Daily Tax Update - July 31, 2008

SENATE’S SECOND STIMULUS PROPOSAL AROUND $24 BILLION:   The Senate Appropriations Committee is drafting an economic stimulus bill, or emergency supplemental, expected to cost around $24 billion. The package includes $10 billion for infrastructure improvements and $10 billion for natural disaster recovery.

  • Appropriations Committee Chairman Robert Byrd said, “The Congress needs to act now and do its part to stimulate the US economy and put our nation back on the right track. The chairman's [bill] would create over 200,000 jobs here in America and thousands of Americans would be trained for new job opportunities.”
  • House Speaker Nancy Pelosi recently said that a second stimulus bill should provide about $50 billion in aid. Pelosi said that about $10 billion should be provided for infrastructure with nearly $4.8 billion of that going to transportation improvements, including $3.57 billion for highways, $892 million for mass-transit agencies, $100 million for Amtrak, and $200 million for airport improvements. Today, Pelosi said, “Mind you, we still have to convince the president of the United States and many Republicans in Congress that a stimulus is needed. That is the challenge. That is what is holding up the next stimulus package.”
  • House and Senate Democratic leaders have said that they intend to finish work on the bill in September after Congress returns from its August recess.

TAX BILLS INTRODUCED JULY 30TH:
H.R.6665: To amend the Internal Revenue Code of 1986 to provide a credit against income tax for individuals who care for certain dependents with long-term care needs.
Sponsor: Rep Barrett, J. Gresham [SC-3] (introduced 7/30/2008)      Cosponsors (None)

H.R.6667: To amend the Internal Revenue Code of 1986 to provide a deduction for the cost of fuel used for commuting to and from work whether or not the taxpayer itemizes other deductions.
Sponsor: Rep Campbell, John [CA-48] (introduced 7/30/2008)      Cosponsors (28)

H.R.6672: To amend the Internal Revenue Code of 1986 to provide an exception to the reduction of renewable energy credit for certain authority under the Farm Security and Rural Investment Act of 2002.
Sponsor: Rep Herseth Sandlin, Stephanie [SD] (introduced 7/30/2008)      Cosponsors (1)

H.R.6674: To amend the Internal Revenue Code of 1986 to provide incentives for building homeless shelters in areas warranting assistance due to incidents of national significance.
Sponsor: Rep Jefferson, William J. [LA-2] (introduced 7/30/2008)      Cosponsors (None)

H.R.6675: To amend the Internal Revenue Code of 1986 to increase the standard charitable mileage rate for delivery of meals to elderly, disabled, frail and at risk individuals.
Sponsor: Rep Latta, Robert E. [OH-5] (introduced 7/30/2008)      Cosponsors (None)

H.R.6677: To amend the Internal Revenue Code of 1986 to provide for an inflation adjustment of the base amounts used to determine the amount of Social Security benefits included in gross income.
Sponsor: Rep Platts, Todd Russell [PA-19] (introduced 7/30/2008)      Cosponsors (None)

S.3365: A bill to amend the Internal Revenue Code of 1986 to provide for a nonrefundable tax credit for long-term care insurance premiums.
Sponsor: Sen Vitter, David [LA] (introduced 7/30/2008)      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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