Daily Tax Update - September 18, 2008

UNFINISHED CONGRESSIONAL BUSINESS AND ECONOMIC WOES MAY FORCE LAME DUCK SESSION:  Congress may have to return for a lame-duck session in November due to unfinished action on the energy and economic stimulus bills, as well as disarray in the financial sectors. Congress also has to act on a continuing resolution to fund the government before adjourning. The target adjournment date is September 26^th. 

• Senate Majority Leader Harry Reid said yesterday that he would keep the Senate in pro forma session in order for the Banking and Finance Committees to hold hearings on the government bailouts of the financial firms. Reid said, “If there is a need for us to come back, we stand ready and willing to do that.”
• Today, Reid added, “The adjournment date is next Friday. Everybody who holds anything up must be very careful that they're not holding up getting out of here on the time that we should.” Reid added, “Every little bit of time that we don't have an agreement to move forward on legislation makes it more apparent we're going to have to be here Friday, maybe Saturday, and certainly after the adjournment date.”  
• Regarding another economic stimulus package, House Speaker Nancy Pelosi said today, “We [would] like to have a stimulus package but our main focus is on the continuing resolution.” Pelosi added, “Let's face it. We can only have a stimulus package if the president is willing to sign one. We'll see what we can do in the CR on some of these issues and we will go from there."
• Today, President Bush said, “American people are concerned about the situation in our financial markets and our economy and I share their concerns.”  The President added, “In recent weeks, the federal government has taken extraordinary measures to address the challenges confronting our financial markets. We've taken control of Fannie Mae and Freddie Mac -- the home finance agencies -- to help promote market stability and to ensure they can continue to play a role in helping our housing market recover. This week, the Federal Reserve acted to prevent the disorderly failure of the insurance company AIG -- a development that could have caused a severe disruption in our financial markets and threatened other sectors of the economy. Yesterday, the Security and Exchange Commission took action to strengthen investor protections and step up its enforcement actions against illegal market manipulation. Last night, the Federal Reserve, in coordination with central banks around the world, took a substantial step to provide additional liquidity to the US financial system. These actions are necessary, and they're important. And the markets are adjusting to them. Our financial markets continue to deal with serious challenges. As our recent actions demonstrate, my administration is focused on meeting these challenges. The American people can be sure we will continue to act to strengthen and stabilize our financial markets and improve investor confidence.”

TAX BILLS INTRODUCED SEPTEMBER 17^TH:
H.R.6918: To amend the Internal Revenue Code of 1986 to allow individuals a credit against income tax for expenses paid or incurred by reason of a mandatory evacuation.
Sponsor: Rep Boustany, Charles W., Jr. [LA-7] (introduced 9/17/2008)      Cosponsors (None)

S.3506: A bill to amend the Internal Revenue Code of 1986 to increase the credit for purchase of vehicles fueled by natural gas or liquefied natural gas and to amend the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users to reauthorize the Clean School Bus Program of the Environmental Protection Agency.
Sponsor: Sen Obama, Barack [IL] (introduced 9/17/2008)      Cosponsors (None)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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