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Online Home | Site Search | Tax News & Views |Tax Increases to be Proposed to Pay for IRS Restructuring BillThursday, March 26, 1998 OnLine The tax increases needed to offset the expense of restructuring the Internal Revenue Service will be unveiled late March 26 as part of "a conceptual mark" that outlines the proposal, but does not include legislative language, congressional aides said March 26. No precise estimate of the bill’s cost currently is available, but its price tag will be in the $20 billion range over 10 years, Senate Finance Committee Chairman Bill Roth, R-Del., said March 26 at a press conference. It is unclear whether the offsets will cover all the bill’s cost. Senate Minority Leader Tom Daschle, D-S.D., said Democrats plan to raise a procedural point of order against the IRS restructuring bill when it reaches the Senate floor. "I don’t think you can offset the costs of this bill in the manner Sen. Roth proposed," Daschle told reporters. The Budget Act sets up a procedure under which senators can object to a bill they believe violates Congress’ accounting rules, by raising a point of order that, if sustained by the Senate, would effectively kill the measure. If Daschle’s objection is ruled correct, Roth would need either sixty votes to overcome the point of order, or would have to tinker with the bill to ensure that it conforms to the Budget Act rules requiring that the bill’s revenue loss be offset. |
Markup to begin March 31 If all goes according to plan, the Senate Finance Committee will begin marking up the bill March 31. It hopes to complete work on the measure April 1. Senate Finance Committee members that want to amend the bill during markup will have to submit their amendments by March 30. The Senate Finance Committee usually works in a more bipartisan manner than does the House Ways and Means Committee, so only a few amendments to the bill should be expected. Transit Tax Bill Approved By House: The House Ways and Means Committee March 26 approved by voice vote an extension of the gasoline excise tax and other transportation-related excise taxes, which will be included in the Intermodal Surface Transportation Authorization bill (H.R. 2400). The bill would delay for two years the requirement that terminals offer dyed diesel fuel and kerosene, repeal the tax on heavy truck tires, simplify the fuels tax refund procedure, and repeal the 4.3 cents per gallon tax on railroad diesel fuel. The House goes further than the Senate in providing tax relief for railroads, and includes tax relief for truckers, which is not included in the Senate version. Extension of the gasoline excise tax, like other excise taxes, is not scored under budget rules. Fight over Ethanol: Three amendments to extend the ethanol tax credit were offered during the markup of the transportation bill, but none were approved. Rep. Sander Levin’s, D-Mich., proposal to extend the ethanol credit was defeated 22 to 11. No revenue offset was included in Levin’s proposal. Rep. Jim Nussle’s, R-Iowa, amendments to extend the credit and either not pay for it, or pay for it by repealing the vacation pay component of the Schmidt Baking case, were ruled out of order by House Ways and Means Committee Chairman Bill Archer, R-Texas. The amendments were not allowed because the bill focuses on excise taxes, and the amendments included provisions relating to the income tax. Proposals to extend the ethanol credit will be the subject of further negotiations when House and Senate tax conferees meet later this year to work out difference in their two versions of the bill. The Senate approved an extension and reduction of the ethanol credit. Many farm state legislators support the ethanol credit, but Archer and other oil-producing state legislators oppose it. Collins Would Repeal Stapled REIT Status: House Ways and Means Committee member Mac Collins, R-Ga., introduced a bill (H.R. 3533) March 25 that would repeal the current grandfather for stapled real estate investment trusts. When Congress prohibited stapled REITs in 1986, certain existing entities were allowed
to continue. Collins’ bill would repeal the special status granted to these entities.
The Administration proposed letting these special REITs continue to exist, but froze their
activities. |
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