Daily Tax Update - March 12, 2009

TREASURY SECRETARY HINTS TAX INCREASE ON HIGH INCOME EARNERS MAY BE POSTPONED:  Today, during a Senate Budget Committee hearing, Treasury Secretary Timothy Geithner was asked whether the tax increases are dependent upon an economic rebound. Geithner said, “We need to lay out an ambitious path for bringing those deficits down, commit to achieving that, with a mix of measures on the resource side and the spending side that do the best possible job of leaving our economy stronger. And that's what the president's budget tries to do.” Geithner continued, “Now, of course, we're going to have to watch how the economy evolves, and I want to underscore that one of the mistakes governments may have made over time in dealing with economic crises is putting the brakes on too quickly or in ways that, you know, hurt growth just as it's starting to take hold.” Geithner added “I'm just saying that recovery requires that we keep stimulus sustained until growth is in place, but we have to do it in a fiscally responsible way.”

TAX BILLS INTRODUCED MARCH 11th:
H.R.1433: To amend the Internal Revenue Code of 1986 to allow a credit against tax for volunteer firefighters.
Sponsor: Rep Boozman, John [AR-3] (introduced 3/11/2009)      Cosponsors (None)

H.R.1434: To amend the Internal Revenue Code of 1986 to allow a deduction for certain travel expenses of qualified emergency volunteers.
Sponsor: Rep Boozman, John [AR-3] (introduced 3/11/2009)      Cosponsors (None)

H.R.1447: To amend the Internal Revenue Code of 1986 to exclude from gross income gain on the sale or exchange of farmland development rights.
Sponsor: Rep Pitts, Joseph R. [PA-16] (introduced 3/11/2009)      Cosponsors (4)

H.R.1449: To amend the Internal Revenue Code of 1986 to repeal the qualification standard for exterior windows, doors, and skylights.
Sponsor: Rep Roe, David P. [TN-1] (introduced 3/11/2009)      Cosponsors (None)

H.R.1453: To amend the Internal Revenue Code of 1986 to extend and expand the homebuyer tax credit.
Sponsor: Rep Terry, Lee [NE-2] (introduced 3/11/2009)      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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