Congressman Tom Reynolds Opens Fall ‘07 Podcast Series

The Tax Foundation opened its Fall ‘07 Podcast series with a very engaging conversation with Congressman Tom Reynolds of New York.

Rep. Reynolds joined Scott Hodge to discuss the current crop of issues before Congress, including the debate over carried interest and private equity, the alternative minimum tax (AMT), and the future of overall tax reform.

It’s a highly interesting and informative conversation. You can listen to it by clicking here

ISSUES IN THE NEWS

Tax Foundation Files Two U.S. Supreme Court Briefs

The Tax Foundation filed amicus curiae (“friend of the court”) briefs with the U.S. Supreme Court in two cases:

Staff IT, Inc. v. United States

The Tax Foundation’s brief supports Staff IT, Inc.’s effort to have its case heard by the U.S. Supreme Court.

Employers face penalties for not withholding payroll taxes from employees’ wages. But Congress has passed a law forgiving penalties if the failure was reasonably caused by “undue hardship.” Congress has reasoned that by allowing non-paying companies to stay in business, they can recover and ultimately repay their owed taxes.

Staff IT, Inc., a Houston-based technician staffing company, failed to pay and deposit its payroll taxes after a “perfect storm” of the dot-com crash and the subsequent recession reduced demand for Staff IT’s services. The company recovered by 2002 and resumed its tax payments, but the IRS has pursued penalties up to 60 percent.

View the full brief online at: http://www.taxfoundation.org/publications/show/22625.html

Kentucky Dep’t of Revenue v. Davis

The Tax Foundation’s brief supports George and Catherine Davis, Kentucky residents who invested in municipal bonds issued by several states. Federal law excludes from income tax all interest earned by such bonds, but Kentucky punishes out-of-state investment by taxing interest on non-Kentucky bonds. The legal challenge is based on the Commerce Clause of the U.S. Constitution, which bars states from solely punishing out-of-state activity. The Supreme Court will hear the case on November 5.

View the full brief online at: http://www.taxfoundation.org/publications/show/22629.html