Daily Tax Update - July 14, 2006

GRASSLEY WANTS TIMETABLE FOR TAX REFORM:
During yesterday's confirmation hearing of Eric Solomon as Treasury Assistant Secretary for Tax Policy, Senate Finance Committee Chairman Charles Grassley (R-IA) asked the nominee about the Administration's timetable for moving tax reform. Although the Administration has been reviewing the President's Advisory Panel on Federal Tax Reform's final recommendations released in November, a specific plan has not been endorsed. Solomon indicated that he would like to confer with the new Treasury Secretary before suggesting a timetable. Solomon said that reforming the tax code was the "foremost challenge" to Congress. Grassley suggested that he might delay a final vote on a Treasury nominee until a "date certain" for moving tax reform is announced. Grassley also said that the committee would hold a hearing on tax reform before the August recess and additional hearings in the fall.

  • Grassley said, "I think this committee has a real interest in tax reform, and if the administration will show leadership we can make real and significant changes."

TAX BILLS INTRODUCED JULY 13:

  • H.R. 5807 sponsored by Rep. Anthony Weiner (D-NY) would provide middle class tax relief, impose a surtax for families with incomes over $1,000,000.
  • S. 3654 sponsored by Sen. James Jeffords (I-VT) would allow a credit against income tax, or, in the alternative, a special depreciation allowance, for reuse and recycling property, provide for tax-exempt financing of recycling equipment.
  • S. 3655 sponsored by Sen. Larry Craig (R-ID) would allow individuals eligible for veterans health benefits to contribute to health savings accounts.
  • S. 3657 sponsored by Sen. Rick Santorum (R-PA) would allow bonds guaranteed by the Federal home loan banks to be treated as tax exempt bonds.

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.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving.  Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them.  Read  more information on Steptoe's tax practice