Daily Tax Update - January 23, 2007

PRESIDENT TO DELIVER STATE OF THE UNION ADDRESS TONIGHT: Tonight, President Bush is expected to focus on both domestic issues and his Iraq policy in his State of the Union address. 

  • As far as tax-related issues, the President is expected to propose providing a standard tax deduction for health insurance.  The President's proposal would provide a deduction of $7,500 for individuals and $15,000 for families regardless of whether they buy their own health insurance or receive medical coverage at work.  The President’s plan would also subject employer-sponsored health care benefits to taxation.
  •  Today, House Majority Leader Steny Hoyer (D-MD) commented on the President’s health insurance proposal and said that it would not make health insurance more affordable for the poor and uninsured.  Hoyer said, “A tax break is something that is intellectually interesting to them, [but] it makes no difference in their lives.  We have to see specifically what he offers, but hopefully it is not more of the same.”

TAX BILLS INTRODUCED JANUARY 22nd CAN BE ACCESSED VIA: http://www.steptoe.com/assets/attachments/2810.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.

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.