Daily Tax Update - January 26, 2011: Obama Calls For Revenue-Neutral Corporate Tax Reform And Corporate Rate Cut

OBAMA CALLS FOR REVENUE-NEUTRAL CORPORATE TAX REFORM AND CORPORATE RATE CUT:   In last night’s State of the Union address, President Obama called on Congress to cut the top US corporate tax rate for the first time in 25 years “without adding to our deficit.”  The President said, “But to help our companies compete, we also have to knock down barriers that stand in the way of their success. For example, over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries.  Those with accountants or lawyers to work the system can end up paying no taxes at all.  But all the rest are hit with one of the highest corporate tax rates in the world.  It makes no sense, and it has to change.” 

  • The President also called for bi-partisan, revenue-neutral tax reform but did not offer any specifics for achieving his plan.  The President said, “So tonight, I’m asking Democrats and Republicans to simplify the system.  Get rid of the loopholes.  Level the playing field.  And use the savings to lower the corporate tax rate for the first time in 25 years –- without adding to our deficit.  It can be done." The President added, “And if we truly care about our deficit, we simply can’t afford a permanent extension of the tax cuts for the wealthiest 2 percent of Americans. Before we take money away from our schools or scholarships away from our students, we should ask millionaires to give up their tax break. It’s not a matter of punishing their success.  It’s about promoting America’s success. In fact, the best thing we could do on taxes for all Americans is to simplify the individual tax code.  This will be a tough job, but members of both parties have expressed an interest in doing this, and I am prepared to join them. So now is the time to act. Now is the time for both sides and both houses of Congress –- Democrats and Republicans -– to forge a principled compromise that gets the job done. If we make the hard choices now to rein in our deficits, we can make the investments we need to win the future."
  • In reaction to last night’s speech, House Ways and Means Committee Chairman Dave Camp said, “Although the President hit some positive notes in his speech, I was disappointed he didn’t go further.  While reaching out to Republicans on taxes, trade and health care, we needed more than a few token gestures here and there.  More concrete plans for getting America back to work were needed in these tough economic times.”  Camp added, “While the President focused on the need for corporate tax reform to make our employers more competitive, 75 percent of America’s job creators are small businesses.  Moving our economy forward and creating a climate for job growth requires a tax code that empowers all job creators – large and small.  Tax reform should address the entire tax code and find ways to help America’s job creators and families deal with the complexity and cost burdens of the current code.”
  • Ranking Senate Finance member Sen. Orrin Hatch also called for comprehensive tax reform.  Hatch said, “We must cast a wide net and examine the entirety of the tax code, which is overly burdensome and complex not only to corporations, but small businesses and families as well.”

TAX BILLS INTRODUCED JANUARY 25TH:
1. [112nd] H.R.414: To amend the Internal Revenue Code of 1986 to reform the system of public financing for Presidential elections, and for other purposes.
Sponsor: Rep Price, David E. [NC-4] (introduced 1/25/2011)      Cosponsors (1)
Committees: House Administration; House Ways and Means
Latest Major Action: 1/25/2011 Referred to House committee. Status: Referred to the Committee on House Administration, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

2. [112nd] H.R.417: To amend the Internal Revenue Code of 1986 to repeal the expansion of certain information reporting requirements to corporations and to payments for property, to impose a surcharge on high income taxpayers, and for other purposes.
Sponsor: Rep Owens, William L. [NY-23] (introduced 1/25/2011)      Cosponsors (13)
Committees: House Ways and Means
Latest Major Action: 1/25/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

3. [112nd] H.R.427: To amend the Internal Revenue Code of 1986 to provide a 5-year recovery period for computer-based gambling machines.
Sponsor: Rep Heller, Dean [NV-2] (introduced 1/25/2011)      Cosponsors (2)
Committees: House Ways and Means
Latest Major Action: 1/25/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

4. [112nd] H.R.428: To amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services.
Sponsor: Rep Heller, Dean [NV-2] (introduced 1/25/2011)      Cosponsors (3)
Committees: House Ways and Means
Latest Major Action: 1/25/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

5. [112nd] H.R.436: To amend the Internal Revenue Code of 1986 to repeal the excise tax on medical devices.
Sponsor: Rep Paulsen, Erik [MN-3] (introduced 1/25/2011)      Cosponsors (41)
Committees: House Ways and Means
Latest Major Action: 1/25/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

6. [112nd] H.R.445: To amend the Internal Revenue Code of 1986 to make permanent the deduction of State and local general sales taxes.
Sponsor: Rep Young, C.W. Bill [FL-10] (introduced 1/25/2011)      Cosponsors (9)
Committees: House Ways and Means
Latest Major Action: 1/25/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

7. [112nd] S.12: A bill to amend the Internal Revenue Code of 1986 to provide additional tax relief for private sector job creation, and for other purposes.
Sponsor: Sen Portman, Rob [OH] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

8. [112nd] S.13: A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.
Sponsor: Sen Chambliss, Saxby [GA] (introduced 1/25/2011)      Cosponsors (5)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

9. [112nd] S.22: A bill to amend the Internal Revenue Code of 1986 to permanently extend and expand the additional standard deduction for real property taxes for nonitemizers.
Sponsor: Sen Gillibrand, Kirsten E. [NY] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

