MyWay.com
December 20, 2006
by Associated Press

President Bush on Wednesday revived some 20 tax breaks, extended trade benefits for developing countries and protected doctors from a big cut in Medicare payments by signing sweeping tax and trade legislation.

The bill is a patchwork of must-do items that were left for the lame duck Congress. It was bundled together and passed by the House and Senate just before adjourning earlier this month.

"This is a good piece of pro-growth legislation," said Bush, just before putting his signature to the legislation at a White House ceremony.

Republican budget hawks bridled at the measure's approximately $40 billion price tag, and textile state senators objected to trade provisions benefiting Haiti.

The bill would:

_Extend through the end of next year a deduction for research and development initiatives.

_Renew a deduction of up to $4,000 for higher education costs.

_Give tax breaks for teachers who pay for supplies out of their own pockets.

_Let taxpayers deduct state and local sales taxes instead of state and local income taxes, a provision that primarily benefits those in states with no income taxes.

_Open up 8.3 million acres in the Gulf of Mexico to oil and gas drilling, and offer a dozen credits promoting alternative and efficient uses of energy.

_Prevent a 5 percent cut in Medicare payments to doctors from taking effect on Jan. 1.

_Renew, with increased federal contributions, a program to help clean up abandoned coal mines and provide health care for miners who worked for companies that have gone out of business.

_Permanently normalize trade with Vietnam and extend trade benefits for four Andean nations, sub-Saharan African countries and Haiti.

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The bill is H.R. 6111.

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