Upcoming Tax and Financial Services Week, November 15, 2021 | Brownstein Hyatt Farber Schreck
The House and Senate will meet again on Monday at 6:30 p.m. and 3 p.m., respectively.
What to watch
This afternoon, President Joe Biden enacted the Infrastructure Investment and Jobs Act, the bipartisan infrastructure framework and the first pillar of his two-pronged legislative agenda.
The other pillar, the Build Back Better Act, has yet to be passed by either house. The House could vote on the bill as early as this week, provided the Congressional Budget Office (CBO) releases “additional financial information” that a group of moderate Democrats requested. A CBO score is expected by November 19.
Even if the House passes the budget reconciliation package this week, it will likely be amended in the Senate. Two senators in particular, the Sens. Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ), will be at the heart of these discussions.
With the release of the latest Bureau of Labor Statistics report that last week inflation rose to an annual rate of 6.2%, the biggest increase in more than 30 years, some feared Manchin was pushing to delay the adoption of the Build Back Better Act. Manchin had previously called for a “strategic pause”, although following the BLS report he only said “in all respects, the threat posed by record inflation to the American people is not” transient. ” and on the contrary worsens “. However, if he and other moderate Democrats became increasingly concerned about inflationary pressures, overall spending on the Build Back Better Act could be cut or suspended.
President Biden has repeatedly pushed back those concerns, however, saying the package would instead counteract inflationary pressure, rather than increase it.
Separately, Senate Majority Leader Chuck Schumer (D-NY) said yesterday in a letter to a dear colleague that he and the Senate Budget Committee are working with the House and Senate committees and the Parliamentarian of the Senate on the “Exfoliation of Privileges” of the Build Back Better Act. ensure that he respects the Senate’s conciliation rules and the instructions of the budget resolution. Schumer aims to complete this process and start organizing “Byrd Bath” meetings with the MP this week.
On the floor
The House should not be considering tax or financial services legislation, even if it could vote on the Build Back Better Act.
The Senate will consider the National Defense Authorization Act this week, according to Schumer.
Senate Banking Commission
On Thursday, the Committee of the Whole will hold a confirmation hearing for the following nominations:
If confirmed, Saule Omarova will be responsible for ensuring that national banks and federal savings associations operate in a safe and healthy manner, provide fair access to financial services, and comply with applicable laws and regulations. Since her appointment, however, Omarova has proven to be controversial. Some lawmakers, mostly Republicans, took issue with some comments she made, including calling the banking sector “a quintessential industry”, calling for an end to banking “as we know it” and supporting corporate bankruptcy. energetic.
House Financial Services Committee
On Tuesday, the Committee of the Whole will hold a markup of the following bills:
Credit Union Governance Modernization Act (HR2311), which would revise the procedure for expelling members of a federal credit union so that a member can be expelled for cause in accordance with a policy adopted by a federal credit union. majority vote of the directors of a credit union
Investor Choice Act (HR2620), which would prohibit brokers and investment advisers from including binding arbitration, forum selection restrictions, or class action bans in a client or client agreement.
Holding SPACs Accountable Act (HR5910), which would exclude certain special purpose acquisition companies from the safe harbor for forward-looking statements
Fair Hiring in Banking Act (HR5911), which would reduce barriers to employment in the banking sector for qualified applicants with minor criminal records
SPAC Excessive Fee Protection for Investors Act (HR5913), which would prohibit registered advisers, brokers and registered representatives of brokers from facilitating the transaction or recommending the securities of certain special purpose acquisition companies unless certain disclosures are made
Empower States to Protect Seniors From Bad Actors (HR5914), which would create a grant program similar to that created by Section 989A of the Dodd-Frank Act, which was not implemented, housed within SEC Investor Counsel’s Office to Support and Strengthen Senior State Investor Protection Programs
Senate Finance Committee
On Tuesday, the Committee of the Whole will hold a confirmation hearing to consider the following candidates:
If confirmed, Maria Lago will lead the International Trade Administration, which is responsible for creating prosperity by strengthening the international competitiveness of US industry, promoting trade and investment, and ensuring fair trade and respect. trade laws and agreements.
House Ways and Means Committee
On Tuesday, the oversight subcommittee will hold a hearing titled “Zone of Opportunity Program and Who It Left Out”, in which the following witnesses will testify:
Jessica Lucas-Judy, Director of Strategic Affairs at the Government Accountability Office
Brett Theodos, Principal Investigator at the Urban Institute
David Wessel, Principal Investigator at the Brookings Institution
John Persinger, CEO of Erie Downtown Development Corporation
The Opportunity Zones (OZ), enacted under the Tax Cuts and Employment Act (TCJA, PL115-97), protect investors from capital gains tax if they invest long-term in businesses or certain projects within OZs — low-income census tracts in the United States The program has since received criticism that some projects whereby investors get the tax advantage have not not benefited communities, compromising the objective of the program. Lawmakers could explore how AOs failed to benefit low-income communities as originally intended.
On Wednesday, the trade subcommittee will hold a hearing titled “Strengthening the U.S.-Africa Investment Relationship”, at which the following witnesses will testify:
Florizelle (Florie) Liser, President and CEO of the Corporate Council on Africa
Witney Schneidman, non-resident researcher at the Brookings Institution
Rosa Whitaker, President and CEO of The Whitaker Group
CJ Mahoney, Assistant General Counsel for U.S. International Trade and Azure, Microsoft
In a recent statement to Congress, the White House announced it would suspend Ethiopia, Mali and Guinea from duty-free access to US markets from 2022. Citing their failure to defend human rights, the administration said these countries are no longer complying with the requirements. under the Africa Growth and Opportunity Act (AGOA). Lawmakers could discuss this issue and others as US Secretary of State Antony Blinken makes his first official trip to sub-Saharan Africa this week, visiting Kenya, Nigeria and Senegal.
Taxation and finance Rewinding
In case you missed it …
- President Biden will sign the Infrastructure Investment and Jobs Act this afternoon after it passes the House on Friday, November 5. Although the bipartisan infrastructure measure was passed by the Senate in August, it was prevented from making progress in the House. Now that this will become law, however, the IRS should move swiftly forward on guidance regarding reporting requirements for cryptocurrency holders in the text of the bill. According to former IRS employees, the IRS may issue draft regulations relating to this section in the coming weeks.
- IRS Commissioner Charles Rettig published an op-ed last week urging Congress to provide the agency with $ 80 billion. In the article, he reiterated the Biden administration’s argument that “$ 400 billion in additional revenue can be generated over the next decade through high-end revenue-focused enforcement efforts, reducing thus the tax gap “. He also wrote that “this figure is not a surprise: if we have the resources we need, we will be able to significantly reduce non-compliance over several years.”
Below is a complete listing of all Tax and Financial Services events in Congress, government and the private sector for the coming week.
Wednesday November 17th
Joint Economic Committee
Demystifying Crypto: Digital Assets and the Role of Government
Wednesday November 17th
Meeting of the Advisory Board to discuss IRS funding and other matters
Thursday November 18
Taxpayer Advocacy Group Joint Committee to Discuss Improving Customer Service
Wednesday November 17th
The future of work and the workforce
Thursday November 18
Populism and the future of the Fed