Daily Tax Update - June 20, 2008

THIRD TAX EXTENDERS CLOTURE VOTE “UNLIKELY” BEFORE JULY RECESS --  ADMINISTRATION ISSUES VETO THREAT FOR HOUSING STIMULUS BILL:  Senate Finance Committee Chairman Max Baucus said yesterday that it is “unlikely” that the Senate would hold a third procedural vote on the tax extenders bill before the July Fourth recess. Congress is scheduled to break for its one-week July Fourth recess at the end of next week.

  • Meanwhile, the Administration has issued a Statement of Administration Policy (SAP) threatening to veto the housing stimulus bill because of objections to the tax credit for first-time home buyers and other provisions. The SAP stated, “A homebuyer's tax credit would be an inefficient use of resources, given the amount of forgone revenue captured by those who would have otherwise purchased a home.” The SAP added, “[T]he Administration strongly opposes a program to provide block grants that would allow State governments to purchase foreclosed properties.”

TAX BILLS INTRODUCED JUNE 19TH:
H.R.6310: To amend the Internal Revenue Code of 1986 to require that the payment of the manufacturers' excise tax on recreational equipment be paid quarterly.
Sponsor: Rep Kind, Ron [WI-3] (introduced 6/19/2008)      Cosponsors (3)

H.R.6321: To amend the Internal Revenue Code of 1986 to provide a refundable credit against income tax to assist individuals with high residential energy costs.
Sponsor: Rep McHugh, John M. [NY-23] (introduced 6/19/2008)      Cosponsors (None)

S.3162: A bill to amend the Internal Revenue Code of 1986 to provide relief to improve the competitiveness of United States corporations and small businesses, to eliminate tax incentives to move jobs and profits overseas, and for other purposes.
Sponsor: Sen Voinovich, George V. [OH] (introduced 6/19/2008)      Cosponsors (None)

S.3171: A bill to amend the Internal Revenue Code of 1986 to exclude certain tax-exempt financing of energy transportation infrastructure from the private business use tests, and for other purposes.
Sponsor: Sen Barrasso, John [WY] (introduced 6/19/2008)      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
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