Conrad's budget aligns with Obama's priorities on tax cuts

Senate Banking Chairman Kent Conrad (D-N.D.) on Tuesday outlined his budget proposal that aligns closely to President Obama's budget when it comes to tax cuts. 

Conrad provides $780 billion in tax relief over the next 5 years that is largely aimed at the middle class. The proposal makes permanent tax breaks enacted by President George W. Bush for couples earning less than $250,000 and singles making less than $200,000, which means the 25, 28 and part of the 33 percent bracket are extended. The 10 percent bracket (created by Bush), the child tax credit, and the marriage penalty are also extended. 

Conrad's budget assumes that middle-class relief from the alternative minimum tax will be extended. The estate tax for 2009 is also extended for two years.

Recently expired tax provisions are extended through 2011, such as the research and development tax credit as well as several tax cuts aimed at individuals.

It also includes a reserve fund for additional tax relief and tax reform, which is expected to be taken up next year. 

Conrad is expected to markup his budget proposal on Wednesday.