Daily Tax Update - April 23, 2008

PRESIDENT CALLS FOR ONE-YEAR FARM BILL EXTENSION:  Yesterday, President Bush said that Congress should send him a one-year or longer extension of the 2002 farm bill. The President said that the proposal being discussed by the conferees “would increase spending by at least $16 billion, masked in part by budgetary gimmicks and funded in part by additional tax revenues.” The President added, “These tax revenue provisions are unacceptable—including tax compliance initiatives being considered by the House and Senate conference committee. As important, the proposal also lacks the important reforms I’ve repeatedly called for. . .With record farm income, now is not the time for Congress to ask other sectors of the economy to pay higher taxes in order to increase the size of government.”

  • House Agriculture Chairman Collin Peterson has said that he expects to ask for another extension through May 9. Senate Finance Committee Chairman Max Baucus added, “We’re a lot closer than we’ve ever been.” 

TODAY IS “TAX FREEDOM DAY”:  According to the Tax Foundation, April 23 is the date on which Americans will have worked long enough to have earned enough money to pay this year's tax obligations at the federal, state and local levels. According to the Tax Foundation, this year is three days earlier than in 2007. The Foundation said that the economic stimulus rebates and a projection of slow growth in 2008 are the principal reasons for the earlier date.

STEPTOE & JOHNSON LLP’S RECENT TAX ARTICLES & PUBLICATIONS AVAILABLE:  A list of our recent tax publications and articles is available on Steptoe’s website via: http://www.steptoe.com/publications-area-4.html

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