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Pepperdine University School of Law

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Friday, October 3, 2008

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:

http://taxprof.typepad.com/taxprof_blog/2008/10/house-passes-co.html

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