US

Congress Considering Contingency Plan For Extending Tax Breaks

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While negotiators hope to strike a deal on tax extenders before the end of the year, the House may take up a separate measure projected to extend around 46 tax extenders for two years as soon as Wednesday.

With both sides of the aisle pushing to make a number of the expired or soon-to-be expired tax breaks permanent, forging a compromise has proved to be difficult.

Democrats have called for the extension of the earned income tax credit, the child tax credit and the American Opportunity Tax, while Republicans are seeking the extension of the several business tax breaks. The repeal of the Cadillac tax on premium health care plans could also be lumped into the deal.

As negotiations continue, The Wall Street Journal reports the swelled package could cost more than $700 billion over the course of 10 years.

But with just five legislative days to before Congress is supposed to break for recess and no finalized deal, Lawmakers may have to resort to an alternative bill.

“Even though everyone is close on a deal for a big extenders package, we’re getting to the point where its necessary to post a ‘contingency plan’ bill in the event that there isn’t an agreement between the parties,” a GOP aide close to the Ways and Means Committee told the DCNF. “Ideally it would include the modifications that Ways and Means made to the 13 bills that we’re marked up and passed by in this past year.”

The legislation could be rolled out as early as Monday evening.

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