To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses.

HR 1161, 62, 63 & 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the amount of annual income deferrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. HR 5719 - NAIFA opposes the "Tax Payor Simplification Act".

Client expense: $315,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

HR 25 - "Fair Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" - Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 4172 - "To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500.00" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000 to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

Client expense: $630,000 · Firm income: Not reported

Government targets: Federal Emergency Management Agency (FEMA), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Thrift Supervision (OTS), SENATE, Treasury, Dept of, U.S. Copyright Office

H.R.150 - Life Insurance Employee Notification Act. Issue: effects of company owned life insurance. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. Issue: restrictions on life only solicitation. S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other. H. R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. Issue: restrictions on life only solicitation. H.R.3970 - Tax Reduction and Reform Act of 2007. Issue: corporate tax changes. H.R.4159 - Simplified USA Tax Act of 2007. Issue: taxation of life insurance products. H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC/ Annuity combo clarification. TRACKING: H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. Issue: Estate Tax H.R.2380 - To make the repeal of the estate tax permanent. Issue: Estate Tax S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. Issue: Estate Tax H. R. 4172 - To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500,000. Issue: Estate Tax H. R. 4235 - Estate Tax Reduction Act of 2007. Issue: Estate Tax H. R. 4242 - Certain and Immediate Estate Tax Relief Act of 2007. Issue: Estate Tax H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act. Issue: Estate Tax S. 1994 - To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. Issue: Estate Tax H. R. 3475 - To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1-ear termination of the estate tax, and for other purposes. Issue: Estate Tax S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. Issue: Estate Tax H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013. Issue: Estate Tax H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. Issue: Estate Tax

Client expense: $1,472,800 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

See attachment. TAX Third Quarter Report 2008 H.R. 150 - Life Insurance Employee Notification Act. Issue: effects of company owned life insurance. H.R. 1424 Energy Economic Stabilization Act 2008. Issue: taxation in life insurance companies. H.R. 1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. Issue: restrictions on life only solicitation. H. R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. Issue: restrictions on life only solicitation. H.R. 3970 - Tax Reduction and Reform Act of 2007. Issue: corporate tax changes. H.R. 4159 - Simplified USA Tax Act of 2007. Issue: taxation of life insurance products. H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC/ Annuity combo clarification. S. 1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other. TRACKING: H.R. 411 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act S. 14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S. CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. H. CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013.

Client expense: $830,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

See attachment. TAX Second Quarter Report 2008 H.R. 25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R. 377 - Insuring Families for Their Future Act of 2007 H.R. 411 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. H.R. 3970 - Tax Reduction and Reform Act of 2007 H.R. 4159 - Simplified USA Tax Act of 2007 H.R. 3361 - Pension Protection Technical Corrections Act of 2007 H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.1974 - Pension Protection Technical Corrections Act of 2007 S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. Treasury Notice 2008-18 - Principle Based Reserves Treasury Notice 2007-15 - Simplification of correction programs for violation of sections 7702, 7702A and 817(h). Treasury Notice 2008-24 - Taxation of partial exchanges. Dept of Treasury - Internal Revenue Rule 2007-61 - suspending Revenue Rule 2007-54 and regulation project - calculating policyholders share of separate account for dividend received deduction.

Client expense: $910,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

See attachment. TAX Third Quarter Report 2008 H.R. 150 - Life Insurance Employee Notification Act. Issue: effects of company owned life insurance. H.R. 1424 Energy Economic Stabilization Act 2008. Issue: taxation in life insurance companies. H.R. 1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. Issue: restrictions on life only solicitation. H. R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. Issue: restrictions on life only solicitation. H.R. 3970 - Tax Reduction and Reform Act of 2007. Issue: corporate tax changes. H.R. 4159 - Simplified USA Tax Act of 2007. Issue: taxation of life insurance products. H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC/ Annuity combo clarification. S. 1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other. TRACKING: H.R. 411 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act S. 14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S. CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. H. CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013.

Client expense: $830,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

HR 1161, 62, 63 & 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the amount of annual income deferrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. HR 5719 - NAIFA opposes the "Tax Payor Simplification Act".

Client expense: $315,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 4172 - "To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

Client expense: $610,000 · Firm income: Not reported

Government targets: Federal Emergency Management Agency (FEMA), Federal Trade Commission (FTC), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Thrift Supervision (OTS), SENATE, Treasury, Dept of, U.S. Copyright Office

