Tax News

CCH (cch.taxgroup.com) reports:

  President Obama on August 7 signed legislation to keep the Highway Trust Fund solvent through the end of fiscal year 2009. The bipartisan measure, HR 3357, which would transfer $7 billion from the General Fund to the Highway Account of the Highway Trust Fund, passed the Senate by a vote of 79-to-17 on July 30 and passed the House by a vote of 363 to 68 on July 29 (TAXDAY, 2009/07/30, C.2). The measure will also provide essential loans to the Unemployment Trust Fund (UTF) to meet a projected shortfall by early August. According to a Ways and Means press release issued late on July 29, the loans are repayable with interest, and the Congressional Budget Office has scored the legislation as having no cost to the federal treasury.

  The president also signed HR 3435, a bill to provide $2 billion in emergency supplemental appropriations for the Consumer Assistance to Recycle and Save Program, aka the Cash-for-Clunkers program. The program provides dealers with refund vouchers worth up to $4,500 when consumers trade in older vehicles with fuel economy ratings of 18 miles per gallon or less. The Senate approved the measure on August 6 by a vote of 60-to-37 (TAXDAY, 2009/08/07, C.1). The Senate voted down six amendments that would have stalled the bill and caused House and Senate members to negotiate a compromise version after the August recess. The House passed the measure before leaving for its recess on July 31 (TAXDAY, 2009/08/03, C.1).

  By Stephen K. Cooper, CCH News Staff

Legislation to Restore Sums to the Highway Trust Fund, Enrolled, as Signed by the President on August 7, 2009, HR 3357

Legislation Making Supplemental Appropriations for Fiscal Year 2009 for the Consumer Assistance to Recycle and Save Program, as Passed by the House on July 31, 2009, HR 3435