Daily Tax Update - June 11, 2008

BAUCUS HOPEFUL TO BRING EXTENDERS BILL BEFORE SENATE AGAIN “SOON”:  Following the failure of the Senate to obtain sufficient votes for cloture on the extenders bill (H.R. 6049), Senate Finance Committee Chairman Max Baucus (D-MT) said he that plans to talk with Senate Majority Leader Harry Reid (D-NV) on how to proceed with the bill. Baucus said that he hopes to bring the extenders package back to the floor “soon,” but did not give a specific time frame. 

  • Baucus and ranking member Charles Grassley (R-IA) met last night to discuss what to do next. After the meeting, Grassley said, “We did not make any decisions. But the energy between the two of us is good.” Grassley added that they are trying to reach an agreement that would avoid a prolonged floor debate, but said that might not be easy.
  • House Ways and Means Committee member Richard Neal (D-MA) said after yesterday’s Senate vote, “I know the popular argument is you can't get anything done as it gets closer to an election. I don't buy that when it comes to tax policy. I think there are a lot of things that need to get done to send the right signal to the markets, and I think the extenders...I think there's an opportunity there.”
  • Today, House Ways and Means Committee Chairman Charles Rangel (D-NY) said that he would use changing the tax treatment of carried interest as an offset to a one-year patch for the alternative minimum tax. Rangel said he was also considering an offset related to oil and gas.

TAX BILL INTRODUCED JUNE 10TH:
H.R.6222:  To amend the Internal Revenue Code of 1986 to allow a nonrefundable credit against income tax liability for gasoline and diesel fuel used in highway vehicles for nonbusiness purposes.
Sponsor: Rep Hastings, Alcee L. [FL-23] (introduced 6/10/2008)      Cosponsors (1)

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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