Monday, September 1st18.9°C
23003
22642

Senate votes to open debate on bill to renew expired tax breaks that would add $85B to deficit

WASHINGTON - A bill to renew a package of more than 50 expired tax breaks cleared its first hurdle in the Senate Tuesday.

Other hurdles remain, however.

The Senate voted 96 to 3 to open debate on the bill, which has strong backing from the business community but would add about $85 billion to the budget deficit.

Almost every year, Congress routinely renews the tax breaks. This year, though, they were allowed to expire at the start of the year. The Senate bill would extend the tax breaks through 2015.

"Our constituents are depending on us to extend these provisions," said Senate Majority Leader Harry Reid, D-Nev. "We will not pull the plug before our nation's recovery is complete. By passing this tax extenders package we will build our nation's economy more quickly."

The tax breaks enjoy broad bipartisan support. But some Republican senators want the opportunity to change the package, and it's not clear whether Reid will allow amendments.

Republican amendments include making some of the tax cuts permanent while adding others, including the repeal of a medical device tax that helps fund President Barack Obama's health law. Republican senators may be forced to choose between blocking a bill that provides popular tax breaks and accepting it unchanged.

"Americans deserve tax certainty, not more short-term measures," said Sen. John Thune, R-S.D.

Thune said he wants to offer several amendments, including a permanent ban on state and local Internet access taxes. A temporary moratorium on such taxes is due to expire Nov. 1.

The package pairs broad tax breaks that benefit millions with narrow ones that don't.

Among the biggest breaks for businesses: A tax credit for research and development, an exemption that allows financial companies to shield foreign profits from being taxed by the U.S., and several provisions that allow businesses to write off capital investments more quickly. There is also a generous tax credit for using wind farms and other renewable energy sources to produce electricity.

The biggest tax break for individuals allows people who live in states without an income tax to deduct state and local sales taxes on their federal returns. Another protects struggling homeowners who get their mortgages reduced from paying income taxes on the amount of debt that was forgiven.

Other more narrow provisions include tax breaks for film and theatre producers, NASCAR race track owners, manufacturers of electric motorcycles and teachers who spend their own money on classroom supplies.

The Canadian Press


Read more Business News

22253


Recent Trending




Today's Market
S&P TSX15625.73+67.561
S&P CDNX1023.991.62
DJIA17098.4518.88
Nasdaq4580.271+22.577
S&P 5002003.37+6.63
CDN Dollar0.9176-0.0018
Gold1281.70-2.1001
Oil95.96+1.29
Lumber349.60+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.0750.00
Russel Metals36.48+0.09
Copper Mountain Mining2.93+0.02
Colorado Resources0.180.00
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



22929

FEATURED Property
2056429#414 1329 KLO Road
1 bedrooms 1 baths
$89,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_








Member of BC Press Council


22810