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Latest News: Legislative Updates

Bush Tax Cut Extensions Likely to Progress in Senate

Wednesday, May 14, 2014   (0 Comments)
Posted by: Michael Geatz
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The U.S. Senate voted 96-3 to open debate on a bill that will renew several tax breaks known as the Bush Tax Cuts, first passed in 2008 to help stimulate the economy. Several issues important to marine retailers are included in the tax-extender package, including a return to the $5 million exemption for the estate tax and a federal sales tax deduction for people who purchase boats that live in a state without income tax.

The bill may hit a snag during the Senate floor debate because the expired tax breaks will add an estimated $85 billion to the federal budget deficit. Some Republican lawmakers have indicated that they would like to change the package to lessen the deficit impact; in the pay-as-you-go world of federal legislation, where tax cuts must be met with equal tax increases, the breaks offer no way to pay for themselves.

Based on merit, it’s expected that the bill has the more than 60 votes needed to pass.

MRAA will continue diligently working on this issue. Estate tax reform and maintaining the sales tax break are key issues for marine retailers.