The Smith-Wyden bipartisan tax package - expanding the child tax credit & reviving business tax benefits like R&D - passed the House under suspension
Huge numbers in favor. Final vote is 357-70. It’s now onto the Senate
NEW: The House will no longer vote on a rule tomorrow for New York Republicans' SALT bill, per multiple Democratic sources
New Yorkers pushed for SALT in the bipartisan tax bill last week. Instead Rules teed up this bill, providing some SALT relief in 2023
w/
@heatherscope
Thrilled to announce it's my first week at Punchbowl News! I’ll be co-authoring The Vault with the great
@BrendanPedersen
and covering tax, financial services, banking and more on economic policy/politics in Congress.
Add me to your press lists & send along any tips/thoughts!
Some details here of potential bipartisan tax deal, per an office briefed today on where the deal stands --
$35B each for CTC and 3 business tax benefits. That $70B could be largely covered by ending employee retention tax credit claims early
TAX NEWS: Bipartisan tax deal is almost here with Ways and Means staff planning to debrief GOP members on parameters Wednesday.
Wyden told me the deadline is filing season's start on Jan. 29 to expand the child tax credit for 2023.. w/
@LauraEWeiss16
@JakeSherman
@heatherscope
On CTC, deal could phase in benefits faster for multi-child families w/ lower income, gradually raise cap on how much is refundable, allow prior-year income for calculating benefits
Plus, max value of credit - now $2K - would be indexed to inflation starting in 2025
At Economic Club of DC,
@Sen_JoeManchin
called rule that banks report gross flows for accounts to the IRS “screwed up” & said “I think that one's going to be gone,” per CQ’s David Lerman
Rule has been in the mix as option to add hundreds of billions in revenue for reconciliation
The Rules Committee is expected to meet tomorrow morning on a SALT bill, per a source
Here’s text of the SALT bill in play here, which is a very limited, temporary deduction increase for married couples
NEW: NYers pressing for SALT relief in the tax package got a commitment from leadership for a vote next week on a SALT bill to double deductions for married couples filing taxes jointly, getting rid of the “marriage penalty,” per a source
Smith-Wyden bill set for a vote tonight
.
@brianschatz
says US financial regulators aren’t doing their job because they’re not addressing climate risk as material during speech at UN PRI summit
The rule for NY Republicans’ SALT bill failed in a 195-225 vote today.
It had 18 GOP no’s. 2 notable NJ Dems didn’t vote.
The NYers showed some willingness to fight on SALT, but also the strong opposition in their own party. More in
@PunchbowlNews
PM:
.
@SenatorRomney
told me he’s talking with the White House this week about his plan to overhaul and expand the child tax credit. He said he’ll “see if we have any interest in doing something together.”
More on CQ:🔒
NEWS: Wyden & Smith have a ~$78B tax deal & plan to roll it out this a.m., per source familiar w/ talks
Expected in it:
-biz measures
-child tax credit
-affordable housing
-disaster tax relief
-Taiwan bill
-Ending ERC claims
Details in
@PunchbowlNews
AM
NEW: Ways & Means Democrats are meeting tomorrow afternoon to talk about the potential tax deal on the child tax credit & business tax breaks
As we've reported, W&M Republicans will have staff walk through parameters at lunch tomorrow
A deal is close and likely in $50-80B range
NJ's other senator Cory Booker told
@lindsemcpherson
he supports full SALT repeal: "It's something that is outrageous that they balanced the Trump tax cut on the backs of New Jersey residents."
Asked if he would be open to a two-year repeal, he repeated he's for "full repeal."
NEW: Rep. Beyer tells reporters leaving Dem meeting on tax negotiations that he was told tax writers are discussing $70B package split between CTC & business tax benefits
He says cost would be largely covered by ending employee retention tax credit claims
.
