APFN"THE TAX BILL FIGHT" - H.R. 2Thu May 8 21:21:41 2003208.152.73.132"THE TAX BILL FIGHT"If you've been watch this fight on C-SPAN you have beenrunning the to bathroom every five minutes!Jobs and Growth Tax Act of 2003 Legislative Update http://www.house.gov/budget/ Bill: Jobs and Growth Tax Act of 2003. green Committee: Ways and Means http://www.house.gov/budget/budgweek30011.htm Summary: This bill has been reported pursuant to reconciliation directives in the Conference Report (Report 108-71) on the budget resolution for fiscal year 2004 (H.Con.Res. 95). The Conference Report directed the Committee on Ways and Means to report an economic growth and job-creation package reducing revenue by $535 billion over 11 years, and increasing spending associated with tax relief measures by $15 billion over the same period. H.R. 2 bill makes a variety of changes to the tax code. It would tax dividends and capital gains at 15 percent for upper income earners and 5 percent for lower income workers. It would expand the child tax credit to $1,000 for 2003 through 2005, but revert to current-law phase-in for 2006. It would accelerate the expansion of the 15-percent individual income tax rate bracket and the increase in the standard deduction for married taxpayers filing joint returns, but revert to the current-law phase-in for 2006. It would accelerate the expansion of the 10-percent bracket, but revert to the current-law phase-in for 2006. It would accelerate the 2006 rate schedule; increase the individual alternative minimum tax exemption amount by $5,000 (single) and $10,000 (joint) for 2003 and 2004, and maintain the level for 2005; increase the bonus depreciation to 50 percent and extend it through 20 June 2005; increase the amount that can be expensed from $25,000 to $75,000; and increase the phaseout threshold amount from $200,000 to $325,000. Cost: No official estimate was available at the time of the preparation of this Budget Week. It is expected, however, that this legislation will reduce revenue by $56.6 billion in 2003 and by $535.7 billion over 11 years. Due to the increase in refundable tax credits, which are characterized as spending, the bill will increase budget authority and outlays by $3.6 billion in fiscal year 2003, and by $13.8 billion over the period of fiscal years 2003-13. Budget Act: H.R. 2 generally complies with reconciliation instructions and revenue and spending levels in the fiscal year 2004 budget resolution. Even though the bill slightly exceeds its revenue target, it is deemed under the Congressional Budget Act to comply with the instruction because the overage, $700 million, does not exceed 20 percent of the combined cost of the bill and the combined cost does not exceed $550 billion. The bill is also generally consistent with the other appropriate levels in the budget resolution. The revenue loss is well within the permissible levels for fiscal year 2003 and for the 11-year period (which included non-reconciled tax savings). Similarly, for the same period, the bill is within the Committee on Ways and Means' 302(a) allocation of new budget authority. Because there is new entitlement authority included in the bill, increasing the amount of refundable tax credits, that first becomes effective in fiscal year 2003, H.R. 2 will technically violate section 401 of the Congressional Budget Act. This section includes a point of order against a measure providing new entitlement authority, such as refundable tax credits, in the current fiscal year. Though this technical violation applies, the new entitlement authority in this measure for fiscal year 2003 was specifically assumed to occur under the budget resolution currently in force, and is hence consistent with that resolution. http://www.house.gov/budget/budgweek30011.htm 5/2/03 Senate Hopes to Unveil Tax Bill Next Week By Donna Smith http://news.findlaw.com/politics/s/20030502/congresstaxesdc.html WASHINGTON (Reuters) - Lawmakers hope to take action next week on President Bush's tax cut proposals, despite Senate disagreement over dividend tax cuts and aid to states. Bush is calling for eliminating taxes on stock dividends and accelerating scheduled income tax cuts. In a speech in California on Friday he pointed to the 6 percent unemployment rate in April as a reason to back his proposals. "That 6 percent number should say loud and clear to members of both political parties in the United States Congress, we need robust tax relief so our fellow citizens can find a job," Bush said. Sen. Max Baucus of Montana, the top Democrat on the Senate Finance committee, finds the dividend proposal unacceptable. He is pushing for as much as $40 billion