Daily Tax Update - June 9, 2010

SENATE DEBATE ON EXTENDERS CONTINUES: Senate efforts to secure the 60 votes needed for passage of its $140 billion tax extenders package will continue into next week. The Senate is not scheduled to hold any votes on June 11 and 14, and is debating a non-tax issue tomorrow. Several amendments to the substitute measure could be brought to the Senate floor today.

  • Efforts to temper the House-passed carried interest provision with the new Senate changes have not totally won over several Senate Democrats. Finance Committee member Sen. John Kerry said, “There has always been a distinction between how capital works in the economy. Having that differential, if set at an appropriate level, is job-creating and good for us in the long run.” Kerry added, “We're looking at it. It's a step in the right direction.” Meanwhile, another Finance member Charles Schumer said that he does not support any special exemptions for certain industries. Schumer said, “I've always said you have to treat everybody equally.”
  • Today, House Ways and Means Chairman Sander Levin said, “There's one provision that they inserted relating to oil and gas in carried interest I don't like. And I've expressed that to the Senate. I'm opposed to carving out. [...] I want a generic bill.”
  • The Senate’s modified carried interest provision’s reduced revenue shortfall from the House-passed bill is partially offset by raising the excise tax on oil from 34 cents in the House bill to 41 in the Senate bill.

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