Taxes and Fiscal Year 2006 Budget Reconciliation: A Brief Summary (CRS Report for Congress)
| Release Date |
Revised June 9, 2006 |
| Report Number |
RS22322 |
| Report Type |
Report |
| Authors |
David L. Brumbaugh, Government and Finance Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
On April 28, 2005, Congress approved a FY2006 budget resolution (H.Con.Res.95) with reconciliation instructions calling for tax cuts of $11 billion in FY2006 and $70billion over five years. Congress began consideration of the tax-reduction reconciliationlegislation as 2005 drew to a close. On November 15, the House Ways and MeansCommittee and the Senate Finance Committee approved separate tax-cut proposals asH.R. 4297 and S. 2020, respectively. The full Senate approved a slightly modifiedversion of S. 2020 on November 18; the House passed H.R. 4297 on December 8. OnFebruary 2, 2006, the Senate approved H.R. 4297 after amending it by replacing thecontents of the House-passed bill with those of S. 2020. In addition, onDecember 7 the House passed "stand alone" bills extending the increased AMTexemption (H.R. 4096) and providing disaster-related tax benefits (H.R. 4440). Thedisaster-related bill was approved by the Senate, signed by the President, and becameP.L. 109-135, but the Senate did not act on H.R. 4096. On May 9, a conferencecommittee reached agreement on reconciliation legislation, which it approved as the TaxIncrease Prevention and Reconciliation Act of 2005 (H.R. 4297; enacted as P.L. 109-222). The plan extends the dividend and capital gains reductions for two years andAMT relief for one year. Many extenders, however, were not included in the packageand are expected to be addressed in forthcoming legislation.
