Taxes

Policy Accomplishments for 2007

• Energy legislation was signed into law without punitive oil and gas industry tax provisions.

• Legislation was enacted providing for one year of Alternative Minimum Tax (AMT) relief without any offsetting tax increases. Proposed tax increases for this bill which were defeated totaled $50 billion, and, at various times, included carried interest, nonqualified deferred compensation, a delay in implementation of the worldwide interest allocation rules, and codification of the economic substance doctrine.

• The Tax Technical Corrections Act passed both Houses and will be finalized after Congress returns in January 2008. The tonnage tax provision that the Chamber had opposed in the original House bill was removed from the final bill language.

• Secured enactment of the Small Business and Work Opportunity Act of 2007, which expands and extends the work opportunity tax credit and Section 179 business asset expensing. The Chamber prevented many egregious revenue offsets from being included in the bill-including the retroactive application of Sale In/Lease Out (SILO) provisions, "adjustment" of tax treatment of inversion transactions, denial of deductions for punitive damages, denial of deductions for certain fines and penalties, limitations on deferred compensation, and further restrictions on executive compensation.

• Successfully lobbied to keep the Internet Tax Moratorium in effect until November 1, 2014.

• Obtained 234 co-sponsors for the House bill to repeal the requirement that governments at all levels withhold 3% on payments on contracts and grants, as well as on Medicare, farm, and disaster relief payments.
• Successfully included language in the House Defense Authorization bill that requires the Department of Defense to perform a cost impact study on the 3% withholding law.
• Grew the Government Withholding Relief Coalition to more than 75 associations.

• Organized a working group of businesses and associations to oppose rash attempts to increase taxes on partnerships by altering the treatment of carried interest.
• Commissioned and released Analysis and the Impact of Increasing Carried Interest Tax Rates on the U.S. Economy. The study finds that carried interest is used by 16.2 million Americans invested in 2.9 million partnerships and that a tax increase on carried interest could decrease the value of partnership assets by up to $300 billion. 
• Successfully stopped passage of a $25.6 billion tax increase on business partnerships. However, continued Congressional scrutiny in this area is expected.