Daily Tax Update - February 26, 2007

CONGRESS WILL BEGIN RECONCILIATION PROCESS FOR MINIMUM WAGE TAX PACKAGE : Congress returns from its week-long recess and will begin the process of reconciling the tax components of the House and Senate minimum wage bills. However, the timetable for when discussions will begin between the House and Senate conferees is uncertain. The House approved a $1.3 billion tax package (H.R. 976) while the Senate passed an $8 billion bill that contains several controversial revenue raisers, including limiting the annual amount that may be deferred under a nonqualified deferred compensation plan to the lesser of $1 million or the individual's average taxable compensation for the previous five years and modifying the effective date of provisions in the American Jobs Creation Act of 2004 governing sale-in, lease-out transactions.

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