Committee on Taxation (COT): staff liaison: Mark Prysock.

• Author: Prysock, Mark
• Position: FEI TECHNICAL COMMITTEES - Minimum Wage and Tax Relief Bill - Brief article

Minimum Wage and Tax Relief Bill: The Senate recently passed a minimum wage and small business tax relief bill (H.R. 2), which includes a provision that would deny deductions for punitive damages and certain settlement payments.

COT has urged both House and Senate leaders to remove this provision from the final legislation sent to the President, arguing that deductions are normally allowed for "ordinary and necessary expenses paid or costs incurred" in carrying on a trade or business. One such expense is the cost of civil...