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“Over the coming months we are going to take real steps toward fixing our broken tax code by examining and engaging the ideas and energy of every House member who wishes to be heard. America needs a simpler, fairer, flatter tax code that’s built for growth – the growth of our family’s paychecks, the growth of our local businesses, and the economic growth of our nation. An important step is before us as we work to end this ridiculous cycle of important but temporary tax provisions. Permanency creates certainty, boosts the local economy, and advances tax simplification by removing the asterisk from so many temporary provisions.”

– House Ways and Means Chairman Kevin Brady (R-TX)

Press Release, House Ways and Means Committee, Nov. 18, 2015

LEGISLATIVE LANDSCAPE

One Fish Two Fish Red Fish Blue Fish: Extenders Talks Continue. Republican and Democratic tax staffers are still fishing for an ambitious year-end tax extenders package. The top tax writers on Capitol Hill are trying hard to put together a package that goes beyond…

Tax Reform: The Force Awakens? Two weeks ago, it was Senator Rob Portman who voiced optimism towards the possibility of achieving limited tax reform by the end of 2015. Last week, House Speaker Paul Ryan echoed similar sentiments but extended the timeline to 2016. In an interview with Bloomberg TV, Ryan said it would be good to at least…

It’s an Omnibus Christmas…Maybe.  During last week’s closed-door “listening sessions,” House Republicans gave appropriators an earful on what kind of policy proposals they’d like to see in the spending bill due Dec. 11. Here are some of the more controversial policy items…

REGULATORY WORLD

IRS Delays Effective Date for Substantial Equivalence Test. On Sept. 17, the Internal Revenue Service issued T.D. 9734, which contains final and temporary regulations under section 871(m) of the Internal Revenue Code that provide guidance on withholding for “dividend equivalent payments” on derivatives that reference U.S. equity securities. The September regulations were set to apply to certain contracts, including

World Leaders Back OECD BEPS Final Action Plan. G-20 leaders endorsed the Organization for Cooperation and Economic Development’s (OECD) proposed global standards as outlined in…

EU Lawmakers Question U.S. Companies on Tax Strategies. U.S. companies were among the 11 multinational corporations that were asked to testify before the European Union special committee on tax rulings on Nov. 16. Amazon, Anheuser-Busch In-Bev, Barclays, Coca-Cola, Disney, Facebook, Google, HSBC, Ikea, Mc Donald's Europe, and Philip Morris all sent…

IRS Releases New Guidance on Inversions and Related Transactions. The Internal Revenue Service (IRS) issued new anti-inversion guidance in an attempt to curb the practice of U.S. companies moving their address abroad to reduce their U.S. tax burdens…

LINE ITEMS

  • House Speaker Paul Ryan tapped Rep. Pat Tiberi for the vice chairmanship of the Joint Economic Committee.
  • Rep. Charles Boustany was named the new chairman of the House Ways and Means Subcommittee on Tax Policy. Boustany identified three top priorities: stop the migration of American businesses from the U.S., provide relief for small business, and end the over-taxation of struggling families.
  • Democratic presidential candidate Hillary Clinton proposed to create a 20 percent tax credit to help individuals offset the costs of providing daily care and assistance to aging family members. The credit would allow caregivers to claim up to $1,200 in tax relief per year. Read the full plan here.

LOOKING AHEAD

**Congress in recess, returning Dec. 1.