Daily Tax Update - November 2, 2009

HOUSE DEMOCRATS WANT TO PASS HEALTH CARE REFORM BILL BY VETERANS DAY: House Democratic leaders are expected to unveil a manager’s amendment to the health care bill tomorrow that will contain several refinements in the hope of gathering additional support. Debate in the House is expected later this week and House Democrats want to get the bill passed by Veterans Day.

• House Education and Labor Committee Chairman George Miller said, “Unless there are glaring problems, I would expect the opportunity for amendments will be very limited, if at all.”
• Meanwhile, on the Senate side, Republican Senators are considering various tactics to slow down the debate on the Senate floor. It is unclear when the Senate will begin deliberating its bill. Republicans want to debate the bill at least four weeks on the Senate floor. Republican Senator John Cornyn said, “We’re going to need a significant amount of time in order to evaluate it and offer amendments. So, I think this is going to go on for a while.” Cornyn added, “You’re not going to be able to change the bill without 51 votes and we’ve got 40 Republicans, so it’s going to be more about educating the American people. So far, the most powerful political opposition that there’s been to these bills has been the voice of the American people.”

SUBCOMMITTEE SCHEDULES HEARING ON FOREIGN BANK ACCOUNT REPORTING AND TAX COMPLIANCE: On November 5th, the House Ways and Means Subcommittee on Select Revenue Measures will hold a hearing on foreign bank account reporting and related tax compliance issues. The hearing will focus on non-compliance by US taxpayers with foreign bank accounts, rules regarding foreign trusts with US beneficiaries, and certain US dividend equivalent payments to foreign persons to avoid US taxes. The hearing will also focus on recently introduced legislation, HR 3933, the Foreign Account Tax Compliance Act of 2009.

• In announcing the hearing, Subcommittee Chairman Richard Neal stated, “For many years, I have sought to crackdown on individuals and corporations that are abusing overseas tax havens. With billions of dollars in revenue being lost each year, strengthening our tax compliance efforts is essential. I strongly believe the Foreign Account Tax Compliance Act of 2009, introduced this week in the House by Chairman Rangel and myself, gives the Treasury Department the necessary tools it needs to get tough with those Americans hiding their assets overseas. I welcome the support for this bill offered by President Obama and Treasury Secretary Geithner, and look forward to working with them to turn this proposal into law. It is my hope that this hearing marks the beginning of a vigorous campaign by Congress and the Obama administration to end the practice of offshore tax avoidance by US citizens.”

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