Saturday, December 05, 2015

Lawmakers Near Deal on Billions in Tax Cuts

DEC. 4, 2015

WASHINGTON — Republican and Democratic negotiators closed in Friday on a major package of tax cuts for businesses and individuals that could exceed $700 billion in forgone revenues over a decade, and planned to work through the weekend in hopes that Congress can approve it before quitting for the year.

Among its most significant parts, the proposed deal on the so-called tax extenders would make permanent a tax credit for corporations’ research and development expenses that dates to 1981. That credit has been extended more than a dozen times, but for no more than a year or two — largely to minimize the official price tag of its extension. A popular write-off for small businesses’ major purchases also would be made permanent.

President Obama and Democrats in Congress have demanded in return that the tax package make permanent three provisions that were among the president’s first-term economic stimulus measures: an expanded earned-income tax credit for low-wage workers, an expanded child tax credit and a credit for four-year college costs.

(More here.)


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