Senate OKs $70 Billion Tax Bill

The $70 billion tax bill extending the AMT patch and capital gain and dividend cuts is almost sure to become law as it was passed 54-44 in the Senate yesterday. Democrats criticized the bill for overemphasizing low tax rates on investment income. Finance Chairman Charles Grassley promised to bring forth language extending tax relief on research credits, credits for higher education expenses and extending deductibility of state and local income taxes as part of a pension reform bill later this month, but Democrats noted that this reduced the likelihood of these extensions occuring.

Personally, I would have liked a longer AMT patch, extension of the bipartisan tax extensions (higher education, research credits) and a one-year, rather than two, extension of capital gain and dividend rates. Keep in mind, however, that I am a college faculty member and live in a state with no state income tax--therefore, my position is biased.