On April 18, the House approved, 229-198, legislation (H.R. 586) that would make permanent the tax cuts in the $1.35 trillion tax package (P.L. 107-16) signed into law last year (see The Source, 6/8/01).
Under the current law, all tax provisions enacted last year, will expire by December 31, 2010. Among the provisions that would be made permanent by the bill are the marriage tax penalty relief provisions, the increase in the child tax credit, the expanded dependent care tax credit, and the repeal of the estate tax. The legislation also moves up the effective date of the adoption tax credit from FY2003 to FY2002. Additionally, the tax rates that will be gradually reduced to 35, 33, 28, and 25 percent by FY2006 would become permanent under the bill.
