Posted by Kristin Oberlander - As the Senate mulls its version of the stimulus package this week - a bill with a $900 billion price tag - we continue to hear more about tax cuts for working families and small businesses. Yay!
Congressional leaders say they want to be able to place the bill on President Obama's desk by President’s Day, but with the While there were enough House Democrats to pass the original legislation without a single Republican vote, Senate Democrats must receive GOP support this time around in order to approve the package.
Some of the current tax provision include:
- $21 billion in small business tax relief and incentives including increased expensing amounts, the ability to include more losses on their business tax return and cash in unused tax credits;
- $730 million for small business loans;
- $208 million in Work Opportunity tax incentives to increase the hiring of disabled veterans and youths from underserved populations;
- Tax credits amounting to $500 per working individual and $1000 for married couples filing jointly;
- $15 billion in tax cuts through an expansion of Earned Income Tax Credit for families with three or more children, as well as additional marriage penalty relief for couples and increased eligibility for the Refundable Child Tax Credit for lower-income families;
- $4 billion for first-time homebuyers with additional enhancements to the existing $7,500 homebuyer tax credit;
- $300 per person tax credit for seniors on Social Security, low-income recipients of Supplemental Security Income, disabled veterans and veterans on pensions, Railroad Retirement beneficiaries and those who may not qualify for other tax credits.
One of the more substantial provisions would double the first-time homebuyer tax credit to $15,000 and allow everyone who buys a home to qualify instead of only new homeowners.
For additional information on the Senate amendment to the House stimulus bill, visit the Senate Finance Committee online.