Nothing filled the closing days of the 102nd Congress with as much intrigue as the tax bill that would create enterprise zones, which President Bush favors, but also raise about $27 billion in new revenues to offset its tax cuts. Bush is under pressure to veto it so as to honor his new pledge not to raise taxes "ever, ever." No one at the White House, however, is raising a fuss about other tax hikes. Buried in the comprehensive energy bill are $2 billion in new taxes--including higher excise taxes on ozone-depleting chemicals, increased withholding on gambling winnings, a crackdown on home sellers who fail to report income from interest and tax refunds, and caps on deductions for employee parking perks and some travel expenses.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.