CQ TODAY MIDDAY UPDATE
Nov. 9, 2007 – 2:07 p.m.
House Passes Tax Bill After Procedural Protests

The House on Friday passed an $82.5 billion tax bill that would extend expiring tax breaks for a year and shield millions of Americans from exposure to the alternative minimum tax.

Passage of the measure, by 216-193, followed a procedural revolt earlier in the day by Hispanic Democrats angry at their House leadership.

The tax bill would prevent the alternative minimum tax, or AMT, from reaching millions more Americans in the 2007 tax year than it did in 2006. It also would extend a number of expiring tax breaks, such as the research and development credit and the deduction for state sales taxes, and it would expand the child tax credit.

The tax breaks and AMT “patch” are popular with both parties, but the revenue-raising offsets included in the bill by the Ways and Means Committee drew intense GOP opposition and dismayed some centrist Democrats. Tax-writers said the offsets were necessary to meet pay-as-you-go budget rules adopted by the Democratic Congress early this year.

The bill’s future looks rocky. Senate Finance Chairman Max Baucus, D-Mont., has said he does not think one of the biggest offsets can pass the Senate. And the White House issued a veto threat earlier this week, echoing the Republican argument that offsets are not necessary.

Source: CQ Today Midday Update
Political Clippings compiled from BNN Frontrunner and CQ Politics.com.
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