Daily Tax Update - October 23, 2009

SENATE MAY INCLUDE PUBLIC OPTION PLAN WITH OPT-OUT PROVISION FOR STATES: Senate Democrats are considering including a plan that would allow the federal government to sell health insurance in competition with private industry. The provision would permit individual states to opt -out of the system if they choose.

• Democratic Senator Charles Schumer said reaction to the modified public option provision allowing states to opt-out has been favorable. Schumer said, “Liberals live with it. Moderates live with it. It's in the middle.” Moderate Republican Sen. Olympia Snowe countered that the proposal was “just another public option.” Snowe added, “I do not support it.” 
• Meanwhile, House Speaker Nancy Pelosi said that despite optimism yesterday that they would have 218 votes to pass a “robust public option” plan in the House, there may not be a sufficient number of supporters at this time. Pelosi added, “The robust public option is in my view a preferred way to go. It's not the only way to go and at the end of the day we will have a public option in our legislation.” 
• President Obama said yesterday that he prefers the “trigger” option plan advocated by Sen. Olympia Snowe. That “trigger” plan would allow a government-run insurance plan to take effect if private insurers fail to expand coverage quickly enough.

TAX BILLS INTRODUCED OCTOBER 22nd:

H.R.3898: To amend the Internal Revenue Code of 1986 to extend the temporary increase in limitations on expensing of certain depreciable business assets.
Sponsor: Rep Kratovil, Frank, Jr. [MD-1] (introduced 10/22/2009) Cosponsors (None)

H.R.3901: To amend the Internal Revenue Code of 1986 to enhance the administration of, and reduce fraud related to, the first-time homebuyer tax credit, and for other purposes.
Sponsor: Rep Lewis, John [GA-5] (introduced 10/22/2009) Cosponsors (4)

H.R.3902: To amend the Internal Revenue Code of 1986 to extend the first-time homebuyer tax credit and to eliminate the first-time homebuyer requirement and increase the adjusted gross income limitations with respect to such credit, and for other purposes.
Sponsor: Rep Heller, Dean [NV-2] (introduced 10/22/2009)

H.R.3903: To amend the Internal Revenue Code of 1986 to provide a partial exclusion of interest from the gross income of individuals, to increase retirement plan contribution limitations, and to temporarily suspend minimum distribution requirements for certain defined contribution plans.
Sponsor: Rep Rehberg, Denny [MT] (introduced 10/22/2009) Cosponsors (None)

H.R.3905: To amend the Internal Revenue Code of 1986 to repeal the 1-year termination of the estate tax, to increase the estate and gift tax unified credit, and to coordinate a reduction in the maximum rate of tax with a phaseout of the deduction for State death taxes.
Sponsor: Rep Berkley, Shelley [NV-1] (introduced 10/22/2009) Cosponsors (3)

H.R.3908: To amend the Internal Revenue Code of 1986 to provide the work opportunity tax credit with respect to a designated family member of a veteran with a service-connected disability if the veteran is unable to work.
Sponsor: Rep Halvorson, Deborah L. [IL-11] (introduced 10/22/2009) Cosponsors (None)

H.R.3916: To amend the Internal Revenue Code of 1986 to permanently extend and modify the section 45 credit for refined coal from steel industry fuel, and for other purposes.
Sponsor: Rep Schwartz, Allyson Y. [PA-13] (introduced 10/22/2009) Cosponsors (1)

H.R.3918: To amend the Internal Revenue Code of 1986 to provide a tax credit for qualified distributed thermal energy storage property, and for other purposes.
Sponsor: Rep Thompson, Mike [CA-1] (introduced 10/22/2009) Cosponsors (5)

S.1835: A bill to amend the Internal Revenue Code of 1986 to allow 5-year carryback of operating losses, and for other purposes.
Sponsor: Sen Brownback, Sam [KS] (introduced 10/22/2009) Cosponsors (None)

S.1861: A bill to amend the Internal Revenue Code of 1986 to provide a 2-year extension of the increased rehabilitation credit for structures in the Gulf Opportunity Zone.
Sponsor: Sen Landrieu, Mary L. [LA] (introduced 10/22/2009) Cosponsors (2)

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