Lawmakers Seek To Extend Expiring Tax Cuts

by Mike Godfrey, Tax-News.com, Washington

14 July 2004

Lawmakers in the House of Representatives are currently working on a new strategy that will extend a package of tax cuts passed in 2001 that is due to start expiring next year, including the 10% lower tax bracket and family tax breaks.

One option being explored would temporarily extend these tax cuts by attaching them to a bill that would extend the $1,000 tax credit for low income families.

However, progress on this matter remains frustratingly slow for the Bush administration, which is keen to see the tax cuts made permanent, or at the very least extended.

The House passed permanent extensions of several tax cuts in May, including the child tax credit, tax relief for married couples, the 10% tax bracket and reductions in the Alternative Minimum Tax for individuals.

However, moderate Republicans and Democrats in the Senate are continuing to baulk at the $570 billion ten-year price tag attached to these measures, given the sensitivity of the budget deficit issue.

The new strategy would seek to extend these tax cuts by two years and could move through the House by the end of the month, Democrat aides revealed to Dow Jones Newswires.

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