Daily Tax Update (Special Edition) - September 29, 2008

SUMMARY AND TEXT OF FINANCIAL RESCUE PLAN AVAILABLE:  The House is scheduled to vote on the “Emergency Economic Stabilization Act of 2008” (H.R. 3997) around noon today while the Senate vote may not occur until Wednesday.  

Today, President Bush said, “I'm confident that this rescue plan along with other measures taken by the Treasury Department and the Federal Reserve will begin to restore strength and stability to America's financial system and overall economy. .  . And I'm confident in that in long run, America will overcome these challenges and remain the most dynamic and productive economy in the world."  The President added, “I know many Americans are worried about the cost of the bill, and I understand their concern.  This bill commits up to 700 billion taxpayer dollars, because a large amount of money is necessary to have an impact on our financial system.  However, both the non-partisan Congressional Budget Office and the Office of Management and Budget expect that the ultimate cost to the taxpayer will be far less than that. In fact, we expect that over time, much -- if not all -- of the tax dollars we invest will be paid back.”

Sen. Judd Gregg (R-NH) said, “If it doesn’t pass, we shouldn’t be in Congress.”  Gregg added that he thought the package would pass with broad bipartisan support in both the House and Senate.

  • The text of the bill and summaries can be accessed here and here.
  • The tax provisions in the bill can be accessed here.

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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