Prized Parts of Tax Plan May Get Ax --- `Everything's on the Table' As Republicans Seek Room For Bush Dividend Measure
WASHINGTON -- Some of the most popular provisions in President Bush's tax-cut package could get whittled down as Senate Republicans try to make room for the White House's top priority: repealing the tax that individuals pay on corporate dividends.</br></br>One benefit in Mr. Bush's proposal would boost the child tax credit to $1,000 from the current $600. The jump is expensive -- nearly $90 billion through 2013, official estimates show. By limiting the increase to one year, as some Senate tax writers are now considering, the price tag would shrivel to about $15 billion.</br></br>Another provision Republicans may target would triple the expensing limit for small businesses. The annual cap today is $25,000; under Mr. Bush's proposal, it would immediately rise to $75,000, carrying an estimated cost of about $29 billion over the next 10 years. Republicans are eyeing cheaper options, such as only doubling the cap and letting it to expire after a few years.</br></br>The changes are necessary if the Senate is to stay within its budget limit of a $350 billion, 10-year tax-cut package. If tax writers can find ways to offset extra costs, the final figure could grow to $400 billion.</br></br>Despite the $350 billion lid -- set by Republican moderates who worry about the ballooning federal deficit -- Mr. Bush wants Congress to approve the dividend-tax repeal that is the centerpiece of his economic-growth plan. That package, unveiled in January, has a 10-year price tag of $725 billion, more than half for dividend-tax relief.