For the past several years, Congress
has faced a year-end deadline to pass the tax extenders bill. It has been one of Congress’s bad
habits. But it did not happen this year
causing several key pro-business tax deductions like the estate tax and
allowing business to deduct the cost of equipment purchases in the year of
purchase rather than gradually through depreciation.
practice these temporary tax deductions have become permanent because of the
sage of the annual temporary authorizations.
Congress will again be looking at tax extenders in the coming
weeks. MRAA will again push for the
repeal or, at least, passage of last year’s $3.5 million exemption of the
estate (death) tax. Last week Senator Harry
Reid (D-Nevada) said the Senate will take up tax extenders when the Chair of
the Finance Committee, Max Baucus (D-Montana) departs the Senate for a new post
as ambassador to China.