Daily Tax Update - March 16, 2017: House Budget Committee Holds Markup of American Health Care Act

Join us!  We cordially invite you to attend Steptoe’s cocktail reception during the 2017 Tax Executives Institute Midyear Conference on Monday, March 20 from 6:00 p.m. – 8:00 p.m. at the Grand Hyatt Hotel in Washington, DC.  The reception will be held in the Declaration AB room.  Please RSVP here if you plan to attend.

House Budget Committee Holds Markup of American Health Care Act:  Today, the House Budget Committee marked up and passed the reconciliation submissions with respect to the American Health Care Act, the legislation meant to replace the Affordable Care Act.  Chairman Diane Black (R-TN) delivered the opening statement.  The Budget Committee vote was 19-17, with three Republicans - Reps. Gary Palmer (R-AL), Dave Brat (R-VA), and Mark Sanford (R-SC) - joining the committee’s Democrats in voting against the proposed law.  Rep. Palmer said he voted against the legislation because “the current bill does not answer this crisis…[and] the promises of changes in the future are insufficient.”

Budget Proposal Includes $239 Million Cut for IRS:  In his budget “blueprint” released today, President Trump proposed a $239 million funding reduction from fiscal 2017 levels for the IRS.  The proposal requests $12.1 billion in discretionary resources for the Department of Treasury’s domestic programs, a $519 million or 4.1% decrease from 2017 levels.

Miscellaneous Guidance:
Revenue Ruling 2017-08 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate.  These rates are determined as prescribed by section 1274.