Daily Tax Update - February 26, 2013: Boehner Gives Camp “Green Light” For Tax Reform

BOEHNER GIVES CAMP “GREEN LIGHT” FOR TAX REFORM:  Today, House Ways and Means Committee Chairman Dave Camp said that House Speaker John Boehner will use H.R. 1 for use as the legislative vehicle for a tax reform proposal.  Camp said, “That means he's reserved the number one bill for tax reform.”  Camp added that it "signals it is a priority to him [Boehner] and to Congress." Camp added that the Speaker encouraged him to reform the tax code, not slow down efforts.  Camp said, “No, I got a green light."  Camp said that it is his intention to hold a vote in the committee this year.

• A spokesman for Boehner said, “Reforming our tax code to get our economy going again and create jobs is a top priority for House Republicans.”

• In remarks today at his Senate Finance confirmation hearing, Jack Lew said, "If there were a lot of easy decisions, tax reform would have happened a long time ago."

SENATE FINANCE COMMITTEE APPROVES LEW FOR TREASURY SECRETARY:  Today, the Senate Finance voted to approve Jacob “Jack” Lew's nomination for Treasury Secretary.  The full Senate is expected to vote on Lew’s nomination later this week.

SENATE TO VOTE ON COMPETING PROPOSALS TO STOP SEQUESTRATION:  The Senate is expected to hold votes Thursday on competing proposals by Democrats and Republicans to avert the across-the-board cuts in Federal spending scheduled to take effect Friday.  Neither proposal is expected to garner the 60 votes necessary to pass the Senate.  The House and Senate are not in session Friday.

  • The Republican plan would maintain the level of spending reductions but give President Obama more options to minimize their impact on military preparedness and other government services, such as air traffic control and airport security screening. The Democrat’s plan would replace $85 billion in cuts through the September 30 end of fiscal 2013, plus an additional $25 billion in cuts to replace the sequester through the end of December.
  • A temporary measure extending government spending expires March 27, and failure to act would cause a partial government shutdown.

MISCELLANEOUS GUIDANCE RELEASED:

Notice 2013-19 provides guidance on whether, for purposes of applying the limitation set forth in the flush language of § 807(d)(1) (the statutory reserve cap), deficiency reserves are included in the amount taken into account with respect to a life insurance contract in determining statutory reserves under § 807(d)(6).