Latest News on Tax Legislation and Tax Reform
March 1, 2013: BNA reports that Senate Finance Committee Chief Tax Counsel says committee members are expected to begin regularly meeting on tax reform and that prospects for tax reform legislation are "good.".
February 25, 2013: JCT: General Explanation of Tax Legislation Enacted in the 112th Congress
February 13, 2013: Ways & Means Committee announces tax reform working groups
February 12, 2013: In State of the Union address, President Obama endorses tax reform as part of deficit reduction.
January 14, 2013: Updated IRS tax tables for 2013
September 11, 2012: Senate Finance Committee releases updated summary of tax extenders bill.
August 22, 2012: CBO releases updated revenue projections
August 2, 2012: House passes HR 6169, a bill to establish an expedited procedure for consideration of tax reform in 2013. To qualify for the expedited process, legislation would have to reduce tax brackets down to two; reduce the corporate rate to at least 20 percent; repeal the AMT; maintain revenues at 18 or 19% of GDP; and move to a territorial tax system. However, the expedited procedures would provide fewer protections than a filibuster-proof budget reconciliation measure. The Senate will not consider the House-passed bill.
August 2, 2012: Senate Finance Committee approves a two-year AMT (Alternative Minimum Tax) patch and tax extenders package (R&E tax credit, deduction for state sales taxes and other expiring provisions.). However, the measure fails to address the fiscal cliff (major tax hikes in early January 2013 when the Bush tax cuts expire). The package costs $205 billion over 10 years, the bulk of which is from the AMT patch. Outlook: Senate could vote on the package in September, but the House has not scheduled action on extenders and, as reported by Congressional Quarterly, may wait until consideration of the larger tax issues after the election.
Documents related to the tax extenders bill JCT Revenue Estimates
CRS Summary of Tax Provisions Expiring in 2012 including the expiring "Bush tax cuts"
August 1, 2012: House passes a one-year extension of Bush tax cuts after rejecting a Democratic proposal to let the cuts expire for individuals earning up to $200k and joint filers earning up to $250k. (The Senate rejected the House approach the previous week.) Summary of the House-passed bill
July 25, 2012: Senate passes legislation (S. 3412) to extend for one year the Bush tax cuts on income up to $200k for individuals and $250k for joint filers, after defeating a Republican alternative to extend the cuts for all income levels. (The House later rejected the Senate approach on August 1.) Statement of Administration Policy on Senate bill
Tax Reform Resources:
August 14, 2012: "Section 179 and Bonus Depreciation"
August 14, 2012: "Research Tax Credit: Current Law and Policy Issues"
August 10, 2012: Washington Post, "Tax Reform is Going to be Really, Really Hard"
July 30, 2012: Comparison of bills to Extend the Bush Tax Cuts
July 25, 2012: "Moving to a Territorial Income Tax: Options and Challenges"
July 18, 2012: "The 2001 and 2003 Bush Tax Cuts and Deficit Reduction" The report estimates that extendng the Bush tax cuts for single filers over $200k and joint filers over $250k would cost $34 billion in 2013 and $931 billion over 10 years (2013-22).
April 17, 2012: "Tax Provisions Expiring in 2012"
March 28, 2012: "Energy Tax Policy Issues in the 112th Congress"
December 16, 2011: "Corporate Tax Reform: Issues for Congress"
July 13, 2011: Tax Policy Options for Deficit Reduction
November 10, 2009: "Economic Stimulus: Issues and Policies" analyzing the impact of tax cuts on the economy.