Thursday, December 2, 2010
NEXT UP: THE HOUSE CONSIDERS THE MIDDLE CLASS TAX CUTS BILL
H. Res. 1745 is the Rule providing for consideration of H. R. 4853, the Airport and Airway Extension Act of 2010, Part III. That's correct the Middle Class Tax Cut Bill is going back to the Senate as part of the Airport and Airway Extension Act. Suddenly the 111th Congress' lame duck session looks a lot less lame.
A brief history on H.R. 4853 shows us that the bill was introduced in the House on March 16th by Minnesota's Democratic Representative James Oberstar and passed by voice vote on March 17th. The bill made its way to the Senate where it was passed with an Amendment by Unanimous Consent on September 23rd.
North Dakota's Democratic Senator Byron Dorgan proposed Senate Amendment 4656 to H. R. 4853 for West Virginia's Democratic Senator John D. Rockefeller. The Amendment was in the nature of a substitute. The nature of H. R. 4853 was not changed by the Rockefeller Amendment.
The House Amendment provides for a Two year extension of alternative minimum tax relief; Permanent extension of marginal individual income tax rate reduction for middle-class taxpayers; Permanent reduced capital gains and dividend tax relief for middle-class taxpayers; Permanent extension of EGTRRA and ARRA improvements to child tax credit; Permanent extension of PEP and Pease relief for middle-class taxpayers; Permanent marriage penalty relief for middle-class taxpayers; Permanent earned income tax credit simplification and increase; Permanent extension of education tax incentives; Permanent extension of tax benefits for families and children; and Permanent extension of enhanced small business expensing.
Under this Amendment the threshold for the tax break will be the first $250,000 of earned income. Everyone who earns income will get a permanent tax cut on the first $250,000 of their income. If you report earned income more than $250,000 then you pay the increased tax rate only on the amount in excess of $250,000.
Most importantly this Amendment does not extend the Bush era FAT CAT TAX BOONDOGGLE.
The text of the full Amendment is available online at the Library of Congress' website, THOMAS: http://rules.house.gov/SpecialRules_details.aspx?NewsID=4782. Follow the link at the bottom of the page.