Daily Tax Update - July 21, 2009

KEY HOUSE COMMITTEE POSTPONES HEALTH CARE MARK UP:  After Democratic leaders were unable to gather enough support from fiscally conservative members of the House Energy and Commerce Committee, the Committee postponed voting on health care reform legislation until tomorrow. Although two other House Committees have approved various portions of the health care reform legislation, the Energy and Commerce Committee has jurisdiction over various health care policy issues.

  • Today, when House Ways and Means Chairman Charles Rangel was asked about Speaker Nancy Pelosi’s suggestion that his health care surcharge tax provision be rewritten to target millionaires, Rangel said, “She has mentioned this more than once with me present in a group, but not as any indication that she wants our committee to review it.  She’s never discussed it with me.” Rangel said that he doesn’t see any need to rewrite the bill, adding “No one’s asked us to, and I don’t see any reason at this point to do it.” Rangel added, “I support what we have put out. If anybody has a problem with it, I’m anxious to listen.” Ways and Means member Richard Neal said, “I assume we’ll look at what she [Pelosi] said...thought we resolved it satisfactorily in committee.”
  • President Obama continues his full court press for passage of health care legislation before the August recess and said today, “[T]he default in Washington is inaction and inertia.” When the President was asked why he felt so strongly about the timeline, he replied, “because if you don't set a deadline in this town, nothing happens.”
  • Today, House Majority Leader Steny Hoyer suggested that the House may not vote on the bill before it leaves for the August recess. Hoyer said, “I’ll make that decision next week.  I’m not going to make it now.” Hoyer added, “I don’t think it’s a question of staying another week. It’s a question of seeing whether or not we can get to consensus. And if we can, both in the House and in the Senate, we ought to move.”
  • House Minority Leader Boehner said this morning, “Mr. President, it's time to scrap this bill.” House Minority Whip Cantor added, “Either this bill fails, or it will change dramatically. If this bill fails, it will be because of disagreement among the Democrats as to the proper direction to head as far as healthcare reform is concerned.”
  • Senate Finance Committee Chairman Max Baucus said yesterday that a group of six Senators—three Democrats and three Republicans—have “tentatively” reached an agreement on four or five of the about 12 issues that need to be negotiated. Baucus said, “These are big issues, not just small, dotting the I’s and crossing the T’s. I know we’re making headway.” Today, Senate Majority Leader Reid said that he expects the Senate Finance Committee to complete a draft healthcare overhaul bill by the end of this week.

MISCELLANEOUS GUIDANCE ISSUED ODAY:
Revenue Ruling 2009-22 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

The rates are published monthly for purposes of sections 42, 382, 412, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.
       
TAX BILLS INTRODUCED JULY 20TH:
H.R.3260: To amend the Internal Revenue Code of 1986 to make the expensing of environmental remediation costs permanent law.
Sponsor: Rep Becerra, Xavier [CA-31] (introduced 7/20/2009)      Cosponsors (1)

H.R.3263: To amend the Internal Revenue Code of 1986 to provide that amounts paid for foods for special dietary use, dietary supplements, or medical foods shall be treated as medical expenses.
Sponsor: Rep Burton, Dan [IN-5] (introduced 7/20/2009)      Cosponsors (None)

H.R.3267: To amend the Internal Revenue Code of 1986 to provide relief with respect to the children of members of the Armed Forces of the United States who die as a result of service in a combat zone.
Sponsor: Rep Meek, Kendrick B. [FL-17] (introduced 7/20/2009)      Cosponsors (None)

S.1474: A bill to amend the Internal Revenue Code of 1986 to repeal the provision prohibiting the crediting of interest to the Highway Trust Fund, and for other purposes.
Sponsor: Sen Baucus, Max [MT] (introduced 7/20/2009)      Cosponsors (2)

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.

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