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Major Tax Issues in the 108th Congress (CRS Report for Congress)

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Release Date Revised Dec. 2, 2004
Report Number IB10110
Authors David L. Brumbaugh, Government and Finance Division
Source Agency Congressional Research Service
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Summary:

As 2004 progresses, the congressional tax policy debate continues to focus on several issues it considered in 2003. One such focus is the broad tax cuts Congress enacted in May 2003, as the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA; P.L. 108-27). At issue in 2004 is whether to extend a number of JGTRRAs tax reductions that are scheduled to expire at the end of the current year. A second prominent issue is the controversy over the extraterritorial income (ETI) tax benefit for U.S. exports, which was found to be impermissible by the World Trade Organization (WTO); both the House and Senate tax-writing committees passed legislation repealing ETI in late 2003. The legislation also contains broader provisions affecting U.S. and overseas investment, and Congress continued to debate the bills through the first months of 2004. Other tax issues that Congress has addressed in the first part of 2004 include pension reform legislation, extension of a moratorium on internet taxation, and taxes related to highway funding.