Senate Passes Partial Tax Package

Yesterday, the Senate voted 51 – 48 in favor of extending the Bush tax cuts on all but the highest two rates.  All but two Democrats (Webb of Virginia and Lieberman of Connecticut – who are both retiring at the end of the year) voted for the package and it attracted no Republican votes. The package did not address the estate tax – which increases from 35 to 55 percent at the end of this year – the 50-plus tax provisions that expired at the end of last year, the annual Alternative Minimum Tax patch, or the expiration of the payroll tax holiday.  The House is scheduled to take up a bill next week, and will signal their support for extending all the Bush tax cuts, setting the stage for comprehensive tax reform next year.  The message to the voters is this: don’t expect a deal to avoid the fiscal cliff before Election Day. AGC of America and our coalition partners have urged Congress to avoid the negative fiscal impact of going over the fiscal cliff and instead extend all expired and expiring tax cuts for one year to give Congress a chance to address comprehensive tax reform after the election. For more information, please contact Jeff Shoaf at (202) 547-3350 or shoafj@agc.org.