Daily Tax Update - April 1, 2014: Finance to Hold Mark Up on Extenders Package This Week

FINANCE TO HOLD MARK UP ON EXTENDERS PACKAGE THIS WEEK:  On April 3, the Senate Finance Committee will mark up dozens of “tax extenders” that have expired or will expire at the end of this year.  The bill is entitled, the “Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act.”  The Joint Committee on Taxation estimates that the ten-year cost of renewing the provisions would result in $67.4 billion in lost revenue.

This afternoon, Chairman Wyden said that several additional provisions would be included in the mark up including: look-through treatment of payments between related controlled foreign corporations under the foreign personal holding company rules, special expensing rules for film and television productions, and an extension of the Health Coverage Tax Credit. 

More information on the additional provisions can be accessed via: extenders.pdf

Chairman Wyden said, “This bipartisan extenders package is the product of a Finance Committee that came together to provide needed certainty to the economy, protect jobs and maintain important priorities for working families. With that said, I am determined this will be the last extenders bill on my watch. It’s high time we focus on creating a new, 21st-century tax code, because the status quo is unacceptable.”

The Chairman’s Mark can be found here. A summary can be found here.

On April 8, the House Ways and Means Committee will hold a hearing on those “expired business tax provisions that would be extended by the tax reform discussion draft released on February 26, 2014, with a particular emphasis on how permanent tax policy can promote certainty for American businesses and generate additional economic growth.”

REP. RYAN’S “PATH TO PROSPERITY” BUDGET BLUEPRINT RELEASED: Today, House Budget Committee Chairman Paul Ryan released his Fiscal Year 2015 budget blueprint for “expanding opportunity by growing the economy and providing families with a fair, simple tax code to boost wages and create jobs.” 

Ryan’s budget plan contains the following elements for tax reform, but does not endorse any particular plan.

Ryan’s budget plan proposes to:

  •         “Simplify the tax code to make it fairer to American families and businesses.
  •         Reduce the amount of time and resources necessary to comply with tax laws.
  •         Substantially lower tax rates for individuals.
  •         Consolidate the current seven tax brackets.
  •         Repeal the Alternative Minimum Tax.
  •         Reduce the corporate tax rate to 25 percent.
  •         Adopt a more competitive system of international taxation.”

Additional information can be accessed via: http://budget.house.gov/

SENATE FOREIGN RELATIONS COMMITTEE APPROVES TAX TREATY AMENDMENTS:  Today, the Senate Foreign Relations Committee unanimously approved several tax treaties and protocols, including those with provisions to increase information exchange.

The Committee approved treaties between the U.S. and Switzerland, Luxembourg, Hungary and Chile and also approved the protocol amending the Convention on Mutual Administrative Assistance in Tax Matters, done at Paris May 27, 2010.