Daily Tax Update - January 28, 2008

PRESIDENT TO DELIVER FINAL STATE OF THE UNION ADDRESS TONIGHT:  Tonight will be President Bush’s last State of the Union address. The President told House Republicans at their retreat over the weekend that he would call on Congress to pass the economic stimulus package and argue for extending the 2001 and 2003 tax cuts. The President said, “The best thing we can do to deal with uncertainty in the economy is make the tax cuts we passed permanent.”

  • The President’s weekly radio address Saturday previewed his State of the Union address. The President said, “I will report that over the last seven years, we've made great progress on important issues at home and abroad. I will also report that we have unfinished business before us, and we must work together to get it done. In my speech, I will lay out a full plate of issues for Congress to address in the year ahead. Two of these issues require immediate attention. First is the economy. I know many of you are worried about the risk of an economic downturn, because of the instability in the housing and financial markets. You should know that while economic growth has slowed in recent months, the foundation for long-term growth remains solid. And I believe that with swift action, we can give our economy the boost it needs to continue expanding and creating new jobs for our citizens.” The President continued, “On Thursday, my Administration reached a bipartisan agreement with House Speaker Nancy Pelosi and Minority Leader John Boehner on an economic growth package. This package will deliver direct tax relief to hardworking Americans. It will also include incentives for businesses—including small businesses—to make new investments this year. I ask the House and Senate to enact this package into law as soon as possible. And while I understand the desire to add provisions from both the left and the right, it would be a mistake to undermine this important bipartisan agreement. By working together, we can provide our economy with a shot in the arm when we need it most.”
  • The President added, “The other urgent issue before Congress is a matter of national security. Congress needs to provide our intelligence professionals with the tools and flexibility they need to protect America from attack.”
  • The House is scheduled to take up its economic stimulus bill Tuesday. The Senate Finance Committee could mark up their bill as early as Wednesday.

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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