House Panel Clears Extender Tax Bill

The House Ways and Means Committee on May 15 voted out legislation that would extend expired and soon-to-expire energy and business tax credits but would pay for those credits with tax increases on certain businesses.

In a letter to committee Chairman Charles Rangel (D-NY) and Ranking Member Jim McCrery (R-LA) the Chamber voiced its support for extending through 2008 the research and experimentation tax credit, tand he deduction of state and local general sales tax, among other tax provisions that expired at the end of 2007.

However, the Chamber withheld its support of the entire bill because it includes several controversial "pay-for" provisions, including changes to tax rules for U.S. businesses with foreign or offshore partnerships and operations.

"This extension ... would provide greater certainty for American businesses and the economy. However, the Chamber believes that these provisions should not be paid for with onerous new taxes on employees, American businesses, and the economy," the Chamber said in its letter.

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