about $680 billion in revived tax breaks over the next 10 years. A number of them would be made permanent, including those for business research and development, small business expenses, individual deductions for state and local sales taxes, and financing rules for multinational corporations.

The tax provisions

The tax-extension measure passed by the House Thursday would also make permanent an enhanced Child Tax Credit and the Earned Income Tax Credit, both Democratic priorities, as well as tax breaks for charitable giving and schoolteachers’ expenses.

The two pieces of legislation would suspend three taxes intended to fund the Affordable Care Act — a so-called Cadillac tax on high-cost health insurance plans would be delayed from 2018 to 2020; a 2.3 percent tax on medical devices would be paused in 2016 and 2017; and a fee on health insurers would be paused for 2016.

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