Daily Tax Update - July 16, 2009

WAYS AND MEANS MARK UP OF HEALTH CARE BILL CONTINUES:  The House Ways and Means Committee mark up of the tax provisions in the health care reform bill is expected to continue until later tonight or tomorrow. Prior to the mark up, the Committee released a revised Chairman’s Mark that contains two new revenue proposals. The revised mark changes the definition of qualified medical expenses for health savings accounts, flexible spending accounts, and Archer medical savings accounts and also contains a provision making changes to how health coverage is extended to eligible beneficiaries. 

  • Ways and Means Republicans are expected to offer dozens of amendments during the mark up. Republican member Rep. Paul Ryan said, “We’ve got a lot of amendments. We’ve got a lot of things we want to do. It’s the biggest markup we’ve had in Ways and Means in a generation.” Regarding the possibility of the mark up continuing until Friday, Ryan said, “It depends on how long Charlie is willing to let it go into the evening. If he wants to cut it and start over [Friday] that’s his call.”
  • A description of the revised mark can be accessed here
  • The Committee released a fact sheet titled, “How the Health Care Surcharge Works”. 
  • Today, Senate Majority Leader Harry Reid said that he was committed to finishing a health care bill before the August recess. Reid said, “Whether we brought this bill up at 12 o’clock tonight or next November or next December, it would be too early. There’s no arbitrary deadlines that have been set. We’ve had this schedule for months now, and I think we can meet the schedule that’s been set.”

TAX BILL INTRODUCED JULY 15TH:
H.R.3227: To amend the Internal Revenue Code of 1986 to permanently extend and expand the charitable deduction for contributions of food inventory.
Sponsor: Rep Levin, Sander M. [MI-12] (introduced 7/15/2009)      Cosponsors (1)

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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