Daily Tax Update - December 18, 2007

RANGEL SAYS HE COULD SUPPORT AMT PATCH WITHOUT OFFSETS:  Today, House Ways and Means Committee Chairman Charles Rangel (D-NY) said that he would rather pass an alternative minimum tax patch without offsets than see 21 million new taxpayers hit with the tax. Rangel said that while he agreed with the House Democratic Blue Dogs that an AMT patch should comply with “pay as you go” rules that require any tax cuts to be offset, he did not want to see more taxpayers fall under the AMT this year. Rangel added, “And I agree with them 100 percent except I don't think the voters would understand the problem and so at the present time…I would rather see the people not hit by the AMT and then come back and fight again for pay-go and to close the loopholes and to pay for the AMT, probably with the extenders.”

  • Today, Senate Majority Leader Harry Reid (D-NV) agreed to hold a vote on an alternative minimum tax patch that is fully offset. Reid said, “We're going to try to do a vote” on a fully offset AMT bill. However, Reid acknowledged that getting the new version through the Senate would be “a little harder.” This morning, House Majority Leader Steny Hoyer (D-MD) was asked if the House would pass an AMT patch before leaving for the year. Hoyer said, “maybe.”

TAX BILLS INTRODUCED DECEMBER 17TH:
H.R.4750: To amend the Internal Revenue Code of 1986 to exclude from gross income any enlistment, accession, reenlistment, retention, or incentive bonus paid to a member of the Armed Forces and to amend title 37, United States Code, to require the Secretary of Defense to continue to pay to a member of the Armed Forces who is retired or separated from the Armed Forces due to a combat-related injury certain bonuses that the member was entitled to before the retirement or separation and would continue to be entitled to if the member was not retired or separated.
Sponsor: Rep King, Peter T. [NY-3] (introduced 12/17/2007)      Cosponsors (None)

H.R.4752: To amend the Internal Revenue Code of 1986 to eliminate the limitation on the foreign earned income exclusion, and for other purposes.
Sponsor: Rep Meeks, Gregory W. [NY-6] (introduced 12/17/2007)      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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