Daily Tax Update - December 9, 2009

HOUSE PASSES EXTENDERS BILL WITH CARRIED INTEREST OFFSET: Today, the House passed, by a 241 to 181 vote, a bill extending $31 billion in existing tax cuts. It is unclear when the Senate may act.

  • House Ways and Means Chairman Charles Rangel said, “The tax relief provided in today’s bill is essential to stimulating job creation and supporting the needs of struggling American families and businesses. Today’s discussion is an important step toward reforming the entire system to simplify the code, provide certainty for families and businesses, and continue our economic recovery.”
  • A summary of the provisions can be accessed here. 

AGREEMENT REACHED BETWEEN SENATE DEMOCRATS ON PUBLIC OPTION PROPOSAL: Senate Democrats said that they have reached agreement on a plan that would create alternatives to the public insurance option provision in its health care reform bill. According to Senate Majority Leader Harry Reid, the agreement provides “more choices for consumers and more competition for insurers.”

  • The new plan will be send to the Congressional Budget Office for scoring.

TAX BILLS INTRODUCED DECEMBER 8th:
H.R.4217: To amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, to amend title 49, United States Code, to extend authorizations for the airport improvement program, and for other purposes.
Sponsor: Rep Rangel, Charles B. [NY-15] (introduced 12/8/2009)      Cosponsors (6)

H.R.4226: To amend the Internal Revenue Code of 1986 to improve and extend certain energy-related tax provisions, and for other purposes.
Sponsor: Rep Reichert, David G. [WA-8] (introduced 12/8/2009)      Cosponsors (5)

H.R.4236: To amend the Internal Revenue Code of 1986 to provide a temporary exclusion of 100 percent of the gain on the sale or exchange of certain small business stock.
Sponsor: Rep Levin, Sander M. [MI-12] (introduced 12/8/2009)      Cosponsors (None)
Committees: House Ways and Means

H.R.4239: To amend the Internal Revenue Code of 1986 to modify the exception from the 10 percent penalty for early withdrawals from governmental plans for Federal and State qualified public safety employees.
Sponsor: Rep Meek, Kendrick B. [FL-17] (introduced 12/8/2009)      Cosponsors (1)

H.R.4242: To amend the Internal Revenue Code of 1986 to provide incentives for used oil re-refining, and for other purposes.
Sponsor: Rep Moran, Jerry [KS-1] (introduced 12/8/2009)      Cosponsors (None)

H.R.4244: To amend the Internal Revenue Code of 1986 to provide a simplified research tax credit for small businesses.
Sponsor: Rep Schock, Aaron [IL-18] (introduced 12/8/2009)      Cosponsors (1)

H.R.4246: To amend the Internal Revenue Code of 1986 to extend the alternative fuels credit for liquified petroleum gas through 2010.
Sponsor: Rep Walz, Timothy J. [MN-1] (introduced 12/8/2009)      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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