Tax News

CCH (cch.taxgroup.com) reports:

  Frustration at the lack of Senate movement on the House-passed tax extenders and energy bill (HR 7060) prompted House Ways and Means Chairman Charles B. Rangel, D-N.Y., on September 28 to separate the measure into two tax bills. Rangel and House Majority Leader Steny Hoyer, D-Md., told reporters that the two new tax bills were being introduced in hopes of persuading the Senate to negotiate with the House. Rangel introduced the Energy Improvement and Extension Act of 2008 (HR 7201) and the Temporary Tax Relief Act of 2008 (HR 7202). The House could take up the two new tax bills on September 29.

  The new legislation comes on the heels of HR 7060, the Renewable Energy and Job Creation Tax Act of 2008, which passed the House on September 26. However, Senate lawmakers immediately refused to accept the measure. Instead, they insisted that House lawmakers accept the bipartisan Senate-passed bill HR 6049.

  Rangel said HR 7201 and HR 7202 are mostly similar to the provisions included in HR 7060, except they add rural school provisions and make minor changes to the energy provisions. HR 7060 passed the House by a vote of 257 to 166.

  Hoyer and Rangel expressed their frustration at the unwillingness of the Senate to compromise on the tax legislation. They said House lawmakers do not want to accept the Senate positions, or bow to the necessity of getting 60 votes to pass legislation in the Senate. Hoyer said the House pay-as-you-go (PAYGO) rules are important to uphold, despite the possibility of ending the 110th Congress without ultimately passing the tax legislation. Hoyer also threatened that the House might decide to slow its consideration of Senate legislation in retaliation.

  By Stephen K. Cooper, CCH News Staff

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