See Addendum S. 14, "Invest in America Act", provision relating to estate tax repeal. S. 158, "Access to Affordable Health Care Act", Section 224 (Premiums on Long-Term Care Qualified Contracts) S. 349, Small Business and Work Opportunity Act of 2007. S. 504, "Long-Term Care Trust Account Act of 2007". S. 601, Simplification Through Additional Reporting Tax Act of 2007 (Broker reporting of customer's basis in mutual fund transactions). S. 1010, "Retirement Security for Life Act of 2007". S. 1753, "Healthy Workforce Act". S. 1809, "Long-Term Care Act of 2007". S. 2044, "Independent Contractor Proper Classification Act of 2007". S. 2126, "Generating Retirement Ownership Through Long-Term Holding (Growth) Act of 2007. S. 2337, "Long-Term Care Affordability and Security Act of 2007". S. 3125, "Energy Independence and Tax Relief Act of 2008", Section 241, Subpart F - Exception for Active Financing Income. S. 3289, "To Permanently Extend the Estate Tax as in Effect in 2009". S. 3327, "Empowered at Home Act of 2008", provision allowing tax deductino for a certain percentage of long-term care premiums. H.R. 46, "Small Business Tax Fairness and Simplification Act of 2007". H.R. 6, "Energy Independance and Security Act of 2007" (mutual fund cost basis reporting). H.R. 411, To amend the Internal Revenue Code of 1986 to make permanent certain expiring provisions..., provision relating to estate tax repeal H.R. 878, Simplification Through Additional Reporting Tax Act of 2007 (S. 601, H.R. 878) (Broker reporting of customer's basis in mutual fund transactions). H.R. 976, "Small Business Tax Relief Act of 2007". H.R. 2205, "Retirement Security for Life Act of 2007". H.R. 2380, "Death Tax Repeal Permanency Act of 2007". H.R. 2582, "Qualified Long-Term Care Fairness Act of 2007". H.R. 2796, "Generate Retirement Ownership through Long-Term Holding Act of 2007". H.R. 3088, "Long-Term Care Act of 2007". H.R. 3125, "Energy Independence and Tax Relief Act of 2008", Section 241, Subpart F - Exception for Active Financing Income. H.R. 3221, "American Housing Rescue and Foreclosure Prevention Act of 2008", Section 641 (related to mutual fund cost basis reporting). H.R. 3363, "Long-Term Care Affordability and Security Act". H.R. 3970, "Tax Reduction and Reform Act of 2007" - Provisions related to modification of unrelated business income tax rules for certain investment partnerships, basis reporting by brokers on sales of stocks, extension of special rules for regulated investment companies, reduction in corporate tax rate. H.R. 3996, "Temporary Tax Relief Act of 2007", Section 622 - Broker Reporting of Customer Basis in Securities Transactions; and Section 201 - Non-qualified Deferred Compensation from Certain Tax Indifferent Parties. H.R. 4912, "To amend the Internal Revenue Code of 1986 with respect to prepaid derivative contracts". H.R. 6049, "Renewable Energy and Job Creation Act of 2008", Section 239, Subpart F, "Exception for Active Financing Income". H.R. 6237, "Tax Relief for Long-Term Care Act of 2008". H.R. 6499, "Sensible Estate Tax Act of 2008". H.R. 7060, "Renewable Energy and Job Creation Act of 2008", Section 403, Broker Reporting of Customer Basis in Securities Transactions. IRS Notice 2008-18 (1/13/08) - Life Insrance Reserves: proposed AG VACARVM and Life PBR. Current tax treatment of Stranger-Originated Life Insurance (STOLI) - no bill number. Dividends Received Deduction for Life Insurers - no bill number. Life Insurance Company Reserves - no bill number. Senate Finance Committee, "Proposed Legislation on the Taxation of Exchange-Traded Notes" - no bill number.

Client expense: $780,000 · Firm income: Not reported

Government targets: Federal Reserve System, HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of, White House Office

HR 4351, AMT Relief Act of 2007, Section 101-102, AMT repeal, Food Donation Tax Incentive S. 3125 and HR 6049, Energy Independence and Tax Relief Act of 2008 -- re-filing of Tax Relief Act after initial incorrect filing. HR 2380, Death Tax Repeal Permanency Act of 2007 -- estate tax repeal HR 3170, Capital Gains and Estate Tax Relief Act of 2007 -- estate tax repeal HR 411, Amend the Internal Revenue Code of 1986, Section 1 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. HR 25, Fair Tax Act, Sec. 101-104 S. 1025, Fair Tax Act, Sec. 101-104, Title II HR 3997, Emergency Economic Stabilization Act - Troubled Asset Provision HR 1424, Emergency Economic Stabilization Act, Title I - Troubled Asset Provision; Title III, Sec. 101 - Renewable Energy Credit; Title III, Sec. 303 - Energy Efficient Commercial Buildings Deduction; Title III, Sec. 404 - 0.2% FUTA surtax; Title IV, Sec. 319 - WOTC for Hurricane Katrina Employees; Title IV, Sec. 323 - Food Donation of qualified inventories. S. 3335, Emergency Economic Stabilization Act, Sec. 101 - Renewable Energy Credit; Sec. 143 - Energy Efficient Commercial Building; Sec. 236 - Food Donation; Sec. 240 - WOTC for Hurricane Katrina Employees

Client expense: $1,600,130 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), HOUSE OF REPRESENTATIVES, SENATE

H.R.150 - Life Insurance Employee Notification Act. Issue: effects of company owned life insurance. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. Issue: restrictions on life only solicitation. S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other. H. R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. Issue: restrictions on life only solicitation. H.R.3970 - Tax Reduction and Reform Act of 2007. Issue: corporate tax changes. H.R.4159 - Simplified USA Tax Act of 2007. Issue: taxation of life insurance products. H.R. 1424 Energy Economic Stabilization Act 2008. Issue: taxation in life insurance companies. H.R. 7242 Pension Protection Act IRC Amendments of 2008. Issue: LTC/ Annuity combo clarification. TRACKING: H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.2380 - To make the repeal of the estate tax permanent. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. H. R. 4172 - To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500,000. H. R. 4235 - Estate Tax Reduction Act of 2007 H. R. 4242 - Certain and Immediate Estate Tax Relief Act of 2007 H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act S. 1994 - To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H. R. 3475 - To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1-ear termination of the estate tax, and for other purposes. S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013. H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax.

Client expense: $1,219,600 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

See attached Support HR 411, HR 2380, HR 3170 ("Death Tax Elimination Act") to permanently repeal the estate tax or increase the imposition threshold. Support HR 1712, HR 2138, S 41 to extend the research and development tax credit. Monitor tax nexus legislation (S 1726 & HR 5276), the Business Activity Tax Simplification Act. Support Emergency Economic Stabilization Act of 2008 (HR1424).

Client expense: $60,000 · Firm income: Not reported

Government targets: Commerce, Dept of (DOC), Energy, Dept of, Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Justice, Dept of (DOJ), SENATE

See attached Support HR 411, HR 2380, HR 3170 ("Death Tax Elimination Act") to permanently repeal the estate tax or increase the imposition threshold. Support HR 1712, HR 2138, S 41 to extend the research and development tax credit. Monitor tax nexus legislation (S 1726 & HR 5276), the Business Activity Tax Simplification Act

Client expense: $70,000 · Firm income: Not reported

Government targets: Commerce, Dept of (DOC), HOUSE OF REPRESENTATIVES, Justice, Dept of (DOJ), SENATE

HR 4351, AMT Relief Act of 2007, Section 101-102, AMT repeal, Food Donation Tax Incentive S. 3125 and HR 6049, Energy Independence and Tax Relief Act of 2008 -- re-filing of Tax Relief Act after initial incorrect filing. HR 2380, Death Tax Repeal Permanency Act of 2007 -- estate tax repeal HR 3170, Capital Gains and Estate Tax Relief Act of 2007 -- estate tax repeal HR 411 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses, Sec. 1 -- estate tax repeal HR 25, Fair Tax Act, Sec. 101-104 -- estate tax repeal S. 1025, Fair Tax Act, Sec. 101-104, Title II -- estate tax repeal

