Congress is unlikely to approve a significant tax cut for U.S. businesses this year, the chairman of the Senate Finance Committee said on Tuesday.
Because of a shortage of funds following the recently passed $1.35 billion tax cut, “any business tax provision this year is going to be modest,” Sen. Max Baucus, a Montana Democrat, told the National Association of Manufacturers. “The money is not there.”
Bush administration officials have indicated they would seek an additional tax cut for businesses on the heals of a $1.3 trillion tax cut for individuals approved earlier this spring.
But Baucus told the trade organization the timing was wrong. “You kind of got stuck … there’s just not a lot left.”
The most businesses can hope for is some modest additional tax relief, said Baucus, adding, “I don’t think there will be another significant tax bill this year.”