Congress considers ending Savings Bond tax deferral
Friday, February 26th, 2010
Categorized as: Savings Bond news • Savings Bond taxes
According to an article by Frank Norris in today’s New York Times, In Tax Law, an Overdue Overhaul a Step, With Miles to Go, a bill introduced this week, called the Bipartisan Tax Fairness and Simplification Act of 2010 includes a provision to end the ability to defer taxes on U.S. Savings Bond interest.
From the article:
They also want to do things that will hit home for some readers of this column, like taxing fringe benefits and no longer excluding income earned abroad by American citizens. They want to end the deferral of tax on income from United States savings bonds, and to get rid of the deduction for moving expenses.
The bill reflects preferences of the two senators. Mr. Gregg is worried about capital formation and about reducing tax reasons for capital to flow to areas that might be less productive. Mr. Wyden wants to preserve progressivity and to assure that the tax breaks that remain are available to all.