Wednesday, December 12, 2007

Fate of Expiring Tax Provisions in 2007 Tied to Revised AMT Package

With several temporary tax provisions scheduled to expire by December 31, 2007, prospects for passage in 2007 are dimming; however, a small window of opportunity remains, according to Senate Finance Committee Chairman Max Baucus, D-Mont. As the Senate awaits a revised alternative minimum tax (AMT) bill from the House, Baucus expressed hope that his Democratic counterpart in that chamber, House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., includes an extenders package to accompany a one-year patch for the AMT. Baucus said that would be the only way to renew several expiring tax provisions in 2007; otherwise they will be "pushed off until next year."

The prospects for passage in 2007 are not good, as President Bush has vowed to veto any legislation that includes what he terms tax increases, and House Democrats appear, at least for the moment, determined to pay for all tax cuts through the use of revenue offsets. So far, Senate Republicans have remained steadfast in their allegiance to the White House directive to oppose the use of offsets, but at this time of year, as lawmakers rush to move legislation before heading home for the holidays, anything is possible. Baucus planned to meet with Rangel later in the day on December 12 to discuss the AMT package and the inclusion of extenders. "It's all fluid," he told CCH. READ ON->

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