@SenToddYoung
now on backing Wyden-Smith tax bill:
“I also want it to be know by my colleagues & by leadership that if [Crapo] falls short in the effort to seek changes, we should still move forward. And I want to offer encouragement to colleagues that might join me in that.”
THE VAULT: Supporters of a deal to expand the child tax credit and revive business tax breaks are ramping up their efforts to move it through both chambers.
Schumer is taking a key procedural step on the bipartisan tax bill from
@RonWyden
&
@RepJasonSmith
tonight. Doesn't mean a Senate floor vote will happen, but still a necessary move that bill backers were looking out for -
Tax scoop: Schumer will put the House-passed Wyden-Smith tax bill on the Senate’s calendar tonight under Rule 14.
This is simply a procedural step & isn’t an indication that Schumer will eventually put the bill on the floor. But notable nonetheless.
w/
@LauraEWeiss16
.
@abigaildisney
told members of Congress today that the company her grandfather built (
@WaltDisneyCo
) could lead on better paying workers but has lacked the imagination to do so. My story on
@rollcall
:
NEW: Wyden/Crapo traded - but both rejected - offers on the tax bill
Dems believed Crapo's CTC changes would kill bill by losing Dems, per Wyden aide. Crapo rejected Wyden counter, which included swapping out CTC lookback
(Vault subscribers got this 1st, in text out now)
NEW: Sens. Sinema, Hawley & Young are quietly & informally working to get to 60 votes for the tax bill
Some of the changes they’re discussing were talked about on a call w trade groups Monday & include Hawley’s push for RECA
More w/
@AndrewDesiderio
NY Republican D’Esposito says going into the vote on the Smith-Wyden tax bill that he hopes Rules meets tonight on a SALT bill
Garbarino, another NYer, says group has had good discussions with leadership on SALT
NEWS — House Republicans are discussing going to the Rules Committee tonight to prepare a SALT relief bill for the floor, several sources tell
@LauraEWeiss16
@heatherscope
and me.
SALT relief didn’t make it in the tax bill. So this won’t become law or get through the senate…
.
@RonWyden
taking a tougher tone w/ Senate GOP tax deal critics: “It’s time to decide. This has been out there for 5 weeks, and they haven’t even said — these critics — here’s what we want and… we’ll vote for it if we get the following things.”
From AM:
In the latest push for his tax bill, Finance Chair
@RonWyden
released Treasury data saying 3.8M small businesses took now-expired tax breaks in 2021 that the bill would revive
Wyden is hitting R's for blocking the bill. There have also been calls for Schumer to hold a vote --
So proud of my former CQ Roll Call colleagues who deserve a bigger voice to represent the FANTASTIC journalism they do.
I'm so grateful for my six years in this incredible newsroom and the fellow reporters who taught me so much. Standing with them!
We’re proud to announce the CQ Roll Call Guild, part of
@newsguild
. Congressional Quarterly has covered Congress since 1945 and Roll Call has been a trusted source of Capitol Hill news since the Eisenhower administration.