Client expense: $1,708,000 · Firm income: Not reported

Government targets: Centers For Medicare and Medicaid Services (CMS), HOUSE OF REPRESENTATIVES, SENATE

H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.3970 - Tax Reduction and Reform Act of 2007 H.R.4159 - Simplified USA Tax Act of 2007 H.R.25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H.R.2380 - To make the repeal of the estate tax permanent. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other H.R.377 -Insuring Families for Their Future Act of 2007 H.R.3361 - Pension Protection Technical Corrections Act of 2007 S.1974 - Pension Protection Technical Corrections Act of 2007 H. R. 4172 - To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500,000. H. R. 4235 - Estate Tax Reduction Act of 2007 H. R. 4242 - Certain and Immediate Estate Tax Relief Act of 2007 H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act S. 1994 - To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H. R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. H. R. 3475 - To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1-ear termination of the estate tax, and for other purposes. S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013.

Client expense: $920,600 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Labor, Dept of (DOL), SENATE, Treasury, Dept of

See Addendum S. 14, "Invest in America Act", provision relating to estate tax repeal. S. 158, "Access to Affordable Health Care Act", Section 224 (Premiums on Long-Term Care Qualified Contracts) S. 349, Small Business and Work Opportunity Act of 2007. S. 504, "Long-Term Care Trust Account Act of 2007". S. 601, Simplification Through Additional Reporting Tax Act of 2007 (Broker reporting of customer's basis in mutual fund transactions). S. 1010, "Retirement Security for Life Act of 2007". S. 1753, "Healthy Workforce Act". S. 1809, "Long-Term Care Act of 2007". S. 2044, "Independent Contractor Proper Classification Act of 2007". S. 2126, "Generating Retirement Ownership Through Long-Term Holding (Growth) Act of 2007. S. 2337, "Long-Term Care Affordability and Security Act of 2007". S.3125, "Energy Independence and Tax Relief Act of 2008", Section 241, Subpart F - Exception for Active Financing Income. H.R. 46, "Small Business Tax Fairness and Simplification Act of 2007". H.R. 6, "Energy Independance and Security Act of 2007" (mutual fund cost basis reporting). H.R. 411, To amend the Internal Revenue Code of 1986 to make permanent certain expiring provisions..., provision relating to estate tax repeal H.R. 878, Simplification Through Additional Reporting Tax Act of 2007 (S. 601, H.R. 878) (Broker reporting of customer's basis in mutual fund transactions). H.R. 976, "Small Business Tax Relief Act of 2007". H.R. 2205, "Retirement Security for Life Act of 2007". H.R. 2380, "Death Tax Repeal Permanency Act of 2007". H.R. 2582, "Qualified Long-Term Care Fairness Act of 2007". H.R. 2796, "Generate Retirement Ownership through Long-Term Holding Act of 2007". H.R. 3088, "Long-Term Care Act of 2007". H.R. 3125, "Energy Independence and Tax Relief Act of 2008", Section 241, Subpart F - Exception for Active Financing Income. H.R. 3221, "American Housing Rescue and Foreclosure Prevention Act of 2008", Section 641 (related to mutual fund cost basis reporting). H.R. 3363, "Long-Term Care Affordability and Security Act". H.R. 3970, "Tax Reduction and Reform Act of 2007" - Provisions related to modification of unrelated business income tax rules for certain investment partnerships, basis reporting by brokers on sales of stocks, extension of special rules for regulated investment companies, reduction in corporate tax rate. H.R. 3996, "Temporary Tax Relief Act of 2007", Section 622 - Broker Reporting of Customer Basis in Securities Transactions; and Section 201 - Non-qualified Deferred Compensation from Certain Tax Indifferent Parties. H.R. 4912, "To amend the Internal Revenue Code of 1986 with respect to prepaid derivative contracts". H.R. 6049, "Renewable Energy and Job Creation Act of 2008", Section 239, Subpart F, "Exception for Active Financing Income". H.R. 6237, "Tax Relief for Long-Term Care Act of 2008". IRS Notice 2008-18 (1/13/08) - Life Insrance Reserves: proposed AG VACARVM and Life PBR. Current tax treatment of Stranger-Originated Life Insurance (STOLI) - no bill number. Dividends Received Deduction for Life Insurers - no bill number. Life Insurance Company Reserves - no bill number. Senate Finance Committee, "Proposed Legislation on the Taxation of Exchange-Traded Notes" - no bill number.

Client expense: $620,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

See attachment. TAX Second Quarter Report 2008 H.R. 25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R. 377 - Insuring Families for Their Future Act of 2007 H.R. 411 - To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. H.R. 3970 - Tax Reduction and Reform Act of 2007 H.R. 4159 - Simplified USA Tax Act of 2007 H.R. 3361 - Pension Protection Technical Corrections Act of 2007 H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.1974 - Pension Protection Technical Corrections Act of 2007 S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. Treasury Notice 2008-18 - Principle Based Reserves Treasury Notice 2007-15 - Simplification of correction programs for violation of sections 7702, 7702A and 817(h). Treasury Notice 2008-24 - Taxation of partial exchanges. Dept of Treasury - Internal Revenue Rule 2007-61 - suspending Revenue Rule 2007-54 and regulation project - calculating policyholders share of separate account for dividend received deduction.

Client expense: $910,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 4172 - "To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

Client expense: $620,000 · Firm income: Not reported

Government targets: Federal Emergency Management Agency (FEMA), Federal Trade Commission (FTC), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Thrift Supervision (OTS), SENATE, Treasury, Dept of, U.S. Copyright Office

HR 1161, 62, 63 & 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the amount of annual income deferrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. HR 5719 - NAIFA opposes the "Tax Payor Simplification Act".

Client expense: $315,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 4172 - "To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

Client expense: $610,000 · Firm income: Not reported

Government targets: Federal Emergency Management Agency (FEMA), Federal Trade Commission (FTC), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Thrift Supervision (OTS), SENATE, Treasury, Dept of, U.S. Copyright Office

HR 411, HR 2380, HR 3170: "Death Tax Elimination Act": support legislation to make the repeal of the estate tax permanent or increase the threshold under which it is imposed. HR 1712, HR 2138, S 41: support legislation to extend the research and development tax credit.

