Senate Approves New Tax Bill Extending Bush Tax Cuts For Two Years….Done Deal, Now It Moves To The House

Posted By on December 15, 2010

The U.S. Senate on Wednesday officially approved an $858 billion bill extending the Bush-era tax cuts for two years in an 81-19 vote. Next up the House vote…..huff and puff maybe as soon as Thursday.

The new legislation would extend Bush-era tax cuts for an additional two years for people of all income levels. It would cut payroll taxes for workers in 2011 and extend a range of expired business-tax breaks like the research-and-development credit. the legislation also reduces federal payroll taxes for most American workers for one year by two percentage points to 4.2% from 6.2%. Jobless benefits would be extended for 13 months as well as tax benefits Obama championed for low-income families that were part of 2009 economic-stimulus legislation.

The bill also allows businesses to write off 100% of equipment purchases made after Sept. 8, 2010, but before Jan. 1, 2012. It shields most taxpayers from the alternative minimum tax in 2010 and 2011. And it renews a host of expired tax breaks for businesses, including a tax break on banks’ overseas income, quicker depreciation for restaurant improvements and the 45-cent tax credit for ethanol blenders.

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