Daily Tax Update - February 7, 2008

SENATE DEMOCRATS AGREE TO SCALED BACK STIMULUS PROPOSAL:  Yesterday, the Senate failed to secure the 60 votes needed to pass the Finance Committee’s $158 billion economic stimulus bill. The cloture vote on the Finance Committee plan was defeated 58-41.

  • Today, Senate Democrats agreed to vote on an amendment to the House-passed bill which would make low-income seniors and disabled veterans eligible for tax rebates. A vote could be held later today.  Finance Committee Chairman Max Baucus said, “Today’s agreement is a victory for the American people. Today’s agreement will speed rebate checks to the overwhelming majority of Americans, giving them needed tax relief. Today is a victory for the American people. . .And I urge the Senate to adopt it right away.”
  • Senate Budget Chairman Kent Conrad said, “Politics is the art of the possible, and this appears to be what is possible at this point. So it’s a good step, an important step, I think more is going to have to be done.” The House could take up the Senate-passed bill later tonight. 

TAX BILLS INTRODUCED FEBRUARY 6TH:
H.R.5231: To amend the Internal Revenue Code of 1986 to extend the credit for electricity produced from certain renewable resources.
Sponsor: Rep Braley, Bruce L. [IA-1] (introduced 2/6/2008)      Cosponsors (None)

H.R.5239: To amend the Internal Revenue Code of 1986 to provide that the proceeds of qualified mortgage bonds may be used to provide refinancing for subprime loans, to provide a temporary increase in the volume cap for qualified mortgage bonds used to provide that refinancing, and for other purposes.
Sponsor: Rep Porter, Jon C. [NV-3] (introduced 2/6/2008)      Cosponsors (1)

H.R.5242: To amend the Internal Revenue Code of 1986 to make permanent the deduction of State and local general sales taxes.
Sponsor: Rep Young, C.W. Bill [FL-10] (introduced 2/6/2008)      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.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.