Daily Tax Update - April 16, 2010

SENATE PASSES NON-BINDING RESOLUTION OPPOSING A VALUE-ADDED TAX: Yesterday, as part of a bill providing for a short term extension of unemployment benefits, health subsidies for laid-off workers, and higher Medicare payments to physicians, the Senate overwhelmingly passed a non-binding resolution opposing a value-added tax (VAT). The resolution passed the Senate by an 85-13 vote.

  • The non-binding, sense of the Senate resolution was sponsored by Sen. John McCain. McCain’s resolution stated, “It is the sense of the Senate that the Value Added Tax is a massive tax increase that will cripple families on fixed income and only further push back America's economic recovery and the Senate opposes a Value Added Tax.”
  • White House economic adviser, Paul Volcker, who serves as chairman of the President’s tax reform commission, recently suggested that a VAT should be considered. Volcker recently said a VAT is "not as toxic an idea" as it used to be, and may be necessary.
  • Ranking Finance member Charles Grassley recently reacted to Volcker’s comments that the United States should consider imposing a Value Added Tax, or national sales tax. Grassley said, “During his campaign for office, the President ran on several tax promises. I won't go into the ones that were undone with the health care bill. But a key promise was to restrain the growth in government, so the federal revenue base would stay within its historic average of 18.2 percent. Now, with the permanent explosion of federal spending across the board, Chairman Volcker is giving an unvarnished assessment of where the Administration feels it must go. To make up for the largest levels of spending and deficits in modern history, the Administration is laying the foundation for a large, misguided new tax, a first-time American VAT. The Democratic leadership in Congress has said much the same thing. If the President wants to add completely new layers of taxation, then he should take this issue before the American people when he runs for re-election. The Administration and the Democratic leadership are asking the American taxpayer to make up for their inability to do what every responsible American household does, and that is to live within their means.”

TAX BILLS INTRODUCED APRIL 15TH:
H.R.5029: To amend the Internal Revenue Code of 1986 to allow the private sector to create robust levels of economic growth.
Sponsor: Rep Jordan, Jim [OH-4] (introduced 4/15/2010)      Cosponsors (1)

H.R.5030: To amend the Internal Revenue Code of 1986 to allow distributions from 529 plans for the payment of student loans.
Sponsor: Rep Bean, Melissa L. [IL-8] (introduced 4/15/2010)      Cosponsors (4)

H.R.5031: To amend the Internal Revenue Code of 1986 to allow a credit against tax for individuals age 18 through 30 for certain retirement contributions.
Sponsor: Rep Capito, Shelley Moore [WV-2] (introduced 4/15/2010)      Cosponsors (None)

H.R.5036: To amend the Internal Revenue Code of 1986 to establish a program to populate downloadable tax forms with taxpayer return information.
Sponsor: Rep Foster, Bill [IL-14] (introduced 4/15/2010)      Cosponsors (1)

H.R.5041: To amend the Internal Revenue Code of 1986 to extend the qualifying advanced energy project credit.
Sponsor: Rep Hare, Phil [IL-17] (introduced 4/15/2010)      Cosponsors (52)

H.R.5047: To amend the Internal Revenue Code of 1986 to provide taxpayer protection and assistance, and for other purposes.
Sponsor: Rep Becerra, Xavier [CA-31] (introduced 4/15/2010)      Cosponsors (None)

H.R.5050: To amend the Internal Revenue Code of 1986 to provide an election for unmarried, nonitemizing individuals to have their returns prepared by the Secretary of the Treasury, and for other purposes.
Sponsor: Rep Cooper, Jim [TN-5] (introduced 4/15/2010)      Cosponsors (None)

H.R.5054: To prohibit the Internal Revenue Service from hiring new employees to enforce the Federal Government's invasion into the health care lives of American citizens.
Sponsor: Rep Forbes, J. Randy [VA-4] (introduced 4/15/2010)      Cosponsors (None)

H.R.5058: To amend the Internal Revenue Code of 1986 to provide special rules for investments lost in a fraudulent Ponzi-type scheme.
Sponsor: Rep Pascrell, Bill, Jr. [NJ-8] (introduced 4/15/2010)      Cosponsors (2)

H.R.5060: To amend the Internal Revenue Code of 1986 to allow a refundable credit against income tax for tuition expenses incurred for each qualifying child of the taxpayer in attending public or private elementary or secondary school.
Sponsor: Rep Smith, Christopher H. [NJ-4] (introduced 4/15/2010)      Cosponsors (None)

S.3208: A bill to amend the Internal Revenue Code of 1986 to provide a special rule for allocating the cover over of distilled spirits taxes between Puerto Rico and the Virgin Islands.
Sponsor: Sen Menendez, Robert [NJ] (introduced 4/15/2010)      Cosponsors (4)

S.3212: A bill to amend the Internal Revenue Code of 1986 and section 1603 of the American Recovery and Reinvestment Tax Act of 2009 to provide that qualified energy efficiency property is eligible for the energy credit and the Department of Treasury grant.
Sponsor: Sen Menendez, Robert [NJ] (introduced 4/15/2010)      Cosponsors (None)

S.3215: A bill to amend the Internal Revenue Code of 1986 to provide taxpayer protection and assistance, and for other purposes.
Sponsor: Sen Bingaman, Jeff [NM] (introduced 4/15/2010)      Cosponsors (11)

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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