Daily Tax Update - February 27, 2009

WAYS AND MEANS TO HOLD HEARING ON TREASURY’S BUDGET:  On March 3, the House Ways and Means Committee will hold a hearing on the overview of President Obama’s budget proposals for fiscal year 2010. Treasury Secretary Timothy Geithner is the only witness scheduled to appear. 

  • In announcing the hearing, Committee Chairman Charles Rangel said, “I believe the Administration has gotten off to a promising start. I enjoyed working with Secretary Geithner on the economic recovery package and look forward to hearing him present an overview of the President’s budget. This year’s budget comes at a time of great concern about the economy and presents us with an opportunity to work together to move our fiscal policy in new directions and seek bipartisan solutions to the economic challenges facing American families.”
  • The President’s budget blueprint released yesterday contains approximately $353 billion in revenue raisers, which include reinstating Superfund taxes, taxing carried interest as ordinary income, codifying the economic substance doctrine, repealing LIFO, implementing international enforcement, “reforming deferral, and other tax reform policy,” repealing the tax code Section 199 manufacturing deduction for oil and natural gas companies, and repealing the percentage depletion for oil and natural gas from marginal properties. Specific details of the revenue proposals are not expected to be available until the end of March or early April.

TAX BILLS INTRODUCED FEBRUARY 26TH
H.R.1205: To amend the Internal Revenue Code of 1986 to provide for the establishment of ABLE accounts for the care of family members with disabilities, and for other purposes.
Sponsor: Rep Crenshaw, Ander [FL-4] (introduced 2/26/2009)      Cosponsors (3)

S.488: A bill to amend the Public Health Service Act, the Employee Retirement Income Security Act of 1974, and the Internal Revenue Code of 1986 to require group and individual health insurance coverage and group health plans to provide coverage for individuals participating in approved cancer clinical trials.
Sponsor: Sen Brown, Sherrod [OH] (introduced 2/26/2009)      Cosponsors (None)

S.491: A bill to amend the Internal Revenue Code of 1986 to allow Federal civilian and military retirees to pay health insurance premiums on a pretax basis and to allow a deduction for TRICARE supplemental premiums.
Sponsor: Sen Webb, Jim [VA] (introduced 2/26/2009)      Cosponsors (10)

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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