Just read an excellent update on the new bill that passed on 8/10/2010 in the House, still subject to Senate vote.
Medicaid / Education funding for states passed
Continual erosion of ability to get foreign tax credits for multinationals or even taxpayers with multiple foreign corps. Foreign tax credits prevent the double taxation of US and foreign taxes. For example if your US corp owns a UK corp, that US corp may have to pay taxes on the same UK income in both US and UK – which is double taxation. US allows a credit for foreign taxes paid subject to complex sourcing of income rules. There was some liberality in allocating income on transactions and other baskets of income (interest, business, dividend) income that made these credits possible. Now you can’t do that after 12/31/2010, which would limit the deductibility of some of these foreign tax credits.
The advanced earned income tax credit is now no longer available for lowest earning taxpayers.
The 80/20 foreign sourcing rules to exempt foreign income of US or even foreign taxpayers is now also removed. This would impede some US taxpayers from owning foreign businesses. In essence it’s a tax on international trade.