Daily Tax Update - August 10, 2010: House Passes Bill with International Offsets

The Daily Tax Update will be published on a periodic basis until Congress returns from its August recess on September 13th.

HOUSE RETURNS TO PASS EDUCATION, MEDICAID FUNDING BILL WITH INTERNATIONAL OFFSETS: Today, the House returned for one day from its August recess to take up the $26 billion Senate-passed Medicaid and education funding bill (H.R. 1586) which contains numerous international offsets. The bill passed by a vote of 247 to 161.

  • The offsets would impose a new limitation on the amount of foreign taxes deemed paid with respect to tax code Section 956 inclusion, deny the use of foreign tax credits in cases in which foreign income is not subject to US taxation by reason of covered asset acquisitions, and repeal special rules for interest and dividends received from persons meeting the 80-percent foreign business requirements. The bill also eliminates the advance refundability of the earned income tax credit.
  • The Joint Committee on Taxation's summary of the revenue provisions in the bill can be accessed here.

RANGEL: “I AM NOT GOING AWAY”: Today, in a House floor speech, former Ways and Means Committee Chairman Charles Rangel said, “I am not going away. I am here.”  Rangel added, “If I can’t get my dignity back here, then fire your best shot on getting rid of me through expulsion.” Rangel said, “You're not going to get me to resign to make you feel comfortable.” Rangel also asked for a trial soon, "Don't leave me swinging in the wind.” Last month, a House Committee on Standards of Official Conduct Subcommittee charged Rangel with 13 counts of wrongdoing.

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