Tax

Senate Democrats have introduced legislation to extend unemployment benefits, a 65 percent subsidy for COBRA health insurance for the unemployed, and a large set of tax breaks that expired at the end of last year.

The Senate’s latest stimulus effort, a “jobs bill” named the Hiring Incentives to Restore Employment Act, passed this week with a 70 to 28 margin.

Liberty Tax Service has reported a 10.2 percent increase in the total number of tax returns filed as of Feb. 15, 2010, and a 28.1 percent increase in revenue generated, a marked contrast with rival H&R Block.

The Senate Finance Committee held a hearing to discuss trade and tax issues relating to small business job creation.

Sen. Ron Wyden, D-Ore., and Judd Gregg, R-N.H., have introduced legislation to eliminate many of the exemptions, deductions, credits and other tax breaks in the Tax Code.

Lacking Congress’ ability to address problems with deficit spending, financially squeezed state legislatures across the country are considering desperate tax increases that would have been politically unthinkable just a few years ago.

H&R Block blamed the recession for a drop-off in tax filings so far this season.

The Senate approved a job creation bill Wednesday after 13 Republicans agreed to vote for the measure, which includes tax breaks for businesses that hire or retain employees.

The White House has published the health care reform package that President Obama plans to present to Republican and Democratic congressional leaders at the summit on Thursday.

New York State’s budget deficit and dysfunctional legislative process may prompt the government to withhold state income tax refunds, according to embattled Governor David Paterson.