Daily Tax Update - January 30, 2007

SENATE APPROVES CLOTURE MOTION ON MINIMUM WAGE/TAX PACKAGE: Today, the Senate secured the 60 votes needed (87-10 voted in support of cloture) to limit debate on a substitute amendment that would combine the $2.10 hourly minimum wage increase with an $8.3 billion package of small business tax incentives and revenue raisers. Previous efforts in the Senate to pass a stand alone minimum wage bill were unsuccessful. It is unclear when final passage of the bill in the Senate might occur.

  • Today, Senate Finance Committee Chairman Max Baucus (D-MT) said, "Today’s vote brings America’s workers one step closer to the wage increase they deserve.  Once the Senate approves this minimum wage bill, I’m confident we’ll work out an agreement between the Senate and the House to move it into law.  Even though we’re taking different paths to passing legislation, we’re all working for the same thing: a fairer wage for America’s workers.  I believe that at the same time, we can and we must help small businesses that employ minimum wage workers, too.  The goal now must be to get this wage increase on the ground for workers who need it."
  • House Democratic leaders and the Chairman of the House Ways and Means Committee oppose a minimum wage bill that is paired with the small business tax breaks. Today, House Majority Whip Steny Hoyer (D-MD) said, "We've not worked out an agreement with the Senate. The House wants to see a clean bill passed and signed by the President."

SUPREME COURT DOCUMENTS AVAILABLE FOR 2 TAX CASES: Certain documents relating to two tax cases that are being appealed to the U.S. Supreme Court are now available. Both cases, Coltec Industries, Inc. v. United States, and Dow Chemical v. United States, involve the economic substance doctrine. The documents that are available include the Taxpayer's Certiorari Petition, Government's Brief in Opposition, Taxpayer's Reply Brief, and Amicus Briefs in Support of the Taxpayer: