Daily Tax Update - November 18, 2009

SENATE HEALTH CARE DEBATE TIMETABLE DELAYED: The Senate is unlikely to take up its health care reform bill until next week while awaiting the CBO cost estimates. Senate Majority Leader Harry Reid said yesterday that he is “cautiously optimistic” that he would be able to get the 60 votes needed to proceed to the bill. Reid said, “We’ll vote as soon as we can.” Regarding the possibility of a weekend vote, Reid added, “I certainly hope not. We’ll have to see.”

• Finance member Sen. Jay Rockefeller downplayed the possibility of using the reconciliation process to get a bill passed.  Rockefeller said, “Reconciliation is a nonstarter. It doesn’t work...It opens itself up to an endless, unstoppable number of amendments, which they will have lined up, 800 amendments, whatever it is.”

WAYS AND MEANS DEMOCRATS WORK FOR ONE-YEAR ESTATE TAX EXTENSION: Today, House Ways and Means Democrats agreed to push for a one-year extension of the current estate tax rate and exemption level. Select Revenue Measures Subcommittee Chairman Richard Neal said the legislation also would tie a permanent estate tax fix to underlying tax reform in 2010. There is no timetable for action in the House and it is unclear if the estate tax extension provision will be considered separately or part of another bill.

DEMOCRATS SEEKING SUPPORT FOR STOCK-TRADING TAX PROPOSAL: Today, several House Democrats circulated a “Dear Colleague” letter requesting support for their plan that would impose a new tax on stock transactions to fund a highway and jobs bill. The proposed plan would impose a 0.25-percent tax on all stock trades; a 0.02 percent tax on futures, swaps and credit default swaps; and a tax on options at the rate of the underlying asset. The revenue would be used to fund highway and infrastructure programs and a jobs initiative.

TAX BILLS INTRODUCED NOVEMBER 17^TH:
H.R.4085: To amend the Internal Revenue Code of 1986 to allow an investment credit for property used to fabricate solar energy property, and for other purposes.
Sponsor: Rep Thompson, Mike [CA-1] (introduced 11/17/2009)      Cosponsors (14)

H.R.4090: To amend the Internal Revenue Code of 1986 to modify the rate of the excise tax on investment income of private foundations, and for other purposes.
Sponsor: Rep Davis, Danny K. [IL-7] (introduced 11/17/2009)      Cosponsors (2)

S.2783: A bill to amend the Internal Revenue Code of 1986 to provide incentives for used oil re-refining, and for other purposes.
Sponsor: Sen Bayh, Evan [IN] (introduced 11/17/2009)      Cosponsors (2)

S.2784: A bill to amend the Internal Revenue Code of 1986 to permanently extend the estate tax as in effect in 2009, and for other purposes.
Sponsor: Sen Carper, Thomas R. [DE] (introduced 11/17/2009)      Cosponsors (1)

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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