Daily Tax Update - February 5, 2007

TREASURY RELEASES "BLUE BOOK": Today, President Bush released his $2.9 trillion budget for fiscal 2008. The Treasury Department also released the Administration's Fiscal Year 2008 revenue proposals, commonly referred to as the "Blue Book."

  • The Administration's FY 2008 budget includes measures to permanently extend the President's tax relief enacted in 2001 and 2003 at a cost of $1.6 trillion over 10 years. The budget also includes a one-year "patch" for the AMT. As part of Treasury's strategy to address the tax gap, the President's budget requests $11.095 billion in appropriations for the IRS to expand its enforcement activity and to continue improvements in taxpayer service. The President's proposal for a new standard deduction to make health insurance more affordable and a set of proposals to improve compliance with the U.S. tax system are also included.
  • Today, Senate Budget Chairman Kent Conrad (D-ND) said that the President’s budget plan "clings to the same misguided policies: costly tax cuts that primarily benefit the wealthiest, cuts in domestic priorities, and more fiscal irresponsibility."
  • The document can be accessed via: http://www.treas.gov/offices/tax-policy/library/bluebk07.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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