Archive for Thursday, December 10, 2009

House votes to extend $31B in tax breaks

December 10, 2009

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— The House voted Wednesday to extend $31 billion in popular tax breaks, including an income tax deduction for sales and property taxes, to be financed with a tax increase on investment fund managers and a crackdown on international tax cheats.

The 45 tax deductions and credits for businesses and individuals are scheduled to expire at year’s end. The House voted 241-181 to extend them for a year, with only two Republicans voting in favor. The bill now goes to the Senate, which has rejected the tax increase on investment managers in the past.

The tax breaks include a sales tax deduction that mainly helps people in the nine states without local income taxes, a property tax deduction for people who don’t itemize and lucrative credits that help businesses finance research and development.

The House bill would raise $24.6 billion over the next decade from the tax increase on investment fund managers and an additional $7.7 billion from a crackdown on international tax cheats, an issue the Internal Revenue Service and the Obama administration have embraced.

The bill is H.R. 4213.

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