Although the Senate and House have both passed their separate versions of the tax reconciliation bill, Congress has yet to vote on and pass a final measure. One of the major differences between the two bills is that the House passed a two-year extension of low capital gains and dividends rates, while the Senate did not.

Senate Finance Committee Chairman Charles Grassley (R-IA), who pushed for the inclusion of those rates but ultimately was unable to get his way, said yesterday that including those rates in the final version of the tax reconciliation bill will prove to be a major hurdle. Conference negotiations on the bill are expected to get under way once the House returns from recess the week of January 30.