Senate Finance Committee Chairman Max Baucus (D-MT) “today introduced legislation to permanently cut taxes for middle class families making up to $250,000 and individuals making up to $200,000 per year,” according to a press release from his office.
Some specifics of the Middle Class Tax Cut Act:
The Middle Class Tax Cut Act of 2010 would permanently cut tax rates to 10, 15, 25, 28 and 33 percent for individuals making up to $200,000 and families making up to $250,000. Without these tax cuts, the middle class would pay taxes at rates of 15, 28, 31 and 36 percent next year.
The bill would also make the child tax credit permanent as well as the 2009 estate tax rate of 45 percent, with an exemption for estates under $3.5 million, indexed for inflation. And this estate tax policy recognizes the unique estate planning challenges of family ranchers and farmers across the country. The legislation would make permanent the current 15 percent rate for capital gains for individuals making up to $200,000 and families making up to $250,000. The bill also continues to treat dividends as capital gains rather than ordinary income.
The bill would extend the Making Work Pay tax credit, which gives all working Americans a $400 tax cut in their paycheck through 2011. It would also cut taxes for families paying college tuition, state and local sales taxes and property taxes. It would cut taxes for employers to spur sustainable energy advancements, business research and development, and investment, freeing up cash to expand and hire new workers. And the legislation would reauthorize federal unemployment insurance through 2011.