Jan 30, 3008: Finance Committee press releases on committee bill
Jan 30, 2008: Floor Statement of Chairman Baucus
Jan 30, 2008: JCT revenue estimate: Senate Finance Committee reported bill

Relief from the Alternative Minimum Tax was scheduled to expire with tax year 2006. Background--In 1969, after Congress learned that taxpayers with incomes above $200,000 had paid no 1966 Federal tax, lawmakers enacted the AMT in order to ensure that everyone pays a minimum amount of tax, regardless of how many tax preferences or deductions they may technically be entitled to. In general, the AMT operates by requiring people to recalculate their taxes under alternative rules that (1) include certain forms of income exempt from regular tax and (2) disallow certain exemptions, deductions, and preferences.

Upper-middle and middle-income taxpayers are increasingly finding themselves subject to the AMT for two reasons. First, while the regular income tax is indexed for inflation, the AMT is not. Second, recent income tax rate reductions have narrowed the differences between regular and AMT tax liabilities.

According to CBO, until 2000, less than 1% of taxpayers paid AMT in any year. In 2001, 2003, and 2006, Congress enacted temporary increases in the AMT exemption amounts in order to mitigate the AMT’s increasing impact on middle-income taxpayers. However, if AMT relief had not been extended beyond 2006, in 2007 24 million taxpayers would have been subject to the AMT.

The most contentious issue during consideration of the AMT patch was whether to follow the new PAYGO rules and offset the bill's costs.

JCT Background on the AMT
CRS Report: Modifying the AMT
CRS Report: The Alternative Minimum Tax for Individuals: Legislative Initiatives in the 110th Congress
CBO article on AMT in Budget and Economic Outlook, see pages 88-89

Nov 6, 2007: HR 3996 reported by Committee on Ways and Means. H.Rept. 110-431

The estate and gift tax is a high-profile public policy issue that is widely misunderstood.  The estate and gift tax is a minor slice of the revenue pie, accounting for only 1% of Federal revenues. Because of the estate and gift tax “exemption,” as well as various deductions, the tax impacts only a tiny percentage of Americans. For example, only 2% of all deaths in the United States. in tax year 2001 resulted in estate tax liability; in 2008, only 0.5% of estates are taxed, due to the increasing exemption.

The estate tax is applied when property is transferred at death. After deductions and exemptions, the remaining amount is subject to graduated rates of taxation up to 45% as estate size increases. An unlimited marital deduction is allowed for property transferred to a surviving spouse. Other allowable deductions include charitable contributions and estate administration expenses. In addition, the so-called unified credit exempts the first $2 million of an estate from tax. This is the primary reason why the estate tax impacts only a tiny fraction of the estates in the nation. Under current law, the $2 million exemption will increase to $3.5 million in 2009, and the estate tax will be fully repealed in 2010, but then bounces back in 2011.

The Federal gift tax operates in conjunction with the estate tax to prevent people from shielding their property from estate taxes by making gifts to heirs prior to death. Each year individuals can make gifts of $12,000 to as many individual recipients as they wish, without being subject to the gift tax. However, any amount in excess of this per-person gift limit is applied to a lifetime gift exclusion amount of $1 million. At time of death, the cumulative amount of gift tax exclusion used by the decedent reduces the estate tax exemption. In this way, the gift tax operates in a unified manner with the estate tax.
CRS: Economic Issues Surrounding the Estate and Gift Tax
CRS: Estate and Gift Taxes--Economic Issues
CRS: Asset Distribution of Taxable Estates

Deficit neutral $4.8 billion small business tax relief package to accompany the minimum wage increase. In February, both the House and Senate approved bills containing small business tax benefits (an amended version of HR 2 in the Senate and HR 976 in the House), then in mid-March folded the tax provisions into their respective versions of HR 1591, the FY 07 Supplemental Appropriations Bill. Congress passed a conference report but the President vetoed the due to Iraq-related provisions. On May 24, the House and Senate approved a modified supplemental, containing the same tax provisions and the President signed the bill on May 25, 2007.

Feb 13, 2007: CBO Cost Estimate of HR 976 as reported

Feb 26, 2007: Summary of HR 976 (House-passed) providing $1.3 billion of small business tax relief

Legislation making corrections to most major tax laws enacted since 1998.
Joint Tax Committee explanation of provisions
Senate Finance Committee description of provisions

Pension Protection Technical Corrections Act of 2007 (S. 1974) - Amends the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code, as amended by the Pension Protection Act of 2006, to make changes regarding defined benefit pension plans.

Creates " a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive."
(Fact Sheet)