Related Practices
Daily Tax Update - May 9, 2008
HOUSE PASSES HOUSING STIMULUS BILL: On May 8, the House passed an $11 billion housing stimulus tax package. The House bill would create a refundable tax credit of up to $7,500 for first-time home buyers, who would be required to repay the credit over the next 15 years in equal installments. The measure would also provide home owners who claim the standard deduction an additional deduction for state and local real property taxes. The deduction for single filers would be $350 and $700 for joint filers. The bill would also increase and modify the low-income housing tax credit and would allow for a temporary increase in mortgage revenue bonds.
- The bill is offset by mandating cost basis reporting by brokers for transactions involving publicly traded securities and by delaying the implementation date of a law that could trim tax costs for some multinational companies for one year.
FARM BILL CONFEREES REACH AN AGREEMENT: On May 8, lawmakers announced that they had completed a conference report for the farm bill. The bill includes a $1.4 billion dollar tax package consisting of incentives for agriculture, conservation, and renewable energy. The bill will fund the tax package by limiting Schedule F loss deductions for nonfarmers and by trimming ethanol production subsidies.
- Agriculture Secretary Ed Schafer responded to the news by stating that the farm bill “fails to include much needed reform and increases spending by nearly $20 billion...The President will veto this bill.” Today, Senator Tom Harkin (D-IA) countered by saying, “Like any compromise bill…this farm bill is far from perfect…It includes significant reforms, as well as these major advances. It deserves the President’s signature.”
- The farm bill conference report will reach the floor of both the House and Senate the week of May 12.
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STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.
