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:
- 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
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