A Technical Analysis of Proposed Section 710

I. Introduction Representative Charles B. Rangel (D-NY), Chairman of the House Committee on Ways and Means, introduced on October 25, 2007, a comprehensive tax reform bill (H.R. 3970) which includes proposed new section 710 of the Internal Revenue Code. This provision also has been included in the Temporary Tax Relief Act of 2007 (H.R. 3996), introduced by Chairman Rangel on October 30, 2007. Proposed section 710 would change the taxation…