Daily Tax Update - June 4, 2008

SENATE TAX EXTENDERS BILL LIKELY TO GO STRAIGHT TO FLOOR:  The Senate’s version of its tax extenders bill will probably forego a Finance Committee mark up. The bill is expected to be brought up on the Senate floor prior to the July 4th recess. Finance Committee Chairman Max Baucus (D-MT) said that the Senate version would be similar to the House bill with some modifications. Baucus also said that he was uncertain whether he would add a one-year AMT “patch.”

  • Finance Committee member Kent Conrad (D-ND) said, “Given the shortness of this year, given where people are, it may get to a resolution quicker just to go to the floor. So I think one thing we’ve learned is, there is no one magic way to get things done around here.”
  • The House extenders bill contains offsets to stay within pay-as-you-go budget rules. The offsets in the House bill would curtail an offshore deferred-compensation technique often used by hedge fund managers and delay implementation of interest allocation rules that benefit multinational corporations.
  • Additional details on the House bill can be accessed via: http://waysandmeans.house.gov/legis.asp?formmode=item&number=633.

H.R.6172: To amend the Internal Revenue Code of 1986 to allow an offset against income tax refunds to pay for State judicial debts that are past-due.
Sponsor: Rep Ramstad, Jim [MN-3] (introduced 6/3/2008)      Cosponsors (8)

H.R.6173: To amend the Internal Revenue Code of 1986 to suspend temporarily the excise tax on aviation fuel used in commercial aviation.
Sponsor: Rep Sessions, Pete [TX-32] (introduced 6/3/2008)      Cosponsors (None)

S.3076: A bill to amend the Internal Revenue Code of 1986 to provide a tax deduction for itemizers and nonitemizers for expenses relating to home schooling.
Sponsor: Sen Vitter, David [LA] (introduced 6/3/2008)      Cosponsors (None)

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