Daily Tax Update - October 30, 2013: Budget Conference Convenes First Meeting

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS  NOVEMBER 12

Budget Conference Convenes First Meeting:  Today, the first formal meeting of the bipartisan group of budget negotiators met in hopes of resolving the differences between the House and Senate FY 2014 budget bills and averting another shutdown in January.  Today’s meeting focused on opening statements by the 29 members of the committee.  The negotiators have until December 13 to submit a report of their recommendations.  The next meeting will occur on November 13.

Several weeks ago, House Budget Chairman Paul Ryan said that the outcome would not be “a grand bargain.”  Ryan said that he would seek “modest reforms to entitlement programs” and modest changes to the tax code.  In his opening statement today, Ryan said, “Nobody has to abandon their principles.  Instead, we need to find out where our principles overlap.  We all agree Washington isn’t working.  We all agree there’s a smarter way to cut spending.  And we all agree our economy could be doing a lot better.  We won’t resolve all our differences here.”  Ryan added, “We won’t solve all our problems.  But we can make a good start.  And we should, because we owe it to the country.” 

In her opening statement, Senate Budget Chair Patty Murray said, “I agree with those who say the very least this conference should be able to do — the absolute minimum — is find a way to come together around replacing sequestration and setting a budget level for at least the short-term.  This won’t be easy — the House and Senate budgets are very different even for just this year.  But if both sides are willing to move out of their partisan corners and offer up some compromises, I am confident it can be done.  So let’s start with something we do agree on.  Democrats and Republicans have said replacing sequestration should be a priority for this budget conference.”

On the issue of taxes, Ryan said, “If this conference becomes an argument about taxes, we’re not going to get anywhere.”  Ryan added, “The way to raise revenue is to grow the economy.  We need to write a tax code that encourages economic growth — not stifles it.”

House Minority Leader Nancy Pelosi said, “New revenue must be part of any bipartisan agreement to eliminate the sequester. . . . Our position is that we're going to the table in order to reduce the deficit, grow the economy, create jobs, end the sequester — revenue needs to be on the table.”

Tax Bill Introduced October 29:

H.R.3378: To amend the Internal Revenue Code of 1986 to extend the nonbusiness energy property credit to include the insulation component of insulated siding. 
Sponsor: Rep Welch, Peter [VT] (introduced 10/29/2013)      Cosponsors (1) 
Latest Major Action: 10/29/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.