Daily Tax Update - January 23, 2012: State Of The Union Will Offer "Blueprint" For The Economy

STATE OF THE UNION WILL OFFER "BLUEPRINT" FOR THE ECONOMY:  President Obama will lay out a "blueprint for an economy that's built to last" in tomorrow night’s State of the Union address.  Obama’s remarks are expected to focus on manufacturing, job creation, domestic energy production, education, and middle-class values while calling for higher taxes on the wealthy.  White House Press Secretary Jay Carney said last week that Obama’s speech "will be heavy on substance."

  • Obama is also expected to mention his "insourcing" of American jobs initiative highlighted earlier this month.  Tax reform may also be discussed.
  • In previewing his remarks, Obama said, "We can go in two directions. One is towards less opportunity and less fairness. Or we can fight for…building an economy that works for everyone, not just a wealthy few."
  • Yesterday, in an interview, House Speaker John Boehner insisted that the next year should be spent on policy, not politics, and said that it's "pathetic" if the President tries to offer the "same old" ideas at tomorrow’s State of the Union that he's been offering in the past three years.   Boehner said, "They [Obama’s policies] made it worse. And if that's what the president is going to talk about Tuesday night, I think it's pathetic. I think it's time for the president to listen to his own jobs council. It's time to go in a new direction."  Boehner said that the "regulatory nightmare that's coming out of Washington" is "serving as a wet blanket over our economy."  Boehner added. "We need to work to fundamentally change our tax code."  Boehner added that Republicans support fundamental reform of the tax code, Medicare reform, an energy and infrastructure bill that aims to use royalties to pay for repairs to roads and bridges.  Boehner added, "So there's a lot of work that is going to be done. And if the president will listen to his own jobs council, there will be an awful lot of unanimity between the bills that we're passing and what his own jobs council is calling for."

MISCELLANEOUS GUIDANCE RELEASED:

Revenue Ruling 2012-6 sets forth the prevailing state assumed interest rates that are used by insurance companies to determine their reserves under section 807 for contracts that are issued in 2011 and 2012. The ruling supplements, in part, Revenue Ruling 92-19.

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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