http://www.washingtonpost.com/wp-dyn/content/article/2006/05/09/AR2006050900651.html?nav=rss_politicsGOP Reaches Deal on Tax Cuts
$70 Billion Measure Would Extend Breaks
By Jonathan Weisman and Paul Blustein
Washington Post Staff Writers
Wednesday, May 10, 2006; Page A01
House and Senate Republican negotiators reached a final agreement yesterday on a five-year, nearly $70 billion tax package that would extend President Bush's deep cuts to tax rates on dividends and capital gains, while sparing about 15 million middle-income Americans from the alternative minimum tax.
Republican leaders hope to pass the agreement swiftly. House consideration is scheduled for tonight, with the Senate likely to send the measure to the White House for the president's signature by the end of the week. But the package remains controversial, with GOP leaders saying it is essential to sustain a strong economic recovery and Democrats and a few Republicans saying the cuts would mainly benefit the wealthy and add to the long-term deficit.
"Keeping taxes low helps Americans find and keep work, supports families and communities with good job bases, and makes America a great place to do business for companies both here at home and those overseas looking for a place to invest," Senate Majority Leader Bill Frist (R-Tenn.) said in a statement.
But with the budget deficit still expected to exceed $300 billion this year, despite a strong economy, opponents say the government cannot afford to add $70 billion more over the next five years.
"The point is the preponderance of these revenues will go to upper-income people, people who make a million dollars or more," Sen. Olympia J. Snowe (R-Maine) said yesterday. "It's a question of priorities."...
How Much Would You Save
Under the Plan?
Income, in 2005 dollars.........Average tax saving
$10,000-20,000......................$2
$20,000-30,000......................9
$30,000-40,000......................16
$40,000-50,000......................46
$50,000-75,000......................110
$75,000-100,000.....................403
$100,000-200,000...................1,388
$200,000-500,000...................4,499
$500,000-1 million..................5,562
More than $1 million...............41,977
SOURCE: Tax Policy Center
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