Tax News

CCH (cch.taxgroup.com) reports:

  After the Senate agreed to begin debate on health care reform on November 21 (TAXDAY, 2009/11/23, C.1), lawmakers took to the airwaves early the next morning to debate the legislation's prospects for passage. Speaking on CBS News' "Face the Nation," Sen. Jon Kyl, R-Ariz., and Sen. Charles E. Schumer, D-N.Y., disagreed over whether nonwealthy Americans would have to pay more taxes if the health care bill becomes law. Kyl maintained that taxes on pharmaceuticals and medical devices in the bill would be passed on to average consumers, while Schumer said only those earning over $250,000 would pay taxes on some cosmetic medical procedures, like botox.

  On NBC's "Meet the Press," Sen. Kay Bailey Hutchinson, R-Tex., said that GOP lawmakers would try to stop the bill from passing by telling Americans that their taxes are going to rise, their premiums are going to increase and their Medicare benefits are going to be cut. However, Sen. Dianne Feinstein, D-Calif., said lawmakers will be able to make changes once the bill becomes law, noting that the benefits and tax credits in the health reform would be incremental.

Economy

  Meanwhile, on the economic front, the Obama administration said it will continue to work with Congress to see what can be done to stimulate the economy. White House officials, however, have not indicated support for a second stimulus package. As for a stock transaction tax proposed by some in Congress (TAXDAY, 2009/11/20, C.2), the administration is not prepared to support the proposal, according to White House Deputy Press Secretary Jennifer Psaki. Lawmakers such as Rep. Peter DeFazio, D-Ore., have suggested taxing stock transactions to raise money to provide for unemployment benefits, infrastructure projects and other tax breaks for businesses.

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