Daily Tax Update - March 14, 2006

TREASURY HOSTS TAX RELIEF SYMPOSIUM:
Today, Treasury Secretary John Snow hosted a symposium entitled, "Investing in America’s Future – Preserving the Lower Tax Rates on Capital Gains and Dividends". Several economic advisors and economists appeared at the symposium. Snow said, "President Bush recognized that something needed to be done; a more favorable climate was needed to encourage capital investment and spur job growth. With the enactment of the Jobs and Growth Act of 2003, the U.S. economy made a remarkable turn-around. From capital investment suffering nine consecutive months of decline, businesses took advantage of the much-needed incentives and almost overnight began investing more.  And since that time, almost five million new jobs have been created. Today we have brought together a remarkable group of experts that work both in and out of the Administration to discuss how sound tax policy leads to a strong economy.  It is our intent that the discussions here today will encourage members of Congress to move forward in making the President's tax relief permanent."

  • The Treasury Department also released a report in conjunction with today’s symposium titled "The Economic Effects of Cutting Dividend and Capital Gains Taxes in 2003."
  • The document can be accessed here.  
  • A recent White Paper published in Tax Notes by Mihir A. Desai, an economist at Harvard Business School, offers suggestions for reforming the taxation of corporate capital gains, which can be accessed here.  

TAX BILL INTRODUCED MARCH 13:

  • S. 2401 sponsored by Sen. Charles Grassley (R-IA) would extend certain energy tax incentives.

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