Client expense: $60,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

See Addendum S. 14, "Invest in America Act", provision relating to estate tax repeal. S. 158, "Access to Affordable Health Care Act", Section 224 (Premiums on Long-Term Care Qualified Contracts) S. 349, Small Business and Work Opportunity Act of 2007 - An original bill to amend the Internal Revenue Code of 1986 to provide additional tax incentives to employers and employees of small businesses, and for other purposes, to include provisions relating to non-qualified deferred compensation plans. S. 504, "Long-Term Care Trust Account Act of 2007". S. 601, Simplification Through Additional Reporting Tax Act of 2007 - A bill to amend the Internal Revenue Code of 1986 to require broker reporting of customer's basis in securities transactions, and for other purposes. S. 1010, "Retirement Security for Life Act of 2007". S. 1753, "Healthy Workforce Act". S. 1809, "Long-Term Care Act of 2007". S. 2044, "Independent Contractor Proper Classification Act of 2007". S. 2126, "Generating Retirement Ownership Through Long-Term Holding (Growth) Act of 2007. S. 2337, "Long-Term Care Affordability and Security Act of 2007". H.R. 46, "Small Business Tax Fairness and Simplification Act of 2007". H.R. 6, "Energy Independance and Security Act of 2007" (mutual fund cost basis reporting). H.R. 411, To amend the Internal Revenue Code of 1986 to make permanent certain expiring provisions..., provision relating to estate tax repeal H.R. 878, Simplification Through Additional Reporting Tax Act of 2007 (S. 601, H.R. 878) A bill to amend the Internal Revenue Code of 1986 to require broker reporting of customer's basis in securities transactions, and for other purposes. H.R. 976, "Small Business Tax Relief Act of 2007" - A bill to amend the Internal Revenue Code of 1986 to provide tax relief for small businesses, and for other purposes. H.R. 2205, "Retirement Security for Life Act of 2007". H.R. 2380, "Death Tax Repeal Permanency Act of 2007". H.R. 2582, "Qualified Long-Term Care Fairness Act of 2007". H.R. 2796, "Generate Retirement Ownership through Long-Term Holding Act of 2007". H.R. 3088, "Long-Term Care Act of 2007". H.R. 3363, "Long-Term Care Affordability and Security Act". H.R. 3970, "Tax Reduction and Reform Act of 2007" - Provisions related to modification of unrelated business income tax rules for certain investment partnerships, basis reporting by brokers on sales of stocks, extension of special rules for regulated investment companies, reduction in corporate tax rate. H.R. 3996, "Temporary Tax Relief Act of 2007", Section 622 - Broker Reporting of Customer Basis in Securities Transactions; and Section 201 - Non-qualified Deferred Compensation from Certain Tax Indifferent Parties. H.R. 4912, "To amend the Internal Revenue Code of 1986 with respect to prepaid derivative contracts". IRS Notices 2007-86 and 2007-89, providing a one-year extension for general compliance with Internal Revenue Code 409A. IRS Notice 2008-18 (1/13/08) - Life Insrance Reserves: proposed AG VACARVM and Life PBR. IRS Notice 2008-42 (3/28/08) - Guidance on the application of Sections 101(j) and 264 (f): grandfather of life insurance policies and changes to split-dollar arrangements. IRS Correcting amendements to the final regulations under Section 409A of the Internal Revenue Code: RIN-1595-BE79 (7/30/07). Current tax treatment of Stranger-Originated Life Insurance (STOLI) - no bill number. Dividends Received Deduction for Life Insurers - no bill number. Life Insurance Company Reserves - no bill number. Proposed 401(k) Fee Disclosure Tax Legislation - no bill number.

Client expense: $560,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

H.R.25 - Fair Tax Act of 2007 H.R.150 - Life Insurance Employee Notification Act H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H.R.2380 - To make the repeal of the estate tax permanent. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 Fair Tax Act of 2007 S.1111 Fair Flat Tax Act of 2007 S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.CON.RES.21 - An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012. H.R.377 -Insuring Families for Their Future Act of 2007 H.R.3361 - Pension Protection Technical Corrections Act of 2007 S.1974 - Pension Protection Technical Corrections Act of 2007 H. R. 4172 - To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500,000. H. R. 4235 - Estate Tax Reduction Act of 2007 H. R. 4242 - Certain and Immediate Estate Tax Relief Act of 2007 H. R. 4042 - Family Farm, Small Business, and Home Tax Relief Act S. 1994 - To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H. R. 3170 - To make permanent the individual income tax rates for capital gains, and for other purposes. H. R. 3475 - To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1-ear termination of the estate tax, and for other purposes. H.R.4839 - Tax Technical Corrections Act of 2007 H.R.4195 - Tax Technical Corrections Act of 2007 S.2374 - Tax Technical Corrections Act of 2007 H.R.3970 - Tax Reduction and Reform Act of 2007 H.R.4159 - Simplified USA Tax Act of 2007 S.CON.RES.70 An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013. H.CON.RES.312 Revising the congressional budget for the United States Government for fiscal year 2008, establishing the congressional budget for the United States Government for fiscal year 2009, and setting forth appropriate budgetary levels for fiscal years 2010 through 2013.

Client expense: $2,762,032 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Labor, Dept of (DOL), SENATE, Treasury, Dept of

HR 1161, 62, 63 & 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411 - Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the amount of annual income deferrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. HR 5719 - NAIFA opposes the "Tax Payor Simplification Act".

