Time Running Out on New Tax Extension Plan, Republican Says

Congressional leaders are pushing to reach a deal on a must-pass U.S. government spending bill as a Friday deadline nears to avoid a federal shutdown, even as they concede that lawmakers may have to work into the weekend and beyond. Complicating talks are simultaneous negotiations over extending a package of tax breaks that expired at the end of 2014. Late Monday, House Ways and Means Chairman Kevin Brady of Texas filed a plan to extend most tax breaks that expired in 2014 to continue through 2016. The measure also would revise rules for real estate investment trusts. AshLee Strong, a spokeswoman for House Speaker Paul Ryan, said in an e-mail Tuesday, “We are still hopeful for a larger agreement that includes permanent tax relief for families and small businesses, but this is another option.” Second-ranking Senate Republican John Cornyn of Texas said Monday that Congress may leave town for the holidays with such a two-year extension of tax breaks, instead of coming up with a new plan to make some of them permanent as he and many members said they want to do. Congress has passed a series of short-term extensions of the tax breaks, including those for research and development and small-business investments. Another extension would have to be passed soon to give the Internal Revenue Service time to print forms for the 2015 filing season. Source: www.arcamax.com