Tax News

CCH (cch.taxgroup.com) reports:

  House lawmakers approved the House fiscal year (FY) 2010 budget resolution on April 2, after voting down alternatives offered by Republican lawmakers and members of the House Progressive Caucus and the Congressional Black Caucus (CBC). House Speaker Nancy Pelosi, D-Calif., said the House budget resolution, which passed by a vote of 233 to 196, would have reduced the federal budget deficit at a quicker pace, but for the recent economic turbulence that has caused higher government spending in order to stimulate the economy.

  House Minority Leader John Boehner, R-Ohio, criticized the Democratic budget, saying the higher spending will mortgage the future of America's children and grandchildren. "The budget before the House makes the economy worse and will destroy more American jobs," Boehner said.

  The other budgets were largely symbolic policy statements and were not expected to win passage. The Progressive Caucus substitute budget, offered by Rep. Lynn Woolsey, D-Calif., would close corporate tax loopholes and reinstate a 0.25-percent tax on all stock transactions. The Republican Study Committee substitute budget, offered by Rep. Tom Price, R-Ga., would provide a hard freeze to nondefense discretionary spending. The CBC budget, offered by Rep. Barbara Lee, D-Calif., would repeal the 2001 and 2003 Bush-era tax cuts and add a 0.565-percent surtax on adjustable gross income exceeding $500,000 for individuals. The GOP substitute budget, offered by Rep. Paul Ryan, R-Wisc., would permanently extend the 2001 and 2003 tax cuts, permanently fix the alternative minimum tax, and lower the corporate tax rate to 25 percent.

  When Congress returns from its Easter recess during the week of April 13, the House and Senate will begin work on a budget reconciliation bill that will likely be voted on in May, Pelosi told reporters. The speaker also said she will work to ensure energy legislation now offered in Congress would not increase the burden on rate-payors. Pelosi said Democrats are building a consensus on energy legislation and would likely bring a cap-and-trade bill to the House floor before the end of the 1st session of the 111th Congress. The House will also soon consider legislation to address predatory lending, credit card reform and mortgage scams, she said.

  By Stephen K. Cooper, CCH News Staff