in aid to cash-strapped states. But conservative Republicans have said they will not support financial aid to the states. Senate Finance Committee Chairman Chuck Grassley, an Iowa Republican, plans to unveil his version of a $350 billion 10-year tax cut on Tuesday even though members of his committee are split on key elements of it, congressional aides said. Grassley is trying to fit elements of Bush's original $726 billion 10-year plan into a $350 billion amount approved by the Senate. Moderates worried about rising deficits succeeded in limiting the size of the Senate plan. ALL THE ELEMENTS The House of Representatives is expected to vote on a $550 billion package next week that includes all of the elements of Bush's proposal. But it would lower, not eliminate, dividend taxes. It would also reduce taxes on capital gains on the sale of stocks and other assets. Democrats oppose big new tax cuts, arguing Bush's plan will add to deficits and lead to higher interest rates, benefit the wealthy and provide little stimulus to the soft economy. Grassley's package is expected to include parts of Bush's bill, including accelerating scheduled income tax cuts, increasing the child tax credit and providing more tax relief for married couples. Tax breaks for businesses to encourage investment spending are also expected to be part of the package. But Grassley is struggling to win compromise on the core element of Bush's original plan -- elimination of dividend taxes. He had hoped to cobble together a bill that would win bipartisan support, but congressional aides say that appears unlikely and he will have to rely on his own party to pass the bill despite divisions among Republicans. Senate Majority Leader Bill Frist, a Tennessee Republican who sits on the Finance panel, has suggested phasing in a three-year temporary reduction in dividend taxes. The expectation would be that the temporary tax cut would eventually become permanent. But the proposal has been called a "gimmick" by Sen. Olympia Snowe of Maine, a Republican moderate who wants to limit the tax package to $350 billion. ======================================== H.R.2 - Jobs and Growth Tax Act of 2003 >> http://capwiz.com/c-span/issues/bills/?billtype=H.R.&billnumb=2&congress=108 S.2 - Jobs and Growth Tax Act of 2003 >> http://capwiz.com/c-span/issues/bills/?billtype=S.&billnumb=2&congress=108 Senate Tax Panel Passes Smaller Bush Plan Thu May 8, 2003 07:18 PM ET http://reuters.com/newsArticle.jhtml?type=topNews&storyID=2708967 WASHINGTON (Reuters) - The U.S. Senate Finance Committee on Thursday approved a compromise tax plan that slashes President Bush's proposed dividend tax cut by capping the amount that would be tax free. The committee passed the measure on a vote of 12-9, mostly along party lines. It advances to the full Senate where lawmakers said they expect it to change. The bill would provide a net $350 billion in tax cuts over 10 years and would exempt the first $500 of dividend income from taxes. An additional 10 percent of dividend income above $500 also would be excluded from taxes, with that rising to 20 percent in 2008 through 2012. It also includes $20 billion in aid to cash-strapped states. The bill contains other elements of Bush's original $726 billion plan, including speeding up scheduled income tax cuts. The bill provides more than $440 billion in new tax cuts and state aid, but more than $80 billion of the cost would be offset by revenue increasing measures, including one that affects U.S. citizens working overseas. The Republican-controlled House of Representatives was expected to pass its $550 billion version of Bush's plan on Friday. That bill would cut maximum dividend and capital gains tax rates to 15 percent. Dividends are now taxed at normal income rates and most capital gains are taxed at 20 percent. ======================= Information about bill H.R. 2 http://clerkweb.house.gov/cgi-bin/lgwww_bill.pl?200002 TEXT - H.R.2 Jobs and Growth Tax Act of 2003 (Introduced in House http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.2: BILL STATUS: H.R.2 Title: To amend the Internal Revenue Code of 1986 to provide additional tax incentives to encourage economic growth. Sponsor: Rep Thomas, William M. [CA-22] (introduced 2/27/2003) Cosponsors: 51 Related Bills: S.2 Latest Major Action: 2/27/2003 Introduced/originated in House http://thomas.loc.gov/cgi-bin/bdquery/z?d108:H.R.2: S-2 - SENATE BILL: http://thomas.loc.gov/cgi-bin/bdquery/z?d108:SN00002: CONTACT CONGRESS: http://www.house.gov/ http://www.senate.gov/ THIS TAX BILL IS A JOKE! AND SO IS CONGRESS! Tax Bill?? — aries72, Sat May 10 01:52
