Daily Tax Update - April 16, 2007

SENATE FINANCE COMMITTEE HEARINGS THIS WEEK:  The Senate Finance Committee will hold a couple hearings this week:

  • On Wednesday, the Finance Committee will hold a hearing examining the Administration's plan for reducing the tax gap.  Scheduled to testify are Treasury Secretary Henry M. Paulson, Jr., Treasury Assistant Secretary for Tax Policy Eric Solomon, and IRS Commissioner Mark W. Everson.
  • A Finance Committee hearing will be held on Thursday on tax incentives for alternative fuels and vehicles.

HOUSE WAYS AND MEANS HEARINGS THIS WEEK:  The House will return from its recess, and on Thursday, the Select Revenue Measures Subcommittee will continue a series of hearings on energy and tax policy.  That hearing will focus on the utility of tax incentives in encouraging the further development, expanded production, and increased utilization of clean and renewable energy.

  • In announcing the hearing, Chairman Richard E. Neal said, “We need to know which current tax incentives are working and which are not so that we can take that knowledge and apply it to future policy decisions.”

WYDEN, EMANUEL TO REINTRODUCE FLAT TAX MEASURE:  Sen. Ron Wyden (D-OR) and Rep. Rahm Emanuel (D-IL) today announced plans to reintroduce the Fair Flat Tax Act, which would simplify tax rates, end a number of tax preferences, eliminate disparity between wage and investment income, and eliminate the alternative minimum tax.

  • The proposal, which was introduced in the last Congress, would provide a tax cut for Americans making up to approximately $100,000 a year, while calling on the most affluent to pay more, according to a Wyden press release.
  •  In a conference call with reporters, Wyden highlighted features of the plan that (i) pares the number of individual brackets down to three, while retaining major deductions like those for mortgage interest and charitable contributions, and (ii) installs a single rate for corporations.  According to Wyden, the plan is revenue neutral. 

2007 NATIONAL “TAX DAY EVE” PRESS CONFERENCE:  Business and government groups, including the Office of Management and Budget, Americans for Tax Reform, and Citizens Against Government Waste, held a press conference today at the National Press Club about Americans' tax burden and the state of government spending.  The groups discussed federal tax reform efforts, international competitiveness, and transparency in government spending.

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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