2005 Tax Reconciliation Nears Deal?

Believe it or not, rumors are floating down from Capitol Hill that conferees to the reckless 2005 tax reconciliation bill may have finally reached agreement on a bill they hope will pass both chambers. The Congress has been working on this bill for well over a year and it was starting to look like they would not be able to reach consensus. While no deal has been announced and time is running out this week before a two-week recess, the conferees may push a bill that extends reduced rates on capital gain and dividends - overwhelmingly benefiting super wealthy Americans - and a one year "patch" for the Alternative Minimum Tax. Other popular provisions, such as the business research and development tax credit and other items expiring this year would move in a seperate bill. There are still hurdles to overcome for the bill, such as a budget point of order that will surely be raised by Democrats in the Senate (since the bill violates a Senate rule prohibiting increasing the deficit outside of the bill's five-year budget window), and the possibility enough Senators may oppose the entire bill (a long-shot, but a possibility). Conferees and GOP leaders would like to finish the bill before the recess and the arbitrary and entirely symbolic deadline for filing tax returns on April 15 - but with only two days left, that may involve keeping both chambers in session into the weekend.
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