Client expense: $315,000 · Firm income: Not reported

HR 25 - "Fair Tax Act of 2007" - --Fundamental tax reform's implications for companies and life insurance plans HR 150 - "Life Insurance Employee Notification Act" - --Corporate-owned Life Insurance HR 411 - "To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses" - Estate tax reform HR 1810 - "To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies" - Life/non-life consolidation HR 1929 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 2380 - "To make the repeal of the estate tax permanent" - Estate tax reform S 14 - "A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes" - Estate tax reform S 1025 - "Fair Tax Act of 2007" - Fundamental tax reform S 1111 - "Fair Flat Tax Act of 2007" - Fundamental tax reform's implications for companies and life insurance products S 1366 - "A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other" -Life/non-life consolidation HR 377 - "Insuring Families for Their Future Act of 2007" - Dollar limitation on employer-provided group term life insurance HR 3361/S 1974 - "Pension Protection Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 4172 - "To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500.000" - Estate tax reform HR 4235 - "Estate Tax Reduction Act of 2007" - Estate tax reform HR 4242 - "Certain and Immediate Estate Tax Relief Act of 2007" - Estate tax reform HR 4042 - "Family Farm, Small Business and Home Tax Relief Act" - Estate tax reform S 1994 - "To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax" - Estate tax reform HR 3170 - "To make permanent the individual income tax rates for capital gains, and for other purposes" - Estate tax reform HR 3475 - "To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1 year termination of the estate tax, and for other purposes" - Estate tax reform HR 4839/HR 4195/S 2374 - "Tax Technical Corrections Act of 2007" - Monitoring all provisions to prepare for practical implications HR 3970 - "Tax Reduction and Reform Act of 2007" - Fundamental tax reform's implications for companies and life insurance products

Client expense: $570,000 · Firm income: Not reported

Government targets: Federal Emergency Management Agency (FEMA), Federal Trade Commission (FTC), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Thrift Supervision (OTS), SENATE, Treasury, Dept of, U.S. Copyright Office

Taxation. 1) H.R. 411, H.R. 1586, H.R. 1929, H.R. 2380, S. 1994: making the repeal of the estate tax permanent. 2) H.R. 4351, H.R. 3996: providing temporary relief from the Alternative Minimum Tax (AMT). 3) S.708, S. 709: promoting labor force participation of older Americans.

Client expense: $4,440,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Estate Tax. H.R. 411, H.R. 1586, H.R. 1929, H.R. 2380: making the repeal of the estate tax permanent. Older American Workers. S.708, S. 709: to promote labor force participation of older Americans.

Client expense: $4,860,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

See Addendum S. 14, "Invest in America Act", provision relating to estate tax repeal. S. 349, Small Business and Work Opportunity Act of 2007 - An original bill to amend the Internal Revenue Code of 1986 to provide additional tax incentives to employers and employees of small businesses, and for other purposes, to include provisions relating to non-qualified deferred compensation plans. S. 504, "Long-Term Care Trust Account Act of 2007". S. 601, Simplification Through Additional Reporting Tax Act of 2007 - A bill to amend the Internal Revenue Code of 1986 to require broker reporting of customer's basis in securities transactions, and for other purposes. S. 1010, "Retirement Security for Life Act of 2007". S. 1753, "Healthy Workforce Act". S. 1809, "Long-Term Care Act of 2007". S. 2044, "Independent Contractor Proper Classification Act of 2007". H.R. 46, "Small Business Tax Fairness and Simplification Act of 2007". H.R. 411, To amend the Internal Revenue Code of 1986 to make permanent certain expiring provisions..., provision relating to estate tax repeal H.R. 878, Simplification Through Additional Reporting Tax Act of 2007 (S. 601, H.R. 878) A bill to amend the Internal Revenue Code of 1986 to require broker reporting of customer's basis in securities transactions, and for other purposes. H.R. 976, "Small Business Tax Relief Act of 2007" - A bill to amend the Internal Revenue Code of 1986 to provide tax relief for small businesses, and for other purposes. H.R. 2205, "Retirement Security for Life Act of 2007". H.R. 2380, "Death Tax Repeal Permanency Act of 2007". H.R. 2796, "Generate Retirement Ownership through Long-Term Holding Act of 2007". H.R. 3088, "Long-Term Care Act of 2007". H.R. 3363, "Long-Term Care Affordability and Security Act". H.R. 3970, "Tax Reduction and Reform Act of 2007" - Provisions related to modification of unrelated business income tax rules for certain investment partnerships, basis reporting by brokers on sales of stocks, extension of special rules for regulated investment companies, reduction in corporate tax rate. H.R. 3996, "Temporary Tax Relief Act of 2007", Section 622 - Broker Reporting of Customer Basis in Securities Transactions; and Section 201 - Non-qualified Deferred Compensation from Certain Tax Indifferent Parties. H.R. 4912, "To amend the Internal Revenue Code of 1986 with respect to prepaid derivative contracts". IRS Notices 2007-86 and 2007-89, providing a one-year extension for general compliance with Internal Revenue Code 409A. IRS Correcting amendments to the final regulations under Section 409A of the Internal Revenue Code: RIN-1595-BE79 (7/30/07). IRS temporary and proposed regulations under Internal Revenue Code Section 6039I-6039I-1T, Information Reporting on Employer-Owned Life Insurance Contracts (11/7/07). Senate Finance Committee proposal to create additional limits for non-qualified deferred compensation plans - no bill number Senate Finance Committee staff proposal of May 25, 2007, to require certain brokers (including mutual funds) to report to the IRS regarding adjusted basis on the sale of certain publicly traded securities - no bill number. 409A Regulations [72 Fed. Reg. Code Sections 19233-19325 (Apr. 17, 2007)] in application to split-dollar life insurance, emeritus life insurance agents, and general agent loan issues. 2008 Budget Resolution (S. Com. Res. 21), Section 303, "Deficit Neutral Fund for Tax Relief". Proposed Tax Reform legislation no bill number Proposed 401(k) Fee Disclosure Tax Legislation no bill number Proposed Stranger-Owned Life Insurance Excise Tax no bill number Current tax treatment of Stranger-Originated Life Insurance (STOLI) - no bill number

Client expense: $1,260,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of, UNDETERMINED

HR 411, HR 2380, HR 3170: "Death Tax Elimination Act": support legislation to make the repeal of the estate tax permanent or increase the threshold under which it is imposed.

Client expense: $70,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Taxation. 1) H.R. 411, H.R. 1586, H.R. 1929, H.R. 2380, S. 1994: making the repeal of the estate tax permanent. 2) H.R. 4351, H.R. 3996: providing temporary relief from the Alternative Minimum Tax (AMT). 3) S.708, S. 709: promoting labor force participation of older Americans.

