Daily Tax Update - April 18, 2008

FARM BILL NEGOTIATIONS BREAK WITH LITTLE PROGRESS:  Farm bill negotiators will meet again next week after today’s discussions broke off without much progress on the remaining contentious issues. The next meeting is tentatively scheduled for April 22nd. House and Senate negotiators have continued to swap offers and counteroffers on proposed offsets and spending provisions for the bill. President Bush signed a one-week extension of the 2002 farm bill today.

  • Today, Ranking Finance Committee member Charles Grassley said, “The Senate put together a good-faith compromise that was chock full of incentives for conservation, renewable energy and reform. In fact, our relatively small tax package includes more reform than all of the ‘policy package’ put together. Our offer includes additional funding for nutrition, which is important to all conferees, including Speaker Pelosi. I hope the House negotiators will finally take a look at the actual policy instead of throwing it down the drain without seeing the good things in the package. But, to make this process work, we all must give and take, and be intellectually honest about the numbers. If the House is going to look at the agricultural tax package over ten years, then the same test has to be applied on the spending side. A dollar of revenue ought to be counted the same way as a dollar of spending.”
  • Yesterday, House Ways and Means Committee Chairman Rangel did not endorse the latest round of offsets proposed by the Senate. Rangel said, “There's nothing positive I can say. Everyone who has given something up is in a position to say I have gone as far as I can.” Rangel added, “We are closer, but there are so many different directions for how we are closer.”
  • House Speaker Nancy Pelosi has previously said that she would not allow the farm bill to reach the House floor with the $2.5 billion in new tax provisions sought by the Senate.

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TAX BILLS INTRODUCED APRIL 17TH:

S.2884: A bill to amend the Internal Revenue Code of 1986 to provide incentives to improve America's research competitiveness, and for other purposes.
Sponsor: Sen Collins, Susan M. [ME] (introduced 4/17/2008)      Cosponsors (1)

S.2885: A bill to amend the Internal Revenue Code of 1986 to expand the availability of industrial development bonds to facilities manufacturing intangible property.
Sponsor: Sen Snowe, Olympia J. [ME] (introduced 4/17/2008)      Cosponsors (3)

S.2886: A bill to amend the Internal Revenue Code of 1986 to amend certain expiring provisions.
Sponsor: Sen Baucus, Max [MT] (introduced 4/17/2008)      Cosponsors (9)

S.2890: A bill to amend the Internal Revenue Code of 1986 to provide for a highway fuel tax holiday.
Sponsor: Sen McCain, John [AZ] (introduced 4/17/2008)      Cosponsors (8)
Committees: Senate Finance

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