Congress passed the Iraq funding bill, which includes an increase in the minimum wage and related
Key provisions include:
- Expansion of the Work Opportunity Tax Credit for disabled veterans and others.
- An increase in the limit to $125,000 and the phaseout to $500,000 for 2007.
- Full tip credit allowed for businesses despite a minimum-wage increase.
- Simplified filing rules for certain family-owned businesses.
- S corp reforms such as elimination of gains from stock sales as an item of passive-investment income.
These tax breaks could be offset by revenue earned from raising the kiddie-tax limit from age 18 to 19 (or age 24 for full-time students).