Client expense: $4,440,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Social Security Administration (SSA)

* bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR 2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the am ount of annual income deferrrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411- Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. Estate tax - NAIFA supports immediate, fiscally sound, sustainable estate tax reform that removes the estate tax burden for 99.6% of Americans. 3 4

Client expense: $300,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

S. 14, "Invest in America Act", provision relating to estate tax repeal. S. 349, “Small Business and Work Opportunity Act of 2007” - An original bill to amend the Internal Revenue Code of 1986 to provide additional tax incentives to employers and employees of small businesses, and for other purposes, to include provisions relating to non-qualified deferred compensation plans. S. 504, "Long-Term Care Trust Account Act of 2007". S. 601, “Simplification Through Additional Reporting Tax Act of 2007” - A bill to amend the Internal Revenue Code of 1986 to require broker reporting of customer's basis in securities transactions, and for other purposes. S. 1010, "Retirement Security for Life Act of 2007". S. 1753, "Healthy Workforce Act". S. 1809, "Long-Term Care Act of 2007". H.R. 46, "Small Business Tax Fairness and Simplification Act of 2007". H.R. 411, To amend the Internal Revenue Code of 1986 to make permanent certain expiring provisions..., provision relating to estate tax repeal H.R. 878, “Simplification Through Additional Reporting Tax Act of 2007” (S. 601, H.R. 878) – A bill to amend the Internal Revenue Code of 1986 to require broker reporting of customer's basis in securities transactions, and for other purposes. H.R. 976, "Small Business Tax Relief Act of 2007" - A bill to amend the Internal Revenue Code of 1986 to provide tax relief for small businesses, and for other purposes. H.R. 2205, "Retirement Security for Life Act of 2007". H.R. 2380, "Death Tax Repeal Permanency Act of 2007". H.R. 2796, "Generate Retirement Ownership through Long-Term Holding Act of 2007". H.R. 3088, "Long-Term Care Act of 2007". H.R. 3363, "Long-Term Care Affordability and Security Act". Proposed Tax Reform legislation – no bill number Proposed 401(k) Fee Disclosure Tax Legislation – no bill number Proposed Stranger-Owned Life Insurance tax – no bill number Senate Finance Committee proposal to create additional limits for non-qualified deferred compensation plans - no bill number Senate Finance Committee staff proposal of May 25, 2007, to require certain brokers (including mutual funds) to report to the IRS regarding adjusted basis on the sale of certain publicly traded securities - no bill number. 409A Regulations [72 Fed. Reg. Code Sections 19233-19325 (Apr. 17, 2007)] in application to split-dollar life insurance, emeritus life insurance agents, and general agent loan issues. 2008 Budget Resolution (S. Com. Res. 21), Section 303, "Deficit Neutral Fund for Tax Relief". See Addendum

Client expense: $1,440,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

H.R. 3170: To make permanent the individual income tax rates for capital gains H.R. 411: To amend the Internal Revenue Code of 1986 to make permanent the repeal of the estate tax H.R. 2380: To make the repeal of the estate tax permanent H.R. 1586: To repeal the federal estate and gift taxes H.R. 1929: To amend the Internal Revenue Code of 1986 to exempt certain famland from the estate tax Last-In-First-Out inventory valuation method of accounting S Corp reform Internet taxes H.R. 2488: To amend the Internal Revenue Code of 1986 to reduce tax on beer to pre-1985 level

Client expense: $390,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

HR3170 regarding capital gains and estate tax relief; HR411 to repeal the estate tax; HR2380 to repeal the estate tax; HR1929 Save the Family Farm and Ranch Act of 2007; S1025 Fair Tax Act of 2007; HR46 Small Business Tax Fairness and Simplification Act of 2007; S1111 Fair Flat Tax Act of 2007; HR 1591 bill making emergency supplemental appropriations for the fiscal year ending September 30, 2007; S396 bill making emergency supplemental appropriations for the fiscal year ending September 30, 2007

Client expense: $849,841 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Internal Revenue Service (IRS), SENATE, Treasury, Dept of

TAX – Mid Year Report 2007 H.R.25 - To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. H.R.150 - To prevent the nondisclosure of employer-owned life insurance coverage of employees as an unfair trade practice under the Federal Trade Commission Act, and for other purposes. H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 - A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. S.1111 -A bill to amend the Internal Revenue Code of 1986 to make the Federal income tax system simpler, fairer, and more fiscally responsible, and for other purposes. S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.CON.RES.21 - An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012. Not Yet Introduced: Tax Technicals and Miscellaneous Bill H.R.3361 - To make technical corrections related to the Pension Protection Act of 2006. S.1974- the Pension Protection Technical Corrections Act of 2007 Department of Treasury Internal Revenue Code Section 101(j) COLI Best Practices Act - technical corrections and regulations Department of Treasury Internal Revenue Code Section 72(a) and Notice 2003-51 - amendment to 72(a) and other guidance Department of Treasury Section 807 - taxation of principles based reserves See attachment.

Client expense: $1,680,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

* President Bush's Tax Advisory Panel reported its recomendations on November 2, 2005. NAIFA opposes ideas that encourage short term savings and spending such as the Lifetime Savings Accounts pushed by President Bush and Save for Retirement Accounts suggested by the Tax Advisory Panel. bills which would repeal estate tax on family farms and businesses. NAIFA & AALU support estate tax reform which removes the estate tax burden for 99% of Americans. HR 2 - Fair Minimum Wage Act of 2007. Senate version of HR 2 caps the am ount of annual income deferrrable to the lesser of $1,000,000 per year on the average of the last 5 years salary. NAIFA opposes enactment of a cap on deferred compensation. Charitable Owned Life Insurance - President Bush proposed applying a 25% excise tax on death benefits of life insurance used in complicated life insurance and annuity transactions involving charitable and educationsl institutions. NAIFA supports in principal. On Nov. 28, 2005 the Senate passed legislation (part of an omnibus tax bill) that would impose a 100% excise tax on the premiums and other sums invested in these arrangements. NAIFA supports in principal but will work on details. HR 1161, 62, 63 & S 545, 6, 7 - new tax-advantaged savings plans in President Bush's proposed 2005 budget. NAIFA concerned about impact on life insurance and annuity sales. HR 25, HR 411- Legislation to make the estate tax repeal enacted in 2001 permanent. S 34 and S 135 are "reform" 4 8

