Congress Likely To Extend Some Tax Cuts This Year

by Mike Godfrey, Tax-News.com, Washington

23 January 2004

Although it seems likely that Congress will not begin to debate whether to make President Bush’s more divisive tax cuts permanent until after the election, legislators could well extend certain tax breaks that are due to expire at the year’s end.

Included amongst these is the 10% income tax bracket that has lowered tax for almost every American in employment. The measure is due to expire on January 1st next year, though it is thought likely by many commentators that lawmakers will seek to extend legislation in the months prior to the election.

Other measures due to expire at the same time are changes that reduces the marriage penalty, and the universal $1,000 child tax credit (increased last year from $600) which is set to fall to $700 next year.

Whilst many of the recently legislated tax cuts have expiration dates of 2011 to 2013, House Ways and Means Committee Chairman Bill Thomas (R – Calif) believes that extending the measures set to expire in 2005 will help to eliminate a degree of uncertainty in Congress in the coming months.

"I believe I'm going to try to move several of them that are more important in terms of expiration and continuity even this year, which means I hope we're successful," commented Thomas.

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