H.R. 470 would amend the Internal Revenue Code of 1986 to provide for permanent tax incentives for economic growth.
Detailed Summary
Economic Recovery and Middle-Class Tax Relief Act of 2009 - Makes permanent the reductions in the dividend and capital gain tax enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Amends the Internal Revenue Code to: (1) reduce individual and corporate income tax rates; (2) repeal the alternative minimum tax for individual taxpayers; (3) allow inflation adjustments to the basis of capital assets in determining gain or loss; (4) reduce the capital gains tax rate for corporations; (5) repeal limitations on the expensing allowance for depreciable business assets; (6) make permanent the tax credit for increasing research activities; (7) extend the carryback period for net operating losses to seven years; (8) increase the child tax credit; (9) exclude from gross income in 2009 distributions from an individual retirement plan (IRA) and exempt IRAs from mandatory distribution requirements after 2009; and (10) increase the tax deductions for tuition and related expenses and for the interest on qualified education loans.
Makes 1% across-the-board rescissions in non-defense discretionary spending for FY2009.
Status of the Legislation
Latest Major Action: 1/13/2009: Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Points in Favor
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Points Against
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Visitor Comments
Joseph in Atlanta
February 5, 2009, 11:52am (report abuse)Although there are some merits associated with this bill it seems to harp on the politics of the last eight years. It's primary focus appaers to be on carrying forward the faulted trickle down effects of tax cuts from the last twenty years and offers nothing to get a failing economy up and operational again. I do see some merits associated with the bill like operations loss carry over as well as a easement on 401K distributions for the last tax year but I fail to see what it does to yield unemployed Americans as well as Americans fighting off foreclosure to put money back into the ecnomy. This legislation only provides incentive to Americans currently working and does nothing to propose or formulate additional job growth. It may appear to put money into the economy in back handed way but it will offer little in terms of economis recovery.
Pat in Willimasport PA
February 23, 2009, 12:41am (report abuse)I may need IRA/401K money to make my mortgage payment. My wife and I are both out of work and we may need this money to make mortgage payments. Why should I have to pay a 10% penality during these times.