Client expense: $300,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Securities & Exchange Commission (SEC), Treasury, Dept of

H.R.150 - To prevent the nondisclosure of employer-owned life insurance coverage of employees as an unfair trade practice under the Federal Trade Commission Act, and for other purposes. H.R.411 -To amend the Internal Revenue Code of 1986 to make permanent certain temporary provisions applicable to individuals, including the sales tax deduction, the child credit, the repeal of the estate tax, and the deduction for higher education expenses. H.R.1810 - To amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other companies. H.R.1929 -To amend the Internal Revenue Code of 1986 to exempt certain farmland from the estate tax. H.R.2380 - To make the repeal of the estate tax permanent. S.14 - A bill to repeal the sunset on certain tax rates and other incentives and to repeal the individual alternative minimum tax, and for other purposes. S.1025 - A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. S.1111 -A bill to amend the Internal Revenue Code of 1986 to make the Federal income tax system simpler, fairer, and more fiscally responsible, and for other purposes. S.1366 -A bill to amend the Internal Revenue Code of 1986 to permit the consolidation of life insurance companies with other S.CON.RES.21 - An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012. Not Yet Introduced: Tax Technicals and Miscellaneous Bill H.R.377 - To amend the Internal Revenue Code of 1986 to increase the dollar limitation on employer-provided group term life insurance that can be excluded from the gross income of the employee. H.R.3361 - To make technical corrections related to the Pension Protection Act of 2006. S.1974- the Pension Protection Technical Corrections Act of 2007 H.R.25 To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.

Client expense: $5,376,407 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Labor, Dept of (DOL), SENATE, Treasury, Dept of

