Daily Tax Update - March 14, 2007

WAYS AND MEANS COMMITTEE HEARS TESTIMONY ON REVENUE RAISERS IN SENATE MINIMUM WAGE BILLToday, the House Ways and Means Committee heard from various private sector witnesses on the impact of several of the revenue raisers in the Senate-passed minimum wage bill.

  • The President of the Equipment Leasing and Finance Association testified that “The Senate proposal to make Section 470 retroactively applicable to transactions entered into prior to March 12, 2004, coupled with a current change in the GAAP treatment of leveraged leases, could have potentially significant adverse financial statement consequences to many U.S. corporations.”
  • The Vice President of Benefits from PepsiCo, Inc. discussed the executive compensation provisions.  His statement said, “Prior to any new legislation, we would like to see final guidance on current 409A regulations.  The impact of the recently enacted sweeping new reforms of 409A is still being absorbed by most companies.  Enacting new changes before we know how the current rules work seems premature.”
  • A representative on behalf of the Securities Industry and Financial Markets Association testified in opposition to Section 230 of the Senate-passed version of H.R. 2, which would “reverse settled law by changing the taxation of ‘contingent convertible’ debt instruments.”
  • The testimony can be accessed via: http://waysandmeans.house.gov/hearings.asp?formmode=detail&hearing=538


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