Don't Mess With Taxes

That was easier than I thought it might be.

The House actually began and completed consideration today of H.R. 4213, the bill to extend 49 tax provisions set to expire at the end of the year.

Representatives approved the measure by a vote of 241 to 181.

Winners: These extenders, as I noted in my post Tax break extenders on tap earlier today, include several that are popular with us rank-and-file taxpayers:

• Deduction of state and local general sales taxes,
• Additional standard deduction for real property taxes,
• Deduction for qualified tuition and related expenses,
• Deduction by educators for certain classroom expenses, and
• Direct tax-free transfer of IRA distributions to a charity.
  

Losers: Not as pleased, however, are money managers.

One of the ways to pay for the extended tax breaks is an increase on taxes charged on investment carried interest, also discussed in my earlier post.

Private equity and venture firms that would be hit hardest by the hike of the tax rate from 15 percent to 35 percent are now looking to the Senate for help. In prior years, that body has deleted similar provisions from extender bills.

This year, however, there's the worry that the crush of year-end legislation might make it too tempting to simply move the bill along.

"At three in the morning when you've been working on health care for months and you just want to go home, you might just throw your hands up and say, 'We'll take care of this later'," said Mark Heesen, president of the National Venture Capital Association.

Stay tuned.

Related posts:

• Tax break extenders on tap
• An easier estate tax and extenders

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