H.R. 43 - Brownfields Housing and Community Renewal Development Act - Amends the Housing and Community Development Act of 1974 to establish a grants program for redevelopment activities for brownfield sites. H.R. 60 - Amends the Internal Revenue Code to make permanent the tax deduction for state and local general sales taxes. H.R. 411 - Amends the Internal Revenue Code to make permanent the tax deductions for state and local sales taxes, for certain expenses of elementary and secondary school teachers, and for tuition and related expenses. H.R. 778 - Amends the Internal Revenue Code to make permanent the tax credit for residential energy efficient property expenditures. H.R. 1077 - Internet Consumer Protection Act of 2007 - Amends the Internet Tax Freedom Act to make permanent the ban on state taxation of Internet access and on multiple or discriminatory taxes on electronic commerce. H.R. 1112 - Stealth Tax Relief Extension Act of 2007 - Amends the Internal Revenue Code to: (1) increase the exemption from the alternative minimum tax for individual taxpayers in 2007; and (2) extend through 2007 the allowance of certain nonrefundable tax credits against alternative minimum tax liability. H.R. 1147 - REIT Investment Diversification and Empowerment Act of 2007 - Amends Internal Revenue Code provisions relating to real estate investment trusts (REITs) to: (1) treat passive foreign exchange gains attributable to overseas real estate investment as qualifying REIT income; (2) increase from 20 to 25% the the maximum value of a REIT's total assets thay may be represented by securities of one or more taxable REIT subsidiaries; (3) revise safe harbor rules for the excise tax penalty on certain REIT sales activities; (4) treat rental payments made by a health care facility to a REIT as qualifying REIT income; and (5) treat income from, and interests in, foreign-qualified REITs as qualifying REIT income and assets. H.R. 1250 - Expensing Property Expands our Nation's Strong Economy Act of 2007 or the EXPENSE Act of 2007 - Amends the Internal Revenue Code to: (1) repeal the limitations on the expensing of depreciable business assets; and (2) allow taxpers to elect a two-year recovery period for depreciable property. H.R. 1261 - Capital Gains Inflation Relief Act of 2007 - Amends the Internal Revenue Code to allow an inflation adjustment based upon the gross domestic product deflator to the adjusted basis of certain assets (including C corporation common stock and tangible property used in a trade or business) held by a taxpayer for more than three years for purposes of determining gain or loss on the sale or other disposition of such assets. H.R. 1422 - Endangered Species Recovery Act of 2007- Amends the Internal Revenue Code to allow certain landowners whose property contains the habitat of an endangered or threatened species and who enter into a habitat protection agreement a tax credit for costs relating to habitat protection easements and restoration. Places limits on the amount of such credit for calendar years 2008, 2009, 2010, 2011, and 2012. Directs the Comptroller General of the United States to study and report to Congress on the effectiveness of such credit. H.R. 1677 - Taxpayer Protection Act of 2007 - Amends Internal Revenue Code provisions relating to tax administration and taxpayer protections including an alternative procedure for furnishing a non-foreign affidavit in connection with the sale of a U.S. real property interest. H.R. 1753 - Amends the Internal Revenue Code to: (1) make permanent the current year tax deduction (expensing) for environmental remediation costs; and (2) repeal requirements for the recapture upon sale of such deduction as ordinary income. H.R. 1813 - Amends the Internal Revenue Code to make permanent the tax deduction for mortgage insurance premiums. H.R. 1850 - Housing America's Workforce Act - Amends the Internal Revenue Code to allow employers a business tax credit for up to 50 percent of the qualified housing expenses paid for the benefit of their employees. Defines "qualified housing expenses" to include homeownership assistance and rental assistance. Limits the amount of such credit to the lesser of $10,000 or six percent of an employee's home purchase price, or up to $2,000 for rental assistance. Excludes from employee gross income the value of employer-paid housing assistance. H.R. 1876 - Mortgage Cancellation Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to the discharge of certain residential mortgage obligations. H.R. 1942 - AMT Middle Class Fairness Act of 2007 - Amends Internal Revenue Code provisions relating to the alternative minimum tax (AMT) on individuals to: (1) allow a deduction from such tax for state and local taxes; and (2) adjust the AMT exemption amounts for inflation after 2006. H.R. 2014 - Leasehold Improvement Depreciation Act of 2007 - Amends the Internal Revenue Code to: (1) make permanent the accelerated depreciation of qualified leasehold improvement property (i.e., a 15-year recovery period); and (2) modify the rule for determining the adjustment to earnings and profits for depreciation of such property. H.R. 2091 - Amends the Internal Revenue Code to allow bonds guaranteed by any federal home loan bank to be treated as tax-exempt state or local bonds (thus excluding interest on such bonds from gross income). H.R. 2206 - U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 – Included in this bill was a provision that would increase to $125,000 (with annual inflation adjustments) the expensing allowance for small business assets and extends such expensing allowance through 2010. H.R. 2318 - Amends the Internal Revenue Code to allow the tax deduction for state and local income and property taxes as an adjustment in computing alternative minium taxable income. H.R. 2380 - Death Tax Repeal Permanency Act of 2007 - Makes the repeal of the estate and generation-skipping transfer taxes under the Economic Growth and Tax Reconciliation Act of 2001 permanent (under the Act, those taxes would be reinstated after December 31, 2010). H.R. 2659 - Conservation Reserve Program Tax Fairness Act of 2007 - Amends the Internal Revenue Code and the Social Security Act to treat payments under the Conservation Acreage Reserve Program as rentals from real estate and thus not self employment income subject to employment tax. Transfers from the general fund of the Treasury to specified social security trust funds amounts necessary to cover any reductions in trust fund revenues resulting from this Act. H.R. 2715 - To amend the Internal Revenue Code of 1986 to include heavier vehicles in the limitation on the depreciation of certain luxury automobiles. H.R. 2737 - Health Care Relief Act of 2007 - To amend the Internal Revenue Code of 1986 to allow previously uninsured individuals a refundable credit for health insurance costs and to provide tax incentives to encourage small business health plans. H.R. 2834 - Amends the Internal Revenue Code to treat as ordinary income (i.e., income taxed at regular income tax rates) income received by a partner from an investment services partnership interest. Defines "investment services partnership interest" as any interest in a partnership held by a person who provides services to a partnership by: (1) advising the partnership as to the value of specified assets (e.g., real estate, commodities, or options or derivative contracts); (2) advising the partnership about investing in, purchasing, or selling specified assets; (3) managing, acquiring, or disposing of specified assets; or (4) arranging financing with respect to acquiring specified assets. H.R. 2893 - To amend the Internal Revenue Code of 1986 to provide that qualified homeowner downpayment assistance is a charitable purpose, and for other purposes. S. 138 - Amends the Internal Revenue Code to allow a surviving spouse to exclude from gross income up to $500,000 of the gain from the sale or exchange of a principal residence owned jointly with a deceased spouse if the sale or exchange occurs within two years of the death of the spouse and other ownership and use requirements have been met. S. 269 - Amends the Internal Revenue Code to: (1) increase the expensing allowance for depreciable business property from $100,000 to $200,000; (2) make such allowance permanent; (3) increase to $800,000 the asset cost threshold for calculating reductions in such allowance; (4) allow an annual inflation adjustment to the expensing allowance and the threshold amount after 2007; and (5) allow a taxpayer to revoke an election to expense such business property without the prior consent of the Secretary of the Treasury. S. 700 - Endangered Species Recovery Act of 2007- Amends the Internal Revenue Code to allow certain landowners whose property contains the habitat of an endangered or threatened species and who enter into a habitat protection agreement a tax credit for costs relating to habitat protection easements and restoration. Places limits on the amount of such credit for calendar years 2008, 2009, 2010, 2011, and 2012. Directs the Comptroller General of the United States to study and report to Congress on the effectiveness of such credit. S. 926 - Policyholder Disaster Protection Act of 2007 - Amends the Internal Revenue Code to allow insurance companies (other than life insurance companies) to make tax deductible contributions to a tax-exempt policyholder disaster protection fund established by this Act for the payment of policyholders' claims arising from certain catastrophic events, such as windstorms, earthquakes, fires, or floods. S. 1078 - Housing America's Workforce Act - Amends the Internal Revenue Code to allow employers a business tax credit for up to 50 percent of the qualified housing expenses paid for the benefit of their employees. Defines "qualified housing expenses" to include homeownership assistance and rental assistance. Limits the amount of such credit to the lesser of $10,000 or six percent of an employee's home purchase price, or up to $2,000 for rental assistance. Excludes from employee gross income the value of employer-paid housing assistance. S. 1155 - Conservation Reserve Program Tax Fairness Act of 2007 - Amends the Internal Revenue Code and the Social Security Act to treat payments under the Conservation Acreage Reserve Program as rentals from real estate and thus not self employment income subject to employment tax. Transfers from the general fund of the Treasury to specified social security trust funds amounts necessary to cover any reductions in trust fund revenues resulting from this Act. S. 1361 - Leasehold Improvement Depreciation Act of 2007 - Amends the Internal Revenue Code to: (1) make permanent the accelerated depreciation of qualified leasehold improvement property (i.e., a 15-year recovery period); and (2) modify the rule for determining the adjustment to earnings and profits for depreciation of such property. S. 1394 - Mortgage Cancellation Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to the discharge of certain residential mortgage obligations. S. 1416 - Amends the Internal Revenue Code to make permanent the tax deduction for mortgage insurance premiums. S . 1453 - ITFA Extension Act of 2007 - Amends the Internet Tax Freedom Act to extend until November 1, 2011: (1) the ban on state taxation of Internet access and on multiple or discriminatory taxes on electronic commerce; and (2) provisions allowing states with Internet tax laws enacted prior to the ban to continue enforcing such laws.

Client expense: $60,000 · Firm income: Not reported

Government targets: Environmental Protection Agency (EPA), Federal Communications Commission (FCC), Federal Deposit Insurance Corporation (FDIC), Federal Reserve System, Federal Trade Commission (FTC), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), Interior, Dept of (DOI), Internal Revenue Service (IRS), Office of the Comptroller of the Currency (OCC), SENATE, Treasury, Dept of, Veterans Affairs, Dept of (VA)

Estate Tax. H.R. 411, H.R. 1586, H.R. 1929, H.R. 2380: making the repeal of the estate tax permanent. Older American Workers. S.708, S. 709: to promote labor force participation of older Americans.

Client expense: $4,860,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE