Daily Tax Update - December 6, 2007

SENATE FAILS TO OBTAIN CLOTURE ON HOUSE AMT/EXTENDERS BILL:  Today, the Senate failed to secure the 60 votes needed to obtain cloture on the House-passed AMT patch/extenders bill. The vote fell 14 votes short necessary to begin debating the $81 billion revenue-neutral bill. Senate Majority Leader Harry Reid (D-NV) today sought unanimous consent to pass a one-year patch for the alternative minimum tax without offsets. The agreement did not address extenders which may have to wait until next year for Congressional action. Reid expressed hope that an agreement could be worked out on the AMT patch. Reid said, “I hope we can move to this. I'm a little suspect because we've been trying to work this out for some time now.” Today, Senate Finance Committee Chairman Max Baucus (D-MT) said, “We know we're going to fix this one way or the other. Stop the games. Let's get on with it and let's help do something for the American people.”

  • Today, House Majority Leader Steny Hoyer (D-MD) said that he would continue to insist that the $50 billion bill be fully offset. Hoyer said, “I have every intention of insisting that our AMT patch be paid for—and Speaker Pelosi has expressed her strong commitment to a fiscally neutral AMT bill, as well.”
  • House Ways and Means Committee Chairman Charles Rangel (D-NY) said today that he would introduce a new revenue-neutral bill addressing only the AMT patch and not the extenders. The Committee is expected to mark up the bill next week. Rangel said that his bill would the contain the revenue offset provision that would tax offshore deferred compensation, as well as other revenue offsets that have not yet been specified. Rangel said, “We're going to make certain we pay for it. We're certain there are enough pay-fors that the Senate has agreed to that we will be able to put together something that they will not have objections to.”

TAX BILLS INTRODUCED DECEMBER 5TH:
H.R.4293: To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for State and local, and foreign, real property taxes.
Sponsor: Rep Paul, Ron [TX-14] (introduced 12/5/2007)      Cosponsors (None)

H.R.4294: To amend the Internal Revenue Code of 1986 to reform the system of public financing for Presidential elections, and for other purposes.
Sponsor: Rep Price, David E. [NC-4] (introduced 12/5/2007)      Cosponsors (5)

H.R.4297: To amend the Internal Revenue Code of 1986 to extend certain expiring energy conservation provisions and to provide a tax credit for certain individuals using home heating oil.
Sponsor: Rep Shuster, Bill [PA-9] (introduced 12/5/2007)      Cosponsors (None)

S.2412 : A bill to amend the Internal Revenue Code of 1986 to reform the system of public financing for Presidential elections, and for other purposes.
Sponsor: Sen Feingold, Russell D. [WI] (introduced 12/5/2007)      Cosponsors (7)

 S.2416: A bill to amend the Internal Revenue Code of 1986 to repeal the alternative minimum tax on individuals and replace it with an alternative tax individuals may choose.
Sponsor: Sen DeMint, Jim [SC] (introduced 12/5/2007)      Cosponsors (None)

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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