Congress Approves Bush Tax Cut Package

by Mike Godfrey, Tax-News.com, Washington

27 September 2004

Both the House of Representatives and the Senate last week approved a package of personal and corporate tax breaks, marking the fourth significant tax break legislation under the Presidency of George W. Bush in as many years.

The bill, which extends the current 10% tax bracket for six years, keeps the child tax credit at $1,000 for five years, and provides relief from the marriage penalty for four years, passed the House on a 339-65 vote and cleared the Senate by a 92-3 vote.

Despite opposition from many Republicans to the $146 billion cost of the tax cuts, no House Republicans voted against the measure, and only three Republican Senators objected.

In addition to the family tax breaks, the bill will extend 23 business-related provisions, including a one year extension to the R&D tax credit.

These extra breaks came in at a cost of $13 billion, and have not been offset with the closure of various corporate tax loopholes, to the disappointment of most Democrats and some Republicans.

The passing of the tax package was applauded by the President, who noted in a statement: "This legislation will give families and small businesses added certainty and keep us on the path to greater prosperity and it brings us one step closer to making the tax relief permanent."

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