Daily Tax Update - July 30, 2008

PRESIDENT ISSUES VETO THREAT ON TAX EXTENDERS BILL -- FOURTH CLOTURE VOTE FAILS:  Today, the Senate failed for the fourth time to invoke cloture on the tax extenders bill. The 51-43 vote came shortly after the Administration issued its latest veto threat on the bill. The Administration’s Statement of Administration Policy said that it does not believe “efforts to avoid tax increases on Americans need to be coupled with provisions to increase revenue.”

  • Senate Minority Leader Mitch McConnell urged Republicans to vote against invoking cloture because it would take time away from the energy market speculation bill (S. 3268) currently on the Senate floor. Republicans have also opposed the offsets in the bill. However, Senate Majority Leader Reid said that the House won’t support a bill unless it is offset. Reid said, “[W]e know the House won't accept that, and rightfully so.”
  • It is unlikely that the Senate will hold another cloture vote until Congress returns from its month-long recess in September. Finance Committee Chairman Max Baucus said, “We'll keep working. There isn't much room for negotiation. The other side isn't giving us much room.”
  • Baucus added, “Today, the Senate missed a huge opportunity to stand up and stand together, for jobs, energy, and families. This is the fourth time that Senators have failed to do what’s right on this tax relief bill, and they’re going to hear about it over the August recess. We’re about to go home and face a lot of folks who need good-paying jobs to handle the high price of gasoline and food, and long-term energy solutions to help bring those prices down. We’re going to hear from folks who can’t afford a heavy hit on their taxes from the alternative minimum tax or from the expiration of other family tax cuts that are running out right now. I’ll keep fighting for these priorities and working to find a way forward. I hope Senators will answer the call in September, and work together for jobs, energy, and American families.”

PRESIDENT SIGNS HOUSING BILL:  Today, President Bush signed the housing stimulus bill that includes a $15.1 billion tax title. The President had once threatened to veto the bill and signed it without an official bill signing ceremony.

  • A White House spokesman said, “We look forward to put in place new authorities to improve confidence and stability in markets.”

TAX BILLS INTRODUCED JULY 29TH:
H.R.6631: To amend the Internal Revenue Code of 1986 to modify the withholding requirement with respect to proceeds from certain pari-mutuel wagers.
Sponsor: Rep Boustany, Charles W., Jr. [LA-7] (introduced 7/29/2008)      Cosponsors (None)

H.R.6634: To amend the Internal Revenue Code of 1986 to allow dyed diesel to be sold in rural areas for use in highway vehicles.
Sponsor: Rep Hill, Baron P. [IN-9] (introduced 7/29/2008)      Cosponsors (None)

H.R.6640: To amend the Internal Revenue Code of 1986 to provide relief in the case of federally declared disasters.
Sponsor: Rep Kind, Ron [WI-3] (introduced 7/29/2008)      Cosponsors (13)

H.R.6648: To amend the Internal Revenue Code of 1986 to allow each individual a $500 credit to help with high energy prices.
Sponsor: Rep Sali, Bill [ID-1] (introduced 7/29/2008)      Cosponsors (22)

S.3359: A bill to amend the Internal Revenue Code of 1986 to repeal the shipping investment withdrawal rules in section 955 and to provide an incentive to reinvest foreign shipping earnings in the United States.
Sponsor: Sen Cantwell, Maria [WA] (introduced 7/29/2008)      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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