Federal Fiscal Year 06 Tax Cuts & Federal Fiscal Year 07 Tax Proposals

The U.S. House and Senate remain in conference to work out the differences between their competing FY 2006 tax bills. It is anticipated that the conference agreement will be released and voted upon in March 2006. The President’s budget calls for making permanent most of the tax cuts enacted since 2001. The benefits of such a proposal would be highly skewed to the highest income taxpayers: 20% of the benefits would go to the top 0.3% of the population – households with income of more than $1 million.