APFN"THE TAX BILL FIGHT" - H.R. 2Thu May 8 21:21:41 2003208.152.73.132"THE TAX BILL FIGHT"If you've been watch this fight on C-SPAN you have beenrunning the to bathroom every five minutes!Jobs and Growth Tax Act of 2003 Legislative Update http://www.house.gov/budget/ Bill: Jobs and Growth Tax Act of 2003. green Committee: Ways and Means http://www.house.gov/budget/budgweek30011.htm Summary: This bill has been reported pursuant to reconciliation directives in the Conference Report (Report 108-71) on the budget resolution for fiscal year 2004 (H.Con.Res. 95). The Conference Report directed the Committee on Ways and Means to report an economic growth and job-creation package reducing revenue by $535 billion over 11 years, and increasing spending associated with tax relief measures by $15 billion over the same period. H.R. 2 bill makes a variety of changes to the tax code. It would tax dividends and capital gains at 15 percent for upper income earners and 5 percent for lower income workers. It would expand the child tax credit to $1,000 for 2003 through 2005, but revert to current-law phase-in for 2006. It would accelerate the expansion of the 15-percent individual income tax rate bracket and the increase in the standard deduction for married taxpayers filing joint returns, but revert to the current-law phase-in for 2006. It would accelerate the expansion of the 10-percent bracket, but revert to the current-law phase-in for 2006. It would accelerate the 2006 rate schedule; increase the individual alternative minimum tax exemption amount by $5,000 (single) and $10,000 (joint) for 2003 and 2004, and maintain the level for 2005; increase the bonus depreciation to 50 percent and extend it through 20 June 2005; increase the amount that can be expensed from $25,000 to $75,000; and increase the phaseout threshold amount from $200,000 to $325,000. Cost: No official estimate was available at the time of the preparation of this Budget Week. It is expected, however, that this legislation will reduce revenue by $56.6 billion in 2003 and by $535.7 billion over 11 years. Due to the increase in refundable tax credits, which are characterized as spending, the bill will increase budget authority and outlays by $3.6 billion in fiscal year 2003, and by $13.8 billion over the period of fiscal years 2003-13. Budget Act: H.R. 2 generally complies with reconciliation instructions and revenue and spending levels in the fiscal year 2004 budget resolution. Even though the bill slightly exceeds its revenue target, it is deemed under the Congressional Budget Act to comply with the instruction because the overage, $700 million, does not exceed 20 percent of the combined cost of the bill and the combined cost does not exceed $550 billion. The bill is also generally consistent with the other appropriate levels in the budget resolution. The revenue loss is well within the permissible levels for fiscal year 2003 and for the 11-year period (which included non-reconciled tax savings). Similarly, for the same period, the bill is within the Committee on Ways and Means' 302(a) allocation of new budget authority. Because there is new entitlement authority included in the bill, increasing the amount of refundable tax credits, that first becomes effective in fiscal year 2003, H.R. 2 will technically violate section 401 of the Congressional Budget Act. This section includes a point of order against a measure providing new entitlement authority, such as refundable tax credits, in the current fiscal year. Though this technical violation applies, the new entitlement authority in this measure for fiscal year 2003 was specifically assumed to occur under the budget resolution currently in force, and is hence consistent with that resolution. http://www.house.gov/budget/budgweek30011.htm 5/2/03 Senate Hopes to Unveil Tax Bill Next Week By Donna Smith http://news.findlaw.com/politics/s/20030502/congresstaxesdc.html WASHINGTON (Reuters) - Lawmakers hope to take action next week on President Bush's tax cut proposals, despite Senate disagreement over dividend tax cuts and aid to states. Bush is calling for eliminating taxes on stock dividends and accelerating scheduled income tax cuts. In a speech in California on Friday he pointed to the 6 percent unemployment rate in April as a reason to back his proposals. "That 6 percent number should say loud and clear to members of both political parties in the United States Congress, we need robust tax relief so our fellow citizens can find a job," Bush said. Sen. Max Baucus of Montana, the top Democrat on the Senate Finance committee, finds the dividend proposal unacceptable. He is pushing for as much as $40 billion in aid to cash-strapped states. But