A House Panel Approves $10B Tax Package

By Associated Press
May 16, 2008

WASHINGTON — The House's tax-writing committee yesterday approved a multifaceted tax package it said would save people almost $10 billion through expansion of the child tax credit and creation of a new deduction for property taxes. But the Ways and Means Committee put off for another day the annual debate over what to do with the alternative minimum tax that threatens millions of taxpayers with thousands of dollars in extra taxes apiece unless Congress acts to suppress it.

The package, approved 25-12, includes some 60 provisions encompassing incentives for investment in renewable energy, renewal of specific tax breaks that have expired or will expire this year, and new help for parents, homeowners, and lawyers. The total cost would be about $57 billion. In addition to the $10 billion in new relief for individuals, it contains $20 billion in renewable energy incentives.

It's paid for mainly by closing a loophole allowing hedge fund managers and others working for offshore corporations to defer tax on their compensation and by delaying implementation of a tax break for multinational corporations operating overseas.