Tax News

CCH (cch.taxgroup.com) reports:

  House lawmakers approved the Tax Extenders Bill of 2009 (HR 4213) on December 9. The 241-to-181 vote to pass the measure came after Democrats spent the day defending their decision to include $31 billion in new taxes to offset the extension of expiring tax provisions. Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., said that extending the tax provisions would boost job creation during the recession. However, Rep. Tom Price, D-Ga., speaking on behalf of the House Republican Study Committee, noted that the extensions in the bill are long-standing policy and should not be offset by revenue increases.

  "These tax extensions, such as the research and development credit for businesses, are simply a continuation of long-standing policies," Price said. "The argument that they need to be offset with new tax hikes is just an excuse to push more taxpayer money into federal coffers." But Rangel said Democrats are simply trying to stop people from taking unfair advantage of the tax code, particularly investment managers who would face higher taxes on income from carried interest under the legislation.

FAA Extension

  In other tax action, House lawmakers on December 8 passed the Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II (HR 4217) by a voice vote. The measure would provide a three-month extension for the financing and spending authority of the Airport and Airway Trust Fund, which expires on December 31. House Transportation Committee Chairman James L. Oberstar, D-Minn., said the aviation taxes support the trust fund, which funds a substantial portion of the FAA's budget. "With an uncommitted cash balance of just $251 million at the end of FY 2009, any lapse in the aviation taxes could put the solvency of the trust fund at risk," Oberstar said. He noted that the previous long-term FAA reauthorization act, the Vision 100--Century of Aviation Reauthorization Act (P.L. 108-176) expired on September 30, 2007. The House has passed a long-term funding bill, but the Senate has not, resulting in the need for a series of short-term extension acts that, unfortunately, continues to this day, Oberstar said.

  By Stephen K. Cooper, CCH News Staff

Ways and Means Press Release: House Passes Tax Extenders Act

Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II, as Passed by the House on December 8, 2009, HR 4217