Daily Tax Update - October 7, 2009

TIMETABLE FOR SENATE CONSIDERATION OF HEALTH CARE BILL DELAYED: The Senate Finance Committee will likely postpone voting on the health care reform bill until later this week or next week. The Finance bill then has to be merged into the version passed by the Health, Education, Labor and Pensions Committee. Therefore, action by the full Senate will probably not occur until the week after next. A Democratic leadership aide said, “We likely will not get to it until the week after next on the floor since the Finance Committee will likely not report the bill until later this week.”

• Several moderate Democrats want Senate Majority Leader Harry Reid to post the legislative text and new CBO scores 72 hours before the final Senate vote. Their letter to Reid stated, “Whether or not our constituents agree with the direction of the debate, many are frustrated and lacking accurate information on the emerging proposals in Congress. Without a doubt, reforming health care in America is one of the most monumental and far-reaching undertakings considered by this body in decades. We believe the American public's participation in this process is critical to our overall success of creating a bill that lowers health care costs and offers access to quality and affordable health care for all Americans.”
• Meanwhile, today a majority of the House Democrats, including more than half of the Democrats on the Ways and Means Committee, wrote to House Speaker Nancy Pelosi in opposition to the excise tax on high-value health insurance plans in the Finance plan. Their letter said that the tax on “Cadillac” plans would “impact regions with high health care costs in the short-term, and, in the long-term, inevitably extend to more and more middle-income Americans across the country.” 

TAX BILLS INTRODUCED OCTOBER 6^TH:
H.R.3724: To amend the Internal Revenue Code of 1986 to expand the tip tax credit to employers of cosmetologists and to promote tax compliance in the cosmetology sector.
Sponsor: Rep Berkley, Shelley [NV-1] (introduced 10/6/2009)      Cosponsors (9)

S.1754: A bill to amend the Internal Revenue Code of 1986 to provide for a standard home office deduction in the case of certain uses of the office.
Sponsor: Sen Boxer, Barbara [CA] (introduced 10/6/2009)      Cosponsors (3)

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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