Pardon Our Dust
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NOTABLE QUOTABLE
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“We really haven’t talked much about the trust funds in our conversations in preparation for the blueprint. I think it probably has to be a part of that discussion, but, I mean we’re still having conversations on some questions that haven’t been decided yet before the blueprint’s finalized … The blueprint should encompass all of tax reform, and so I think you do have to have conversations about trust funds.” – Rep. Charles Boustany (R-LA) |
Top House GOP tax writers are planning to unveil their much anticipated tax reform blueprint this month. Based on chatter from Capitol Hill, the blueprintcould come as early as the week of June 20. Rep. Boustany, chairman of the House Ways and Means Tax Policy Subcommittee, told reporters last week that theblueprint should consider the question of how to keep infrastructure trust funds solvent in the long term.
LEGISLATIVE LANDSCAPE
Senate Finance to Hold Energy Tax Hearing. On June 14, Senate Finance Democrats will get their wish of holding a fullcommittee hearing to discuss the country’s energy tax policy. The panel’sDemocrats will likely focus on alternative energy tax credit provisions,especially in terms of a fix to the investment tax credit that received afive-year renewal in the year-end deal last December. As a refresher, thefive-year…
Roskam’s IRS Donor Disclosures Bill Hits the Floor. This week, the House is expected to take up consideration of the Preventing IRS Abuse and Protecting Free Speech Act (H.R. 5053). The bill, introduced by Rep. Peter Roskam (R-IL),would prohibit the IRS from collecting the identity of donors that contribute to certain not-for-profit organizations (i.e. 501(c)s). The bill specificallyprohibits the collection of such information under Schedule B of Form 990.
Roskam’s bill provides two exceptions to the prohibition…
Corporate Tax Receipts Down — Here’s Lookin’ at You, Extenders. According to the Congressional Budget Office’s (CBO) monthly budget review for May, corporate income tax receipts fell by about 11 percent (or $21 billion)between Oct 2015 and May 2016, the first eight months of FY2016. CBO analysts are attributing the decline to…
Senate Finance Aide: Tough to Cut Corporate Rate. Speaking at the June 7 tax panel at the American Enterprise Institute (AEI),Christopher Hanna, a top Republican tax staffer, said options to help cutthe corporate tax rate are few and far between. The cost of paying for areduction poses the biggest headache to lawmakers: cutting the rate to 25percent would cost upwards of $1 trillion. Hanna said lawmakers haveentertained…
But the Tax Foundation Said… The day before Hanna spoke at AEI aboutthe merits of Hatch’s corporate integration proposal, the Tax Foundationissued a report examining 86 proposed ways to reform the tax code. Corporateintegration via a dividends paid deduction would cost the federal governmentabout…
REGULATORY WORLD
IRS Re-launches “Get Transcript” Program. The IRS re-launched its “Get Transcript”online service last week after the agency was forced to temporarily pull the program due to a security breach that affected over 1 million taxpayers. Thenew program has enhanced security features, including a two-step authentication process. Under the new process, the IRS will…
Timing of Debt-Equity Rules. At the OECD International Tax Conference on June 7, the IRS Commissioner John Koskinen indicated that the timeline for the final earnings-stripping rulesis still to be decided. The commissioner indicated that the IRS will continue to hear feedback and accept comment letters from the business community untilJuly 7. Industry groups continue to push for an October deadline for the finalization of the regulations.
The European Parliament Passes Measures to Curb Tax Evasion. The European Parliament adopted a package of six measures to help curb tax evasion, earlier last week in a 486-88 plenary session vote. The measures arepart of a larger anti-tax avoidance directive introduced in January. The six proposals are listed below…
EU Financial Transactions Tax Continues To Stall . The self-imposeddeadline of implementing the European Financial Transactions Tax (FTT) by2017 will be difficult to meet, according to a report prepared by officialsin the EU Council of Ministers. The original 11 EU countries continue to besplit on…
LOOKING AHEAD
Congressional Activity
Tuesday, 6/14
Senate Finance Committee
The full committee holds a hearing on “Energy Tax Policy in 2016 and Beyond.”Read more.
Wednesday, 6/15
House Ways and Means Committee
The full committee meets to mark up a series of bills related to child welfare and health care improvements.Read more.Senate Special Committee on Aging
The full committee hearing on innovations to promote Americans’ financial security.Read more.Senate Appropriations Committee
The Financial Services and General Government Subcommittee holds a markup of the “Financial Services and General Government Appropriations Act, FY2017.”Read more.
Thursday, 6/16
Senate Appropriations Committee
The full committee markup of the “Interior, Environment, and Related Agencies Appropriations Act, 2017”; and the “Financial Services and General GovernmentAppropriations Act, 2017.” Read more.
Agency Activity
Tuesday, 6/14
Federal Reserve Board
The Federal Open Market Committee (FOMC) holds a closed meeting, beginning at 9 a.m. The FOMC is the policy-making arm of the Federal Reserve, June 14-15.
Wednesday, 6/15
Internal Revenue Service
The IRS holds a meeting by teleconference of the Taxpayer Advocacy Panel Toll-Free Phone Line Project Committee on improving customer service at theInternal Revenue Service. For more information, contact Linda Rivera, 202-317-3337.
Thursday, 6/16
Internal Revenue Service
The IRS holds a meeting by teleconference of the Taxpayer Advocacy Panel Taxpayer Communications Project Committee on improving customer service at theInternal Revenue Service. For more information, contact Antoinette Ross, 202-317-4110.
Other Activity
Thursday, 6/16
OECD – Tax Talks Webinar
With a number of important recent and upcoming developments in the OECD’s international tax work, the OECD invites you to join senior members from theOECD’s Centre for Tax Policy and Administration (CTPA) for the latest tax update.Read more.
Friday, 6/17
American Enterprise Institute
AEI, along with Brookings, hosts a discussion on “A New Proposal for Corporate Tax Reform.”Read more.
For listings of all the week’s tax and financial services happenings, read below to find out how you can become a subscriber.
The McGuireWoods’ Tax & Financial Services Policy Group assists clients in understanding how the latest legislative and regulatory proposals anddecisions may impact their business and industry. To learn more about how our team can help you monitor, analyze, and navigate all relevant legislativeand regulatory developments, please contact any of our attorneys and consultants below at (202) 857-1700. For more information on how to subscribe toour weeklyTax Policy Update and tax news alerts, please contact Radha Mohan, rmohan@mwcllc.com, (202) 857-2944.
Dan Chung
Lai King Lam