We typically don’t comment on new legislation until it’s passed, but we’ve been receiving many questions on the status of the American Jobs and Closing Tax Loopholes Act of 2010 which was passed by the House of Representatives of May 28.
On June 8, the Senate began its consideration of its substitute amendment to the bill and is expected to vote this week on its version of the extenders package (technically the Senate substitute amendment to the House amendment to the Senate amendment), and Senator Charles Schumer (D-NY) has predicted that the measure will pass.
The bill before the Senate is very similar to the bill passed by the House. Both bills would retroactively reinstate and extend for one year a host of important tax breaks for businesses and individuals. And they both include many revenue raisers, such as a crackdown on carried interest, a crackdown on using certain S corporations as a way to minimize Medicare and Social Security taxes, and another assault on “foreign tax loopholes.” However, the Senate bill makes several important modifications to the tax provisions in the House-passed bill.
- The Senate bill drops the House bill’s new rules for defined contribution plan fee disclosure requirements.
- The Senate bill keeps the House’s carried interest crackdown but modifies it to soften the blow
- The Senate bill would increase the Oil Spill Liability Trust Fund financing rate to 41 cents per barrel (up from 34 cents in the House version).
We’ll update with all the details when the bill is passed.