As posted here many times, we have been concerned about the likely prospects of the Bush-era tax cuts expiring at the end of 2010. When the 2001 tax law was enacted, it contained a 'sunset provision'. It is slated to 'sunset' on 12/31/10 if Congress does not act. It is puzzling that Congress has had 10 years to deal with this, yet up until today, they showed no real urgency to do anything. So, today the House of Representatives has passed a bill that will extend some of the cuts but not all. The House bill allows the cuts to stay in place for those at lower income levels. But, those making $200k (for singles) and $250k (married couples) will see their tax rates rise because the old lower rates will be allowed to expire for them.
The Wall Street Jounal has the story here. It is not certain whether the Senate will agree with the House bill. Therefore, the extension of the Bush-era tax cuts is not a done deal. We have to see how things develop in the weeks ahead as the Senate debates the issue.
