Daily Tax Update - January 27, 2010

STATE OF THE UNION TO FOCUS ON ECONOMY: Today, a senior Administration official said that the President’s State of the Union address tonight will focus on the economy and job creation. The official said that the President will renew his focus on jobs, calling for prompt passage of bills providing tax cuts for job creation, new equipment purchases, and the elimination of capital gains for small businesses.

  • The President is also expected to reiterate his commitment to passing a health care reform bill. White House Press Secretary Robert Gibbs said, “There's clearly a caricature of a health reform bill that is viewed differently by the public than when you break out its component parts.” Gibbs added, “There is no rush,” and said that Congress still had the rest of the year to work out a bill.
  • Senate Majority Leader Harry Reid said that he and House Speaker Nancy Pelosi were exploring options for the health reform bill. Reid said, “There are a number of options being discussed.” Meanwhile House Majority Leader Steny Hoyer said, “I would be surprised if he (President Obama) says specifically exactly how he hopes to get health care done. Frankly, we’re trying to figure out what is possible.” Hoyer added, ”Senator Reid needs to determine what is possible on his side of the aisle — you know, what kind of support he can get. And we’re trying to figure out as well what we can pass. I think by next week we need to come to focus on the way we want to move forward.”
  • House Ways and Means Chairman Charles Rangel said, “We are not passing the Senate bill period.”

STEPTOE & JOHNSON LLP HOLDS ANNUAL EMPLOYMENT LAW UPDATE: On February 9, the Steptoe & Johnson LLP’s Employment and Labor Group will present its annual seminar on significant developments in employment, benefits, and labor law, keyed to the practical concerns of in-house legal counsel and human resources executives. Program and registration details can be accessed here.

TAX BILLS INTRODUCED JANUARY 26TH:
H.R.4518: To amend the Internal Revenue Code of 1986 to deny a deduction for image advertising expenses for any trade or business the gross receipts of which exceed $100 million.
Sponsor: Rep Hall, John J. [NY-19] (introduced 1/26/2010)      Cosponsors (None)

S.2955: A bill to amend the Internal Revenue Code of 1986 to provide a temporary payroll increase tax credit for certain employers.
Sponsor: Sen Feingold, Russell D. [WI] (introduced 1/26/2010)      Cosponsors (None)

S.2957: A bill to amend the Internal Revenue Code of 1986 to temporarily reduce payroll taxes of employees and employers by one-half, and for other purposes.
Sponsor: Sen LeMieux, George S. [FL] (introduced 1/26/2010)      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.

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