It took until Friday morning but the United States House of Representatives finally passed the controversial tax cut bill. The bill will extend the Bush tax cuts for 2 more years, extend unemployment insurance, and offer payroll deductions to employees.
The bill also allows companies to write off 100% of all capital investments in 2011. There are also other tax breaks that were given to businesses to help bolster the economy. The smart money was on the bill passing once the President and Republicans reached a compromise on the deal last week.
Now that the bill has passed maybe the $1.3 trillion dollars that corporations are holding on their balance sheets will come off of the sidelines. Maybe corporations will finally start hiring and start loosening the purse strings for capital investments. This will be interesting to watch how it all plays out over the next year. One thing is for sure, Businesses and individuals can no longer use tax uncertainty as a reason for not investing.
One fascinating sidenote(to me at least) is that the tax bill passed on the same day that the Omnibus budget bill went down. It looks like the Senate won’t vote on the $1.2 trillion dollar Omnibus bill this year. Will the uncertainty over the passage of the government’s spending bill hurt the market? Will this turn into a knockdown drag out fight as well?
Congress Passes Tax Cuts Deal is a post from:
©2010 . All Rights Reserved.
.
