Daily Tax Update - February 27, 2006

TREASURY SECRETARY REITERATES SUPPORT FOR EXTENDING CAPITAL GAINS AND DIVIDENDS:
Today, in a speech, Treasury Secretary John Snow said that tax relief on capital gains and dividends should be extended to ensure that economic growth remains strong. Snow said, "There can be no question that we need to keep the tax rate on capital gains and dividends where it is; a tax increase would be a terrible mistake. While many factors contributed to the improved performance of the economy, the tax reductions on capital have been at the heart of the progress we have seen. Lower tax rates on individual income are important because, as the President says, they let the people make their own decisions about their own money – and individuals make better financial decisions than governments. " Snow added, "There is also a significant small-business component to lower marginal rates. Since small-business owners often file their business income on personal forms, lower marginal rates help this sector that creates two-thirds of the country's net new jobs."

  • The speech can be accessed here

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