TAX PACKAGE LIKELY TO MOVE TO HOUSE TOMORROW

Dec, 14, 2010  |  Today's News |  Ethanol |  Legislation & Regulation

Although there is currently no Senate vote on Obama’s tax package scheduled, experts predict that the measure will be taken up tomorrow morning, paving the way for a debate in the House to begin later this week. 

 

The tax package is expected to pass the Senate without trouble.  Senator Feinstein has requested that she be allowed to introduce an amendment to the bill, lowering the Volumetric Ethanol Excise Tax Credit (VEETC) from 45 cents to 36 cents, but even if introduced, experts doubt that she has the votes to pass it.  Several House Democrats like this amendment, but it does not have enough support in the Senate.

 

Therefore, following the Senate vote on the package, the House is set to discuss the bill and with many House Democrats upset with President Obama for the compromise, debate is guaranteed. 

 

Included in the legislation is a one year extension on VEETC at 45 cents, a measure that Illinois Corn Growers Association, other state and national corn grower associations, and the ethanol groups have been working hard to obtain.  This measure will help existing ethanol plants by providing blenders incentives to continue blending ethanol and will help consumers by lowering their gasoline costs at the pump.

 

The package also addresses estate taxes which are currently set back at their regular levels on January 1, 2011.  The legislation would re-instate estate taxes for two years by imposing a 35 percent rate on estates worth more than $5 million for individuals and $10 million for couples.

 

Also important for Illinois farmers are measures addressing the biodiesel tax credit, allowing 100 percent business expensing in 2011, and extending current income tax rates and AMT relief.

 

All indications point to a positive outcome in the House as well.  Even as House Democrats expressed their displeasure in the compromise, they have indicated that they will not hold up the legislation because of the divisive issue of estate taxes.

 

Still, your Congressman needs to know where you stand.  If you haven’t yet contacted him or her, please do so and let him know that you support the tax package and how it will benefit you and your farm.

 

Congresswoman Bean (IL-8): 202-225-3711

Congresswoman Biggert (IL-13): 202-225-3515

Congressman Costello (IL-12): 202-225-5661

Congressman Davis (IL-7): 202-225-5006

Congressman Quigley (IL-5): 202-225-4061

Congressman Foster (IL-14): 202-225-2976

Congressman Gutierrez (IL-4): 202-225-8203

Congresswoman Halvorson (IL-11): 202-225-3635

Congressman Hare (IL-17): 202-225-5905

Congressman Jackson, Jr (IL-2): 202-225-0773

Congressman Johnson (IL-15): 202-225-2371

Congressman Kirk (IL-10): VACANT

Congressman Lipinski (IL-3): 202-225-5701

Congressman Manzullo (IL-16): 202-225-5676

Congressman Roskam (IL-6): 202-225-4372

Congressman Rush (IL-1): 202-225-4372

Congresswoman Schakowsky (IL-9): 202-225-2111

Congressman Aaron Schock (IL-18): 202-225-6201

Congressman John Shimkus (IL-19): 202-225-5271