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| home > legislative update > 02.10.07
Legislative Update - February 10, 2007 Update on Executive Compensation: The Senate passed a small business tax bill (along with an increase in the Minimum Wage) on Feb. 2, 2007. The tax bill includes a revenue raising proposal that limits a certain type of executive compensation – deferred compensation. The Ways and Means Committee in the House is currently considering its version of the small business tax bill and the House Ways and Means Committee Chairman Charles Rangel indicated in recent public comments that he DOES NOT intend to include the Senate proposal on executive compensation. However, we expect Chairman Rangel to tinker with the proposal in the coming months and include it in upcoming tax legislation. The Senate proposal raises $806 million over 10 years. New -- President Bush unveiled his budget proposal for FY 2008. This proposal is non-binding on the Congress, but does offer a list of the President’s legislative priorities. The President’s budget includes several provisions related to the charitable community, including provisions to simplify private foundation excise taxes on net investment income and to permanently allow tax-free withdrawals from individual retirement accounts (IRAs) for charitable purposes. Given the change in control of Congress this past November, the President’s budget was received with less than an enthusiastic reception by the leadership on Capitol Hill. The next step is that the Congress will put together its own budget proposal with the goal of passing a budget prior to October 1, 2007 (the new fiscal year). We will monitor the process closely, and will continue to keep you abreast of any pertinent updates as they become available. If you have any questions in the meantime, please contact us at 202.466.8700. REMINDER: If your organization is a member of the Alliance for Charitable Reform or would like to become a member, please take a moment to fill out this brief membership activation form. |
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