See How Your Politicians Voted
Title: Budget Reconciliation Bill
Vote Smart's Synopsis:
Vote to pass a bill that provides a net tax decrease over the next ten years.
- Amends the Internal Revenue Code to allow a tax credit of up to $500 for each of a taxpayer's qualifying children.
- Permits total aggregate tax deduction of up to $40,000 for higher education expenses that have already been paid for.
- Waives the 10 percent withdrawal tax on Individual Retirement Account (IRA) distributions if the withdrawal is used to pay higher education expenses.
- Establishes the American Dream (AD) IRA, limits contributions to $2,000 annually, and prohibits deductions for contributions to an AD IRA.
- Increases the unified estate and gift tax credit to $1 million by the year 2006.
- Postpones certain tax-related deadlines if taxpayers are affected by a Federal disaster.
- Amends the Tariff Act of 1930 to suspend taxes on the repair of certain vessels for 1 year.
- Changes the rules regarding corporate shareholder's basis in stock to state that if the untaxed portion of extraordinary dividends received is greater than the basis, it will be treated as a profit for that taxable year.
- Revises the means of translating foreign taxes into dollars by using the average exchange rate for the taxable year.
- Exempts individuals whose entire gross income comes from foreign sources and whose amount of creditable foreign taxes paid is under $300 from the foreign tax credit limitation.
- Establishes penalties for the unauthorized inspection of tax returns and tax return information.
- Repeals the requirement that wholesale liquor dealers post signs outside their stores indicating they sell liquor wholesale.