Daily Tax Update - December 1, 2011: Senate Cloture Vote on Payroll Tax Extension Tomorrow

SENATE CLOTURE VOTE ON PAYROLL TAX CUT EXTENSION FRIDAY:  On Friday, the Senate will hold a cloture vote on the Democrats’ bill to extend the payroll tax cut.  It is unclear when a vote may occur on the Republican alternative.  The Republican plan to fund the payroll tax cut would reduce the federal workforce through attrition, temporarily freeze federal employees' pay, and reduce benefits for millionaires under Medicare, food stamps and unemployment insurance.  Neither plan has sufficient votes to advance.  A compromise is expected to be brokered since the Obama administration has expressed a willingness to negotiate over how to pay for the payroll tax extension.

  • House Speaker John Boehner said, "We’re going to continue to seek common ground on this issue.  There’s no debate, though, about whether these extensions ought to be paid for.  The president’s called for them to be paid for.  Democrats here have called for them to be paid for.  So if in fact we can find common ground on these extensions, I think you can take to the bank the fact that they will be paid for."

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.

Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.