Daily Tax Update - July 11, 2008

SENATE EXPECTED TO PASS HOUSING STIMULUS BILL SOON:  Yesterday, the Senate invoked cloture on its housing stimulus bill which contains $14 billion in tax incentives and includes a refundable tax credit for first-time home buyers. Offsets would come from information reporting for payment card and third-party network transactions, denial of excludable gains from the sale of a primary residence for periods in which the home was not used as a primary residence, and imposition of or increases in several failure-to-file penalties.

SENATE COMMITTEE HOLDS HEARING ON TAX TREATIES:  Yesterday, the Senate Foreign Relations Committee held a hearing on three major US tax treaties--accords with Canada, Iceland, and Bulgaria. Because there were eleven different treaties on the agenda, only approximately a third of the hour-and-a-half hearing was spent discussing the tax treaties, although much of the discussion that was devoted to tax treaties centered on the US-Canada protocol. The discussions of the protocol mainly concerned the binding arbitration provision and the services PE provision.


S.3243: A bill to amend the Internal Revenue Code of 1986 to allow expenses relating to all home schools to be qualified education expenses for purposes of a Coverdell education savings account.
Sponsor: Sen Vitter, David [LA] (introduced 7/10/2008)      Cosponsors (1)

S.3244: A bill to amend the Internal Revenue Code of 1986 to expand the Coverdell education savings accounts to allow home school education expenses, and for other purposes.
Sponsor: Sen Vitter, David [LA] (introduced 7/10/2008)      Cosponsors (None)

S.3246: A bill to amend the Internal Revenue Code of 1986 to allow the Secretary of the Treasury to set the standard mileage rate for use of a passenger automobile for purposes of the charitable contributions deduction.
Sponsor: Sen Cardin, Benjamin L. [MD] (introduced 7/10/2008)      Cosponsors (2) 

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