Daily Tax Update - July 23, 2012: Senate to Consider Extension of Bush Tax Cuts

SENATE TO CONSIDER EXTENSION OF BUSH TAX CUTS:  This week, the Senate will continue consideration of a one-year extension of the 2001 and 2003 tax cuts.  The bill, "the Middle Class Tax Cut Act" (S. 3412), which is sponsored by Senate Majority Leader Harry Reid, would extend the 2001 and 2003 tax cuts for those taxpayers with income under $250,000 a year while letting tax rates rise for higher income brackets.  The bill would also extend through 2013 the American opportunity tax credit, the expanded child tax credit, the expanded earned income tax credit, and increased section 179 expensing.  The bill also includes an alternative minimum tax patch for 2012. 

A Republican alternative will also be offered, the "Tax Hike Prevention Act of 2012" (S. 3413), which would extend all of the 2001 and 2003 tax cuts.

Finance Committee Chairman Max Baucus has released an analysis comparing the two tax cuts plans.  The document can be accessed here.

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