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Increase the deduction for charitable contributions, and more money goes to the charities.
Excluding any change for inflation, the legislation would increase the deduction for couples filing jointly next year to $8,800.
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The bill would increase the deduction's value for a family to $24,000.
The legislation passed today -- which under an arcane budget rule would technically require re-enactment after five years -- would increase the standard deduction for married couples filing jointly, starting next year, so that it is twice the standard deduction for single taxpayers.
Starting then, the bill would gradually increase the standard deduction for couples so that it becomes twice the level for single people.
It would increase the standard deduction for all couples by an additional $500 in 2005, and by $250 for single filers.
The bill would also increase the standard deduction for all married couples.
It would gradually increase the standard deduction for couples, which this year is $7,350, until it is twice the one for single people, currently $4,400.
When fully phased in, Mr. Clinton's proposal would increase the standard deduction for two-income couples who file jointly by $2,150.
At least among politicians in Washington, he is receiving credit for proposals to reduce taxes on dividends and to increase the allowable deductions for investment losses, measures that have taken root with some Republican lawmakers and that may well blossom into breaks for investors next year.
An increase in the deduction for entrepreneurs' start-up expenses in 2010.
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