Daily Tax Update - June 6, 2011: Over 100 House Conservative Republicans Call for Spending Reductions to Resolve Debt Limit Impasse

OVER 100 HOUSE CONSERVATIVE REPUBLICANS CALL FOR SPENDING REDUCTIONS TO RESOLVE DEBT LIMIT IMPASSE: Today, 103 House Republicans sent a letter to House Speaker John Boehner and Majority Leader Eric Cantor calling for a three-pronged approach to spending reductions to resolve the debt limit impasse and avoid a greater debt crisis.

Vice President Biden is scheduled to resume the budget/debt ceiling talks on Thursday.

  • According to the letter, the "Cut, Cap and Balance" proposal calls for:

1. "Cut: We must make discretionary and mandatory spending reductions that would cut the deficit in half next year.

2. Cap: We need statutory, enforceable caps to align federal spending with average revenues at 18% of Gross Domestic Product (GDP), with automatic spending reductions if the caps are breached.

3. Balance - We must send to the states a Balanced Budget Amendment (BBA) with strong protections against federal tax increases and a Spending Limitation Amendment (SLA) that aligns spending with average revenues as described above."

  • The letter can be accessed here
  • Today, Cantor said, "Secretary Geithner feels August 2 is his deadline. I don't question the Secretary of the Treasury other than to say we're trying to get in place real spending reductions - trillions of dollars of spending reductions - if the president wants us to increase the credit limit of this country by trillions of dollars."

TAX BILLS INTRODUCED JUNE 3RD:

1. [112nd] H.R.2120 : To amend the Internal Revenue Code of 1986 to include individuals who have exhausted all rights to emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 as a targeted group for purposes of the work opportunity tax credit. Sponsor: Rep Jackson Lee, Sheila [TX-18] (introduced 6/3/2011)   Cosponsors (None) Committees: House Ways and Means Latest Major Action: 6/3/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.
2. [112nd] H.R.2137 : To amend the Internal Revenue Code of 1986 to authorize an unemployment assistance voucher program. Sponsor: Rep Renacci, James B. [OH-16] (introduced 6/3/2011)   Cosponsors (1) Committees: House Ways and Means Latest Major Action: 6/3/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means

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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