Schumer lists legislation to expand the child tax credit among bipartisan bills that could come up in the "weeks and months ahead"
That mention is significant for the Smith-Wyden tax bill. Backers are pushing for a floor vote in the face of Senate GOP opposition
New Schumer Dear Colleague letter outlines next Senate work period
First up: Mayorkas impeachment trial. FISA 4/19. FAA 5/10. FSK bridge. Bipartisan bills
On foreign aid: “I have spoken with Speaker Johnson & I believe that he understands the threat of further delaying”
NEW: Senate Finance’s top Republican
@MikeCrapo
with a new statement on the Wyden-Smith tax deal
Says his concerns with bill remain the same - like with CTC lookback - but colleagues’ issues have grown with time including about making 2023 changes at this point in filing season:
In Democrats’ updated reconciliation text, it appears the 15% corporate minimum tax allows accelerated depreciation deductions & has a new carve out for investments in wireless spectrum
As reported, 1% tax on stock buybacks is in and carried interest is out
New in
@PunchbowlNews
AM: Speaker Mike Johnson hasn’t made up his mind about whether to support the bipartisan tax package that W&M approved last week in a big bipartisan vote
The reason? Grumbling from some of his members about the deal
NEW: Rep. LaLota tells reporters that it’s on the table to take action against unrelated rules due to frustration over lack of SALT in the bipartisan tax package
Rep. D’Esposito says he’s “absolutely” on board too
IRS delaying by 1 year the new $600 1099-K reporting threshold for third-party payment platforms like Venmo, Uber & eBay. Lawmakers aiming to lift the threshold say delay gives Congress time to act
@RichardRubinDC
&
@Saunderswsj
first reported
More (🔒):
NEW: Inside the bleak tax convo at GOP lunch
Finance RM Crapo said he doesn’t want to pass a tax bill this year & spoke of persistent issues w/ Wyden-Smith bill after talks broke down, per 3 sources w/ direct knowledge
w/
@AndrewDesiderio
@bresreports
So much tax news in
@PunchbowlNews
Midday!
-Rules approves SALT bill but House GOP believes rule won’t pass on the floor, from
@JakeSherman
& me
-On
@RepJasonSmith
’s big tax deal vote & what it says for 2025
-
@maxpcohen
on Jeffries cheering tax bill wins
As senators take turns talking about Dems' reconciliation bill on the floor, Finance Chair Wyden touted a 1% tax on stock buybacks now back in the bill
He spoke about the $80B in IRS funding & said Dems will "watchdog" the IRS to ensure it's pursuing tax evasion by the wealthy
INBOX: Over 500 Amazon corporate, tech workers joining warehouse workers in demanding facility shutdowns if a worker there has COVID-19, keeping paying warehouse workers. From group formed to press Amazon on climate-related policies, which has expanded to address other problems
Some W&M Democrats starting to say during markup that they'll vote for Chair Jason Smith & Sen Finance Chair Ron Wyden's tax deal
Reps. Thompson, Blumenauer, Pascrell saying they plan to support it, even though they and fellow Dems saying they want more on the child tax credit
W&M Chair
@RepRichardNeal
said he & Pelosi decided to add paid leave back in reconciliation bill this morning: “We can’t always pull back on our proposals because the other chamber doesn’t want to do this & they don’t want to do that. That’s for further negotiation & discussion.”
🚨on Roll Call: corporate investors are addressing reproductive health issues w/ corporations in largest ever push & are filing what experts say are likely the 1st ever proposals for votes that name abortion directly, urge companies to back abortion rights
Here's Sen. Michael Bennet on Wyden-Smith tax deal out this morning, saying while he prefers Dems' bigger 2021 CTC expansion, lawmakers need to pass this:
.
@SenMullin
had stark warnings for Senate GOP colleagues on how their rejection of the Smith-Wyden tax bill could hamper their hopes for 2025
Mullin told me failure to pass the bill will create problems btwn House & Senate in next year's tax debate
More:
Republican senators leaving meeting with IRS Commissioner Werfel saying he laid out policies to crack down on fraud w/ employee retention tax credit
That could provide savings for tax deal
But Sen. Tillis says any savings shouldn’t be looked at as paying for other tax policies
SENATE DEMOCRATS PASS CLIMATE, TAX & HEALTH CARE BILL IN 51-50 VOTE W/ VP HARRIS BREAKING TIE
After a marathon overnight voting session and last minute tax changes, the reconciliation bill is onto the Democrat-controlled House
4 New Yorkers upset about lack of SALT in the bipartisan tax package have voted “no” as of now on current rule vote
Lawler, D’Esposito, LaLota & Garbarino
NYers were huddling w/ Speaker Johnson before the rule vote, per a source familiar. Now a huddle on the floor w/ leadership
Sens Warren & King told reporters today on a call that they'll be pushing to include in Dems' budget reconciliation package a 7% tax for companies on profits reported to shareholders over $100M.