10. [112nd] S.24: A bill to amend the Internal Revenue Code of 1986 to permanently extend the election to deduct State and local sales taxes.
Sponsor: Sen Cantwell, Maria [WA] (introduced 1/25/2011)      Cosponsors (5)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

11. [112nd] S.26: A bill to amend the Internal Revenue Code of 1986 to repeal the percentage depletion allowance for certain hardrock mines, and to use the resulting revenues from such repeal for deficit reduction.
Sponsor: Sen Shaheen, Jeanne [NH] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

12. [112nd] S.30: A bill to amend the Internal Revenue code of 1986 to provide an additional year for the extension of the placed in service date for the low-income housing credit rules applicable to the GO Zone.
Sponsor: Sen Landrieu, Mary L. [LA] (introduced 1/25/2011)      Cosponsors (5)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

13. [112nd] S.45: A bill to amend the Internal Revenue Code of 1986 to provide for the taxation of income of controlled foreign corporations attributable for imported property.
Sponsor: Sen Whitehouse, Sheldon [RI] (introduced 1/25/2011)      Cosponsors (6)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

14. [112nd] S.57: A bill to amend the Internal Revenue Code of 1986 to modify the application of the tonnage tax on certain vessels.
Sponsor: Sen Inouye, Daniel K. [HI] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

15. [112nd] S.84: A bill to amend the Internal Revenue Code of 1986 to allow refunds of Federal motor fuel excise taxes on fuels used in mobile mammography vehicles.
Sponsor: Sen Vitter, David [LA] (introduced 1/25/2011)      Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

16. [112nd] S.85: A bill to amend the Internal Revenue Code of 1986 to reduce the maximum rate of tax on the income of corporations to 20 percent.
Sponsor: Sen Johanns, Mike [NE] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

17. [112nd] S.88: A bill to amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain stem cell research expenditures.
Sponsor: Sen Vitter, David [LA] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

18. [112nd] S.93: A bill to amend the Internal Revenue Code of 1986 to allow expenses relating to all home schools to be qualified education expenses for purposes of a Coverdell education savings account.
Sponsor: Sen Vitter, David [LA] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

19. [112nd] S.94: A bill to amend the Internal Revenue Code of 1986 to provide a tax deduction for itemizers and nonitemizers for expenses relating to home schooling.
Sponsor: Sen Vitter, David [LA] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

20. [112nd] S.100: A bill to amend the Internal Revenue Code of 1986 to extend and modify the railroad track maintenance credit.
Sponsor: Sen Ensign, John [NV] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

21. [112nd] S.101: A bill to amend the Internal Revenue Code of 1986 to improve the operation of employee stock ownership plans, and for other purposes.
Sponsor: Sen Ensign, John [NV] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

22. [112nd] S.106: A bill to amend the Internal Revenue Code of 1986 to repeal the excise tax on telephone and other communications services.
Sponsor: Sen Ensign, John [NV] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

23. [112nd] S.107: A bill to amend the Internal Revenue Code of 1986 to treat income earned by mutual funds from exchange-traded funds holding precious metal bullion as qualifying income.
Sponsor: Sen Ensign, John [NV] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

24. [112nd] S.110: A bill to amend the Internal Revenue Code of 1986 to promote charitable donations of qualified vehicles.
Sponsor: Sen Ensign, John [NV] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

25. [112nd] S.141: A bill to amend the Internal Revenue Code of 1986 to expand the Coverdell education savings accounts to allow home school education expenses, and for other purposes.
Sponsor: Sen Vitter, David [LA] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

26. [112nd] S.143: A bill to amend the Internal Revenue Code of 1986 to clarify the treatment of church pension plans, and for other purposes.
Sponsor: Sen Hutchison, Kay Bailey [TX] (introduced 1/25/2011)      Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

27. [112nd] S.146: A bill to amend the Internal Revenue Code of 1986 to extend the work opportunity credit to certain recently discharged veterans.
Sponsor: Sen Baucus, Max [MT] (introduced 1/25/2011)      Cosponsors (3)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

28. [112nd] S.155: A bill to amend the Internal Revenue Code of 1986 to provide an enhanced credit for research and development by companies that manufacture products in the United States.
Sponsor: Sen Kohl, Herb [WI] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

29. [112nd] S.157: A bill to amend the Internal Revenue Code of 1986 to provide an investment credit for solar light pipe property, and for other purposes.
Sponsor: Sen Kohl, Herb [WI] (introduced 1/25/2011)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

30. [112nd] S.160: A bill to amend the Internal Revenue Code of 1986 to increase the credit for employers establishing workplace child care facilities, to increase the child care credit to encourage greater use of quality child care services, to provide incentives for students to earn child care-related degrees and to work in child care facilities, and to increase the exclusion for employer-provided dependent care assistance.
Sponsor: Sen Boxer, Barbara [CA] (introduced 1/25/2011)      Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

31. [112nd] S.166: A bill to amend the Internal Revenue Code of 1986 to permanently extend and expand the charitable deduction for contributions of food inventory.
Sponsor: Sen Lugar, Richard G. [IN] (introduced 1/25/2011)      Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 1/25/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

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