Congress Approves Tax Cut Extensions

Legislation also averts scheduled funding reduction for Medicare doctors WASHINGTON, D.C. -- The U.S. Congress approved legislation on December 9 that will extend numerous tax cut provisions, while also averting a scheduled payment reduction for doctors who provide care to seniors enrolled in Medicare. H.R. 6111, the Tax Relief and Health Care Act of 2006, was approved by the Senate, following passage by the House of Representatives. The legislation, among many provisions, extends key tax incentives, including a deduction for higher education expenses, an improved research and development credit, and a tax deduction for classroom expenses incurred by teachers. "I'm pleased that Congress has been able to pass legislation that provides critically important tax deductions for our teachers, higher education, and research and development," said Kyl. "I'd be remiss however, if I did not note my discontent with Democrats unwillingness to extend these tax cut provisions earlier this year simply because they were driven by political motives." The legislation also prevents a scheduled five percent cut in Medicare physician payments for 2007, which will help ensure beneficiaries' access to quality healthcare. "Medicare relies on an antiquated payment system that does not appropriately reflect the cost of providing care," said Kyl. "Over the next nine years, it is estimated that projected physician payment cuts will total 37 percent, and in Arizona alone, impending cuts will result in a loss of over $3 billion to Medicare physicians by 2015. This reduction not only endangers the quality of care beneficiaries will receive, but it will also greatly reduce the number of available doctors to our seniors. That is why I am also pleased that this bill will prevent this scheduled reduction." The bill also establishes a grant program to help develop vaccines against Valley Fever. Valley Fever is an infection endemic to the desert Southwest. On occasion, Valley Fever results in a serious, widespread infection involving the lungs, bones, brain, and other parts of the body. Currently, there is no Valley Fever vaccine. The bill will now be sent to the President for his signature.