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Bill would permanently extend tax relief

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POSTED: September 17, 2010 11:00 a.m.
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U.S. Sen. Johnny Isakson

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WASHINGTON — U.S. Sen. Johnny Isakson, R-Ga., is co-sponsoring legislation to permanently extend tax relief provisions passed by Congress in 2001 and 2003. If Congress fails to take action, this tax relief would expire at the end of this year.
“Our families and small businesses cannot plan their budgets or grow their businesses when the tax bill coming from Washington is uncertain and unpredictable,” Isakson said. “By making these tax provisions permanent, we can create a pro-growth economic environment where families and small businesses can thrive.”
Specifically, the bill would extend the 2001 and 2003 individual income tax relief by preserving the 10 percent, 15 percent, 25 percent, 28 percent, 33 percent and 35 percent income tax brackets. The legislation also would extend the child tax credit at $1,000 per child and continue marriage penalty relief.
The legislation also would permanently exempt many Americans from the alternative minimum tax in 2010 and beyond.  Currently, more than 26 million American families are subject to this tax, because it was not indexed for inflation when it was created in 1969. The legislation would increase the 2010 exemption to $47,450 for single and head of household filers, $72,450 for married people filing jointly and for qualifying widows or widowers, and $36,225 for married people filing separately. Exemption levels would continue to increase each year.
In addition, the bill would offer “death tax” relief by providing for a 35 percent estate tax rate, a unified estate/gift exemption amount of $5 million per individual that is indexed for inflation and a stepped-up basis for inherited assets. The death tax fell to zero this year, but is set to come back to a 55 percent tax rate Jan. 1, 2011, if Congress fails to take action.
 

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