Number: RS22322
Title: Taxes and Fiscal Year 2006 Budget Reconciliation: A Brief Summary
Authors: David L. Brumbaugh, Government and Finance Division 
Abstract: On April 28, 2005, Congress approved a FY2006 budget resolution (H.Con.Res. 95) with reconciliation instructions calling for tax cuts of $11 billion in FY2006 and $70 billion over five years. Congress began consideration of the tax-reduction reconciliation legislation as 2005 drew to a close. On November 15, the House Ways and Means Committee and the Senate Finance Committee approved separate tax-cut proposals as H.R. 4297 and S. 2020, respectively. The full Senate approved a slightly modified version of S. 2020 on November 18; the House passed H.R. 4297 on December 8. On February 2, 2006, the Senate approved H.R. 4297 after amending it by replacing the contents of the House-passed bill with those of S. 2020. In addition, on December 7 the House passed "stand alone" bills extending the increased AMT exemption (H.R. 4096) and providing disaster-related tax benefits (H.R. 4440). The disaster-related bill was approved by the Senate, signed by the President, and became P.L. 109-135, but the Senate did not act on H.R. 4096. On May 9, a conference committee reached agreement on reconciliation legislation, which it approved as the Tax Increase Prevention and Reconciliation Act of 2005 (H.R. 4297; enacted as P.L. 109- 222). The plan extends the dividend and capital gains reductions for two years and AMT relief for one year. Many extenders, however, were not included in the package and are expected to be addressed in forthcoming legislation.
Pages: 5
Date: June 9, 2006