They said it's an issue of tax fairness, and would raise about $700B over a decade.
Here's a statement from Sen. Mike Crapo - the top Republican on the Senate Finance Committee - about Wyden-Smith tax deal.
Crapo describes the agreement as a "thoughtful starting point for the House to begin the process" --
White House EO on climate risk is out. Along with directing government to coordinate & address climate-related financial risk (which some agencies are already doing), Biden's EO directs Labor Dept to consider scrapping rules that block inclusion of ESG funds in retirement plans.
I'm excited to announce the first edition of the CQ ESG Briefing, a newsletter covering how companies are addressing environmental, social and governance issues, is out! I'll be writing about all things
#ESG
every Thursday morning. And it'll mean more ESG news featured on CQ
President Biden signed his party’s climate, tax & health care package into law in a White House ceremony, capping off a more than year-long push from Democrats.
Democrats at his side including
@Sen_JoeManchin
&
@SenSchumer
, who cut the deal on what largely became the final bill.
House GOP leadership hasn't yet decided whether to put the bipartisan tax deal on the floor this week. It could come to the floor Tues. or Wed. - or get punted
More on the bill's status/obstacles plus backers' efforts from the
@PunchbowlNews
Sunday Vault:
W&M Chair
@RepJasonSmith
on the Senate taking up his tax bill w/ Sen. Wyden after House passes the package: “The House spoke overwhelmingly. I hope that they want to deliver for the American family, the American worker. That’s what this bill does.”
The Smith-Wyden bipartisan tax package - expanding the child tax credit & reviving business tax benefits like R&D - passed the House under suspension
Huge numbers in favor. Final vote is 357-70. It’s now onto the Senate
This is a big moment for United for Respect, which also used last yr's Walmart mtg to push for worker-friendly changes but w/ less of a spotlight. Now, they're working w/ powerful Dems from Bernie to
@SenatorBaldwin
(they support her bill for employees to elect 1/3 board members)
Today at the Walmart shareholders meeting I spoke on behalf of
@forrespect
workers who are proposing to give hourly workers a seat on the board.
@Walmart
: Treat workers with dignity and respect, not with disdain and contempt.
#BernieAtWalmart
.
@SenWarren
speaking at CAP event now, on 15% minimum tax on corporations' income reported to shareholders: "I believe this is gonna happen," she said of the tax, which is part of Democrats' stalled reconciliation bill. "We've got 50."
This also means I’ve wrapped up a great 6 years at CQ Roll Call - so grateful to a wonderful newsroom for my time getting to cover the rise of ESG and all things tax/fiscal policy on the Hill!
Today is my first day as CQ Roll Call's new tax & economic policy reporter. I'm excited to join a great CQ team & bring what I've learned covering ESG. As always, my DMs are open & email is in my bio if you want to talk taxes, have tips or share anything tax/economics related!
Two House Dems who’ve demanded SALT cap relief in the reconciliation bill - Gottheimer & Sherrill - are on board w/ the Senate-passed bill, per statements. They say it won’t raise taxes on families in their districts
3rd “no SALT, no deal” Dem, Suozzi, already signaled support
Young also said he believes votes are close to there for Wyden-Smith tax bill
Says there’s a “fighting chance” to pass it even if Crapo can’t secure changes & remains opposed
Young is a big backer of key bill provision on R&D. Still notable he’s pushing this as a Finance member
Rep. Neal - top Dem on W&M - votes FOR bipartisan tax package that Chair Smith & Finance Chair Wyden negotiated in today's markup
Big bipartisan 40-3 showing with only a few Dem no's
Finance Committee ranking member Sen. Crapo leaves a briefing w/ his members & tells reporters he’s not on board right now w/ Wyden-Smith tax deal and wants changes
Also says he and his members want to do a markup. Says Wyden’s Jan 29 deadline is tight to get this done
For the first time in 6 months, child tax credit checks didn’t go out today to millions of families. Democrats plan to lobby Manchin on the CTC rather than work w/ Republicans, hoping to preserve access added in 2021 for more families
w/
@lindsemcpherson
Senate Democrats are discussing suspending the gas tax, capping insulin costs, antitrust efforts & other measures aimed at cutting costs for Americans amid rampant inflation.
