Tax News

CCH (cch.taxgroup.com) reports:

  The White House is increasing pressure on House and Senate lawmakers to complete work on a comprehensive farm bill by April 25, when a one-week extension of current law expires. Efforts to pass the Farm, Nutrition, and Bioenergy Bill of 2007 (HR 2419) have slowed while lawmakers work out details of a $2.4 billion agricultural tax package. Senate lawmakers have offered, but the House has yet to respond to, a compromise package of tax breaks to end the stalemate. Meanwhile, the White House is signaling that a one-year extension of current law may be the final outcome of the farm legislation.

  During an early evening conference committee meeting on April 22, House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., and House Agricultural Committee Chairman Collin C. Peterson, D-Minn., said House lawmakers are close to an agreement with their Senate counterparts. Rep Earl Pomeroy, D-N.D., said lawmakers prefer not to accept a one-year extension because the farm bill policies in HR 2419 are far superior to current law. As the negotiations move closer to a conclusion, lawmakers said they might seek another one-week extension to reach an agreement.

White House Opposition

  White House Press Secretary Dana Perino on April 23 warned that Congress is running out of time to reach an acceptable agreement on the farm bill. President Bush on April 22 strongly criticized the current proposal and urged Congress to extend current law "for at least one year."

  In a written statement, Bush contended that the proposed $16 billion in spending increases would be reached, in part, by "budgetary gimmicks" and unacceptable tax provisions, including tax compliance provisions under consideration by House and Senate conferees. On April 18, the president signed a one-week extension of current law which expires on April 25 (TAXDAY, 2008/04/21, M.1). Bush said there are no signs that conferees are moving toward agreement on an acceptable package during the short-term extension period.

  By Stephen K. Cooper and Paula Cruickshank, CCH News Staff