Congress Talks Taxes 'Til the Break of Dawn

In an unusual ending note to the 109th Congress, the lame-duck Republican majority passed a sweeping round of tax incentive extensions. The bill included popular extensions of tax deductions for K-12 teachers paying for school supplies out of their own pocket, sales tax deductibility in states without income taxes (very biased cheer since I live in TN) plus incentives for energy, higher education (more biased cheers as an Austin Peay faculty member) and research. Additionally, the bill was loaded down with additional provisions to expand oil drilling, defer a reduction in Medicare payments to doctors, increased federal aid to ailing coal miners and trade benefits to a variety of smaller countries, leading David Obey (D-WI) to lambaste the legislation as the ultimate symbol of a "do-nothing" session.

While I am glad that the extenders were passed, it sounds like the House acted without a lot of thought or discretion on some of the other items. Expect more and probably better coverage of this legislation from other bloggers early next week.

Update: I underestimated the reaction time of Joe Kristan and Roth CPA Updates, one of no less than four posts on the legislation can be found at http://www.rothcpa.com/archives/002321.php#002321.