conservative Republicans have said they will not support financial aid to the states. Senate Finance Committee Chairman Chuck Grassley, an Iowa Republican, plans to unveil his version of a $350 billion 10-year tax cut on Tuesday even though members of his committee are split on key elements of it, congressional aides said. Grassley is trying to fit elements of Bush's original $726 billion 10-year plan into a $350 billion amount approved by the Senate. Moderates worried about rising deficits succeeded in limiting the size of the Senate plan. ALL THE ELEMENTS The House of Representatives is expected to vote on a $550 billion package next week that includes all of the elements of Bush's proposal. But it would lower, not eliminate, dividend taxes. It would also reduce taxes on capital gains on the sale of stocks and other assets. Democrats oppose big new tax cuts, arguing Bush's plan will add to deficits and lead to higher interest rates, benefit the wealthy and provide little stimulus to the soft economy. Grassley's package is expected to include parts of Bush's bill, including accelerating scheduled income tax cuts, increasing the child tax credit and providing more tax relief for married couples. Tax breaks for businesses to encourage investment spending are also expected to be part of the package. But Grassley is struggling to win compromise on the core element of Bush's original plan -- elimination of dividend taxes. He had hoped to cobble together a bill that would win bipartisan support, but congressional aides say that appears unlikely and he will have to rely on his own party to pass the bill despite divisions among Republicans. Senate Majority Leader Bill Frist, a Tennessee Republican who sits on the Finance panel, has suggested phasing in a three-year temporary reduction in dividend taxes. The expectation would be that the temporary tax cut would eventually become permanent. But the proposal has been called a "gimmick" by Sen. Olympia Snowe of Maine, a Republican moderate who wants to limit the tax package to $350 billion. ======================================== H.R.2 - Jobs and Growth Tax Act of 2003 >> http://capwiz.com/c-span/issues/bills/?billtype=H.R.&billnumb=2&congress=108 S.2 - Jobs and Growth Tax Act of 2003 >> http://capwiz.com/c-span/issues/bills/?billtype=S.&billnumb=2&congress=108 Senate Tax Panel Passes Smaller Bush Plan Thu May 8, 2003 07:18 PM ET http://reuters.com/newsArticle.jhtml?type=topNews&storyID=2708967 WASHINGTON (Reuters) - The U.S. Senate Finance Committee on Thursday approved a compromise tax plan that slashes President Bush's proposed dividend tax cut by capping the amount that would be tax free. The committee passed the measure on a vote of 12-9, mostly along party lines. It advances to the full Senate where lawmakers said they expect it to change. The bill would provide a net $350 billion in tax cuts over 10 years and would exempt the first $500 of dividend income from taxes. An additional 10 percent of dividend income above $500 also would be excluded from taxes, with that rising to 20 percent in 2008 through 2012. It also includes $20 billion in aid to cash-strapped states. The bill contains other elements of Bush's original $726 billion plan, including speeding up scheduled income tax cuts. The bill provides more than $440 billion in new tax cuts and state aid, but more than $80 billion of the cost would be offset by revenue increasing measures, including one that affects U.S. citizens working overseas. The Republican-controlled House of Representatives was expected to pass its $550 billion version of Bush's plan on Friday. That bill would cut maximum dividend and capital gains tax rates to 15 percent. Dividends are now taxed at normal income rates and most capital gains are taxed at 20 percent. ======================= Information about bill H.R. 2 http://clerkweb.house.gov/cgi-bin/lgwww_bill.pl?200002 TEXT - H.R.2 Jobs and Growth Tax Act of 2003 (Introduced in House http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.2: BILL STATUS: H.R.2 Title: To amend the Internal Revenue Code of 1986 to provide additional tax incentives to encourage economic growth. Sponsor: Rep Thomas, William M. [CA-22] (introduced 2/27/2003) Cosponsors: 51 Related Bills: S.2 Latest Major Action: 2/27/2003 Introduced/originated in House http://thomas.loc.gov/cgi-bin/bdquery/z?d108:H.R.2: S-2 - SENATE BILL: http://thomas.loc.gov/cgi-bin/bdquery/z?d108:SN00002: CONTACT CONGRESS: http://www.house.gov/ http://www.senate.gov/ THIS TAX BILL IS A JOKE! AND SO IS CONGRESS!
Main Page - Friday, 05/09/03
Message Board by American Patriot Friends Network [APFN]
APFN MESSAGEBOARD ARCHIVES
