Daily Tax Update - April 27, 2005

Yesterday, the House and Senate formally named their budget conferees for the $2.6 trillion fiscal year 2006 budget resolution. Conferees have tentatively agreed to a tax cut reconciliation amount of $70 billion over five years which is expected to be used to extend several of the 2001 and 2003 expiring tax cuts. Reconciliation protection is used to protect Senate legislation from procedural hurdles that require 60 votes to overcome and can be used to cut spending or to move tax cuts. The Senate Finance and House Ways and Means Committees must determine specifically which tax cuts should move inside the reconciliation package. Floor action on the conference agreement is expected prior to the end of this week.

  • Senate Budget Committee Chairman Judd Gregg (R-NH) said yesterday that "nothing is agreed to until everything is agreed to." Gregg added, "[W]e need a budget by the end of the week."

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