Daily Tax Update - June 29, 2005

Unless the House and Senate highway reauthorization bill conferees can reach an agreement today, it will be necessary to pass the eighth extension of the highway funding programs. The current extension expires tomorrow. It appears that a tentative deal reached last week agreeing to a $286.5 billion funding level fell apart last night, partly because of objections from some of the conferees that all projects would be earmarked in the authorizing bill, prohibiting lawmakers from earmarking projects through the appropriations process.

  • Yesterday, Senate Minority Leader Harry Reid (D-NV) said that he would block any efforts to convene a conference on the energy bill until after agreement is reached on the highway reauthorization bill. Reid wants to ensure adequate participation by Democrats in the energy bill conference discussions.


  • H.R. 3095 sponsored by Rep. Steve King (R-IA) would clarify that wages paid to unauthorized aliens may not be deducted from gross income.
  • H.R. 3098 sponsored by Rep. Paul Ryan (R-WI) would allow a deduction for premiums on mortgage insurance.
  • S. 1319 sponsored by Sen. Blanche Lincoln (D-AR) would improve the operation of employee stock ownership plans.
  • S. 1321 sponsored by Sen. Rick Santorum (R-PA) would repeal the excise tax on telephone and other communications.

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