Tax News

CCH (cch.taxgroup.com) reports:

  The Senate on June 4 gave final approval to the fiscal year 2009 budget conference report on a bipartisan vote of 48-45. The House is expected to also approve the measure on June 5. The fiscal blueprint calls for $340 billion in tax relief over five years, including extensions of marriage penalty relief, the child tax credit and the 10-percent bracket, as well as allowing for estate tax reform. It includes an additional year of alternative minimum tax relief and it provides for property tax relief, energy and education tax relief and extenders.

  Surplus budget funds cover the cost of most of the tax provisions, but some are paid for with additional offsets. The bill makes certain that individuals who relinquish their U.S. citizenship or long-term U.S. residency pay the same federal taxes for appreciation of assets, such as stocks or bonds, which they would pay if they sold them as U.S. citizens or residents. It also increases the penalty for entities failing to file required information returns. "We have passed a fiscally responsible budget today," said Senate Budget Committee Chairman, Kent Conrad, D-N.D. "This plan provides tax relief for the middle class. It makes critical investments in energy, education and infrastructure and it returns the budget to surplus in 2012 and 2013."

  Office of Management and Budget Director, Jim Nussle, sharply criticized the budget blueprint, calling it a repeat of the previous year's "tax and spend game plan." Nussle, in a written statement, said the budget resolution would "amount to the largest tax increase in our nation's history" and add $209 billion in new spending over five years without addressing the long-term entitlement crisis.

  By Jeff Carlson, CCH News Staff

OMB Release: Director Nussle on Passage of FY09 Budget Resolution

SFC Release: Baucus Tax Cuts for Families, Homeowners, Soldiers, Remain in Final Budget for Fiscal Year 2009