Daily Tax Update - November 30, 2012: Boehner: Debt Talks In A "Stalemate"

BOEHNER:  DEBT TALKS IN A "STALEMATE":  Today, House Speaker John Boehner said that negotiations to resolve the fiscal cliff crisis were at a "stalemate."   Boehner said, "There’s a stalemate. Let’s not kid ourselves. Right now, we’re almost nowhere."  Yesterday, Treasury Secretary Tim Geithner presented Congressional leaders with a preliminary offer based on the president’s budget that included $1.6 trillion in tax increases and $400 billion in cuts to entitlement spending. Boehner said the offer was "not a serious proposal."

  • Today, in a remarks, President Obama said that if Congress did not extend tax cuts for the middle class by January 1st, it would be like receiving a "lump of coal" for the holiday season.  Obama said, "That's a Scrooge Christmas."  Obama added, "This is not some run-of-the-mill debate. We've got important decisions to make that are going to have a real impact...If Congress does nothing, every family in America will see their taxes go up on January 1st."  Obama continued, "The key there is that the American people have to be involved. We all know you can't take anything for granted when it comes to Washington."  Obama said that he is "hopeful" that an agreement can be reached stating, "We are starting to see a few Republicans come around in Congress."

IRS ISSUES PROPOSED REGS ON NET INVESTMENT INCOME TAX:  Today, the IRS issued proposed regulations (REG-130507-11) that provide guidance under section 1411, as added by the Health Care and Education Reconciliation Act of 2010, regarding net investment income tax. Section 1402(a)(1) of the Health Care and Education Reconciliation Act of 2010 added new section 1411 to the Code effective for taxable years beginning after December 31, 2012. The proposed regulations affect individuals, estates, and trusts.  A detailed summary will be provided in a future edition of the Daily Tax Update.

WAYS AND MEANS SELECTS NEW REPUBLICAN MEMBERS: Today, Ways and Means Chairman Dave Camp announced the new Republican members of the Committee.  They are: Tim Griffin (AR); Mike Kelly (PA); Tim Scott (SC) and Todd Young (IN).

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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