They plan to bring legislation to the floor in March.
w/
@lindsemcpherson
.
@RepJasonSmith
is selling his tax deal - and making headway - in the Senate. But it's got notable opponents too & some made that clear when W&M staff presented at Senate GOP chiefs meeting last week
More from me &
@AndrewDesiderio
in the Sunday Vault:
I joined Washington Journal this morning to talk about Ways & Means releasing Trump’s tax returns. Covered Democrats’ case (below), the Republican response, when we’ll see the returns themselves & more — listen in!
Today |
@LauraEWeiss16
of
@rollcall
on the latest news surrounding the public release of former President Trump's tax returns
"This was about making sure that someone is scrutinizing and putting essentially a check on the President's power"
🚨WH Press Secretary Karine Jean-Pierre says the House Ways and Means Committee's bipartisan tax deal marked up today 40-3 is a "welcome step forward, and we believe Congress should pass it."
In our Sunday Vault,
@BrendanPedersen
& I dig into the government funding fight impact on financial regulators & the IRS
Plus, the tax deal latest & a new letter from W&M members taking issue with Treasury's crypto tax reporting rules. Read it all here:
.
@RonWyden
uses opening at today's Finance hearing on manufacturing/tax to push for his tax bill w/ W&M Chair Smith
"I continue to be open to all sides who want to work in good faith to get this done," he says. Adds these policies won't be on the table in 2025 if bill stalls out
A new wrinkle for the Smith-Wyden tax bill:
@HawleyMO
is floating the idea of attaching RECA, his bill aiding radiation victims
Comes as backers are trying to make a push for the tax bill this work period
More from
@AndrewDesiderio
& me in AM -
Biden proposes quadrupling the buybacks tax (which is currently at a 1% rate) in SOTU.
He also urges passage of his “billionaire minimum tax,” which would set a min tax on the wealthiest households based on income & gain in value of assets.
In his State of the Union address tomorrow, Biden plans to call on Congress to quadruple a tax on companies' stock buybacks that Democrats created last year, according to the White House.
More on CQ (🔒):
Now on
@rollcall
: a new Toomey-Scott bill aims to open 401(k) plans to a bigger mix of investments.
They’re looking to include it in a year-end tax bill, which - if it comes together - would likely also carry a broader retirement savings package
CBO estimate for IRS funding is net $127B in revenue over a decade, a little above what CBO had based on Biden’s budget. That’s below White House’s net $400B, but that was expected.
Wyden in a statement says that if anything WH number “is too conservative, not too aggressive.”
CBO estimates that the funding for tax enforcement activities provided by H.R. 5376, the Build Back Better Act, would increase outlays by $80 billion and revenues by $207 billion, thus decreasing the deficit by $127 billion, through 2031.
.
@SenThomTillis
at Finance hearing says he came to explain his opposition to Wyden-Smith bill
Says he's gotten calls from notable CEOs making case for the bill
Tillis adds he doesn't want to set a precedent that tax bills like this need pay-fors. He's railed against the offset
W&M markup is underway on the tax deal that Smith & Wyden struck to expand CTC, biz tax benefits.
Smith says in opening that bill builds on 2017 GOP tax law, also touts CTC expansion. Bill represents "bipartisan policies that are proven and effective," he says
The House just passed a package of ESG bills 215-214. The legislation would mandate disclosure of ESG metrics and specify reporting requirements on climate risk, political spending, pay raises, tax payments, board diversity, human capital management & more.
