Daily Tax Update - July 6, 2012: Finance Committee to Discuss Economic Opportunity and Tax Reform

FINANCE COMMITTEE TO DISCUSS ECONOMIC OPPORTUNITY AND TAX REFORM:  On July 10, the Senate Finance Committee will hold a hearing entitled "Boosting Opportunities and Growth Through Tax Reform: Helping More Young People Achieve The American Dream."  The hearing will examine the role the tax code can play in promoting economic opportunity for young Americans.

  • The witnesses will be:
    • Dr. Katherine S. Newman, James B. Knapp Dean of The Zanvyl Krieger School of Arts and Sciences, The Johns Hopkins University
    • Dr. Miles Corak, Professor, Graduate School of Public and International Affairs, University of Ottawa
    • Dr. Lars J. Lefgren, Associate Professor, Department of Economics, Brigham Young University
    • Ms. Erin Currier, Project Manager, Economic Mobility Project, The Pew Charitable Trusts
    • Dr. C. Eugene Steuerle, Institute Fellow and Richard B. Fisher Chair, The Urban Institute

HEARING ON THE TAX RAMIFICATIONS OF THE SUPREME COURT’S RULING ON HEALTH CARE:  The House Ways and Means Committee will hold a hearing on July 10 on the tax ramifications of the Supreme Court's ruling on health care.  The hearing will "explore the implications of the Supreme Court's ruling that the individual mandate is constitutional, particularly as it relates to Congress’s authority to lay and collect new taxes."

  • In announcing the hearing, Committee Chairman Dave Camp stated, "I strongly disagree with the Court’s decision and its holding that Congress can tax Americans who choose not to purchase government-approved health insurance.  This ruling sets a dangerous precedent with potentially enormous consequences.  As the tax-writing committee of the U.S. House of Representatives – where, under the Constitution, all revenue measures must originate – we have a responsibility to fully understand the Court's interpretation of Congress’s taxing authority and what that means for potential actions taken by future Congresses, the future of our country and the relationship that the government has with the American people."

MISCELLANEOUS GUIDANCE RELEASED:

Revenue Ruling 2012-20 provides the Applicable Federal Rates for July 2012.

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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