Will renewal of the 10% bracket for 05(not needed until 05) allow Tax gift

[papau]

to the corporations on investment write-off?

http://ap.tbo.com/ap/breaking/MGA6LESEPPD.html

From the NYT: <snip>Howard Dean would roll back all the tax cuts and pass new tax breaks aimed at the middle class. His rivals John Kerry, John Edwards, Wesley Clark and Joe Lieberman would keep the tax cuts that helped middle-income families and repeal those benefiting the wealthiest Americans.

Making the tax cuts permanent would cost the Treasury some $2 trillion, according to analysts at the Tax Policy Center, a research group run by the Brookings Institution and Urban Institute. <snip>

Those tax cuts(expiring in 2005) include an expansion of the bottom, 10 percent tax bracket that lowered taxes for virtually every wage earner. It includes changes that eliminated some of the so-called marriage penalty, which causes some couples to pay more than they would as two single individuals. It also includes the child tax credit, just increased to $1,000 per child, which would drop back to $700 at the end of the year. Although these items could be addressed in 2005 after they've expired, House and Senate GOP lawmakers aides said they ideally would eliminate any uncertainty and enact laws this year to sustain the tax cuts. <snip>

Senate Republican aides said renewal of the No Child Left Behind education law might also offer an opportunity to make some education and retirement saving incentives permanent.

A bigger question surrounds a law, designed as an economic stimulus, that allows businesses to immediately write off half of their investments this year. Left unchanged, the law will evaporate at the end of the year, but it will cost more to continue than the tax reductions aimed at individuals and families, said Peter Orszag,
AP-ES-01-21-04 0804EST

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