Senate Introduces Tax Relief Act of 2010

Summary:  Numerous tax breaks for both businesses and individuals expired at the end of 2009, and many others are scheduled to expire at the end of 2010. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, introduced on December 9, 2010, by Senate Majority Leader Harry Reid (D-NV), proposes extending these tax breaks for another two years, prevents reversion to a 55% estate tax, and includes several new tax breaks for individuals and businesses, including enhanced depreciation deductions for businesses. The attached Client Alert discusses details of the proposals, and compares the proposed rates with the rates that would occur if the tax breaks are allowed to expire.