Daily Tax Update - June 22, 2009

TAX-WRITING COMMITTEES CONTINUE TO LOOK FOR HEALTH CARE REFORM REVENUE RAISERS:  Congress is scheduled to recess Friday for its week-long July 4th break. Meanwhile, House Ways and Means and Senate Finance Committee Democrats are continuing to try to come up with the revenue offsets to help pay for a health care reform bill. The 852-page draft health care bill released late last week by House Democrats did not contain revenue raisers. Markups in the tax-writing Committees are expected to occur sometime after the July 4th recess.

  • Last week, the Congressional Budget Office projected that health care reform would cost approximately $1.6 trillion. Finance Committee Chairman Max Baucus said that he intends to offer a fully offset bill under $1 trillion. 
  • Ways and Means Committee ranking member Dave Camp said recently, “The Democrats are refusing to reveal the price tag of this bill or how they will pay for it, but it is obvious it will cost well over a trillion dollars.”

TAX BILLS INTRODUCED JUNE 19TH:
H.R.2963: To amend the Internal Revenue Code of 1986 to provide incentives for improving small manufacturers' computer technology.
Sponsor: Rep Dahlkemper, Kathleen A. [PA-3] (introduced 6/19/2009)      Cosponsors (22)

H.R.2964: To amend the Internal Revenue Code of 1986 to allow refunds of Federal motor fuel excise taxes on fuels used in mobile mammography vehicles.
Sponsor: Rep Heller, Dean [NV-2] (introduced 6/19/2009)      Cosponsors (8)

H.R.2966: To amend the Internal Revenue Code of 1986 to deny any deduction for direct-to-consumer advertisements of prescription drugs.
Sponsor: Rep Nadler, Jerrold [NY-8] (introduced 6/19/2009)      Cosponsors (None)

H.R.2967: To amend the Internal Revenue Code of 1986 to deny the alternative fuel and alternative fuel mixture credits for black liquor.
Sponsor: Rep Kirkpatrick, Ann [AZ-1] (introduced 6/19/2009)      Cosponsors (1)

H.R.2974: To amend the Internal Revenue Code of 1986 to allow individuals eligible for veterans health benefits to contribute to health savings accounts.
Sponsor: Rep Campbell, John [CA-48] (introduced 6/19/2009)      Cosponsors (2)

H.R.2982: To amend the Internal Revenue Code of 1986 to allow Indian tribes to transfer the credit for electricity produced from renewable resources.
Sponsor: Rep Grijalva, Raul M. [AZ-7] (introduced 6/19/2009)      Cosponsors (3)

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
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.