Daily Tax Update - November 7, 2008

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS NOVEMBER 17^TH.

DEMOCRATS CONSIDERING $100 BILLION STIMULUS PLAN:  Congressional Democrats are working on a $100 billion stimulus package that could be considered in a lame-duck session later this month. The package is expected to contain infrastructure improvement projects to help create jobs, an extension of unemployment benefits, funds for food stamps and assistance to state governments. 

• Passage of another stimulus plan this year is contingent upon the Bush Administration’s support. Yesterday, the White House Press Secretary said, “We've long said that the package that they have put forward so far was not something we thought that we could support.”
• Rep. Chris Van Hollen (D-MD) said, “Substantial parts, if not all, of his tax-relief proposals will be passed as part of an economic recovery plan soon after the new Congress convenes in January.” Van Hollen added, “This was a major part of the campaign. It got a lot of attention...Acting now is the best decision from both a policy perspective and a political perspective." 
• Today, President-elect Obama called on Congress to pass a new stimulus package “sooner rather than later.” Obama added, “If it does not get done in a lame duck session, it will be the first thing I get done as president of the United States.” 

ADDITIONAL VACANCIES ON TAX-WRITING COMMITTEES: With the acceptance by House Ways and Means Committee member Rahm Emanuel (D-IL) as President-elect Obama’s chief of staff and the defeat of Senate Finance Committee Member Gordon Smith (R-OR), the tax writing committees will have additional seats to fill for the 111^th Congress.

JOINT TAX COMMITTEE RELEASES TAX EXPENDITURES REPORT:  The Joint Committee on Taxation (JCT) has released a report, Estimates of Federal Tax Expenditures for Fiscal Years 2008-2012.

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.

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.

• Learn more about the members of the tax practice group.