Daily Tax Update - June 18, 2012: Congress to Focus on Non-Tax Issues This Week

CONGRESS TO FOCUS ON NON-TAX ISSUES THIS WEEK: Congress is back in session for a two-week period until their July Fourth recess. Tax issues are on the backburner this week as Congress focuses on bills to renew surface transportation programs and a student loan interest-rate reduction bill.  Congress is also expected to focus on several reauthorization measures.

REPORT ISSUED ON EMPLOYEE STOCK OPTIONS:  The Congressional Research Service explored the advantages and disadvantages of employee stock options, explained the tax treatments involved, and described key laws and regulations concerning such options.  The report explains the "book-tax gap" as it relates to stock options and Sen. Carl Levin's bill (S. 2075).  Levin’s bill would ban certain stock option tax deductions and curb uses of offshore tax havens by companies as a way to raise $155 billion for deficit reduction, the payroll tax cut, or other key policies.

  • The report can be accessed here.

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