Where’s the Relief? A Summary of H.R. 4297: The Tax Relief Extension Reconciliation Act of 2005

This brief summarizes the tax bill passed in December by the U.S. House, at a cost of $56.2 billion in lost revenues from 2006 through 2010. While labeled as a tax “relief” package, its major provisions primarily benefit the high-income earners who have overwhelmingly benefited from the Bush tax cuts enacted since 2001 and not middle and lower income families. 40.1% of the total tax cuts in the bill will go to households earning over $1 million a year. The Senate reconciliation tax bill, which passed in November, is less extreme.