House Passes Combined Financial Bailout/Tax Extenders Bill, 263-171

The House Today passed by a 263-171 vote a bill (now H.R. 1424, the Emergency Economic Stabilization Act) that combines the financial bailout bill that failed in the House with a bill that extends a variety of expiring tax cuts (formerly H.R. 6049 (Legislative Text; House Report; CRS Summary)). Democrats voted 172-63 in favor the bill; Republicans opposed it by a 108-91 vote.

The three tax provisions in the bailout portion of the bill would:

• Treat gain or loss from the sale or exchange of preferred stock by financial institutions as ordinary income or loss
• Impose special rules for tax treatment of executive compensation of employers participating in the Troubled Assets Relief Program (TARP)
• Exclude discharges of acquisition indebtedness on principal residences from gross income

The revenue offsets in the tax extenders portion of the bill would:

• Limit the deduction for income attributable to domestic production of oil and gas
• Eliminate the different treatment of foreign oil and gas extraction income and foreign oil-related income for foreign tax credit purposes
• Require broker reporting of customer’s basis in securities transactions
• Extend the 0.2% FUTA surtax
• Increase and extend the Oil Spill Liability Trust Fund tax
• Impose a new tax on the nonqualified deferred compensation from certain offshore tax indifferent parties

Documents:

• Legislative Text
• One-Page Summary
• Section-by-Section Analysis
• Joint Committee on Taxation Explanation of Tax Provisions of Bailout Bill (JCX-79-08)
• Joint Committee on Taxation Revenue Estimate of Tax Provisions of Bailout Bill (JCX-78-08)
• Senate Finance Committee Summary of Tax Proposals in Troubled Asset Relief Program
• Senate Finance Committee Summary of Energy Tax Provisions
• Senate Finance Committee Summary of Other Tax Provisions