NEW: IRS Commissioner Werfel will be at W&M on Feb. 15 after House R’s requested he testify on 1099-K decision
Plus, Heritage Action will tell lawmakers today they’re making SALT bill a key vote no, with rule vote tomorrow
More in
@PunchbowlNews
Midday -
The $1.7T omnibus spending package passed the Senate,
@QuigleyAidan
reports. Now onto the House.
It includes a section to boost US households’ retirement savings that's widely backed in Congress. W&M Chairman Neal said that's a $53B, fully offset package.
The Smith-Wyden tax bill is scheduled for a vote TODAY
Comes after Speaker Johnson was addressing NYer push for SALT late last night. SALT stand created friction, but bill itself is expected to have broad support
If so, it would be a big deal for long-sought biz/family benefits
Senators leaving GOP lunch now say they had a conversation about the Wyden-Smith tax bill
Republicans saying they talked through the bill & Sen. Crapo gathered input
Sen. Tillis, a vocal bill critic, said similar issues came up like w/ the bill’s pay-for, which Tillis opposes
Democrats have a possible compromise on a clean energy tax plan for reconciliation: 5 yrs of House plan to expand existing incentives, then moving to Senate proposal to scrap existing tax breaks in favor of new ones tied to results
w/
@lindsemcpherson
And Sen. Sherrod Brown weighs in, calling on lawmakers to pass Wyden-Smith tax deal. Highlights CTC, biz piece, disaster tax relief for East Palestine, affordable housing -
Schumer urged Senators to read an analysis today from Moody's Chief Economist Mark Zandi, which says the bipartisan infrastructure bill and Democrats' budget package would grow the economy - and would produce the most growth if they're done together
ICYMI in the
@PunchbowlNews
Sunday Vault: Senate GOP leadership race dynamics are seeping into tax bill debate
-Thune wants "big, significant" # of R's on board to back bill
-Cornyn won't back it w/o Finance markup, or Crapo getting big edits
Much more:
New in today’s
@PunchbowlNews
AM: Rep. LaLota (R-NY) is circulating a letter to Speaker Johnson saying tax deal shouldn’t be brought up under suspension so members can have SALT debate, according to draft we obtained
Letter:
More:
Ways & Means is set to meet at 3 on Trump’s tax returns.
Republicans doing a presser now, with ranking member Brady saying Republicans will insist transcript from closed door portion become public. He says revealing info from Trump’s returns would create a new political weapon.
Now on
@rollcall
: A look at Democrats’ latest push led by
@SenWarren
for the IRS to create its own tax preparing services, more tools for non-filers to claim refundable tax credits & other programs meant to make filing taxes easier
Big businesses are pressing for more carve outs from the reconciliation bill’s 15% corporate minimum tax, including some related to pension funds & renewable energy projects. Dems behind the proposal say the tax’s structure works as is
Sen Finance Chair
@RonWyden
’s tax on billionaires’ assets would bring in $557B over a decade, JCT found, per statement from Wyden.
He’s still pushing to add the tax to the reconciliation bill in the Senate. That revenue # is higher than any single tax currently in the package.
Schumer said the Senate is expected to begin consideration of Democrats’ climate, tax & health care bill Saturday afternoon, leaving a short window to shore up Dem support — particularly Sen. Sinema’s crucial vote
Reconciliation update w/
@lindsemcpherson
Senators just introduced a bill to restore the employee retention tax credit for 2021’s final quarter.
Critically the bill has Republican support. It’s from
@SenatorHassan
&
@SenatorTimScott
w/ Dems Warner & Cardin plus Republican Capito.
Key Democrats are mulling a revival of the employee retention tax credit, a piece of pandemic aid some small business and nonprofits want back.
Small Business Chair Cardin told me it’s on the table for any fresh COVID relief & as a tax issue generally.
If it holds, the rate of rejections for corporations' executive pay packages will be at a record-high this year.
“Shareholders have no patience for companies that are insulating executives from the effects of COVID,” said As You Sow's
@LandisWeaver