Daily Tax Update - January 5, 2007

HOUSE ADOPTS NEW BUDGET RULES: Today, the House adopted, by a vote of 280-152, new budget rules, including a new "pay as you go" provision, which requires that all new entitlement spending or tax cuts must be accompanied by tax or spending offsets. The pay-go provision can be waived with a supermajority vote. House Budget Committee Chairman John Spratt (D-SC) said that even though the pay-go is a House rule and not law, it was better than the status quo. Spratt said, "You’ve got to offset those tax cuts. And if you want to enhance an entitlement, you’ve got to pay for it."

  • The Senate already has a pay-go rule, but it spares spending and tax cuts set by the annual budget resolution.

TAX BILLS INTRODUCED JANUARY 4TH CAN BE ACCESSED VIA:
http://www.steptoe.com/assets/attachments/2775.pdf

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.

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