Tax & Financial Services Week Ahead, April 4 – Finance and Banking

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The House and the Senate meet on Monday at 2 p.m. and 3 p.m. respectively.

what to watch

The House and Senate are meeting this week for a two-week working period, and both chambers must approve important matters before they leave the city.

In the Senate, lawmakers continue negotiations on a $10 billion COVID-19 aid package. sen. Mitt Romney (R-UT), the chief negotiator for Republicans, said he and Democrats reached an “agree in principle” on legislation that would be fully offset by, in part, re-directing other COVID-19 relief funds, including those originally earmarked for concert halls and theaters with shutters.

Senate Majority Leader Chuck Schumer (D-NY) also wants to approve Kentanji Brown Jackson before the U.S. Supreme Court. With support from Sens. Joe Manchin (D-WV) and Susan Collins (R-ME) will likely confirm them.

Both chambers are also expected to soon announce conference attendees for negotiations to resolve discrepancies between the House and Senate competitiveness packages — the America COMPETES Act and the U.S. Innovation and Competition Act, respectively.

On the floor

The House will vote on the Restaurant Revitalization Fund Replenishment Act, which would provide an additional $60 billion for the Restaurant Revitalization Fund (RRF). The RRF was created to support restaurants and others in the food and beverage industry in response to COVID-19.

In commission

House Financial Services Committee

On Tuesday, the Subcommittee on Oversight and Investigations will hold a hearing entitled “A Lasting Legacy: The Role of Financial Institutions in the Horrors of Slavery and the Need for Reconciliation”, in which the following witnesses will testify:

  • dr. Daina Ramey Berry, (Oliver H. Radkey Regents Professor and Chair of the History Department, University of Texas at Austin)
  • dr. William A. Darity (Samuel DuBois Cook Professor of Public Policy, African and African American Studies, Economics and Business, Duke University)
  • dr. Sven Beckert (Laird Bell Professor of History, Harvard University)
  • Nikitra Bailey (senior vice president of public policy, National Fair Housing Alliance)
  • dr. Sarah Federman (Assistant Professor at the School of Public and International Affairs, University of Baltimore)

In addition to examining the historical relationship between financial institutions and slavery in the US, lawmakers could also examine the use of financial services and financial technology to propagate human trafficking in the modern age.

On Wednesday, the committee will hold a hearing entitled “The Treasury Secretary’s Annual Testimony on the State of the International Financial System”, in which the following witnesses will testify:

  • Janet Yellen (Secretary, Treasury Department)

Multiple topics are likely to be discussed at this hearing, including how the US is helping other countries financially respond to the COVID-19 pandemic, what financial instruments the US is using to fight Russian aggression in Ukraine, and the outlook for global supply chains and inflationary pressures. Busy . While somewhat outside the scope of this hearing, Secretary Yellen could also face questions about the international tax provisions in President Biden’s fiscal year (FY) 2023 budget proposal. She could also be asked to provide an update on the most recent developments related to the Inclusive Framework being negotiated through the Organization for Economic Co-operation and Development.

Senate Committee on Banks

The committee will hold a hearing on Tuesday entitled “Keeping Markets Fair: Taking into account insider trading laws”, in which the following witnesses will testify:

  • Robert Jackson (Professor of Pierrepont Family Law, New York University School of Law)
  • Todd Henderson (Michael Marks Professor of Law, University of Chicago Law School)
  • David Burton (senior economic policy fellow, Roe Institute for Economic Policy Studies, The Heritage Foundation)

Press releases allege that the nearly 60 members of Congress have violated the Stop Trading on Congressional Knowledge (STOCK) Act, which requires transparency from members about the investments made by them, their spouses and their children. Lawmakers could discuss proposed legislation that would make it more difficult for such violations in the future. For example, the TRUST in Congress Act (HR336), which has strong bipartisan support in the House, would require members of Congress, their spouse and family members to place investments in a blind trust until they leave Congress.

House Ways and Means Committee

On Wednesday, the committee will hold a hearing entitled “Overcoming Racism to Increase Economic Opportunities† No witnesses have been named.

The commission is likely to examine issues within its jurisdiction, such as taxes, that could be used to overcome potential lingering effects of historical racism. For example, lawmakers could discuss the president’s proposal to tax the unrealized capital gains of wealthy individuals, arguing that minority groups are historically less likely to generate wealth from investments.

Senate Finance Committee

The committee will hold a hearing on Tuesday entitled “The President’s 2023 Fiscal Year for Health and Human Services”, in which the following witnesses will testify:

  • Xavier Becerra (Secretary, Ministry of Health and Human Services)

On March 28, President Biden unveiled his fiscal 2023 budget request. Secretary Becerra will testify about proposed funding for the Department of Health and Human Services (HHS), including funds for future pandemics, supplemental vaccines and health equity. For Brownstein’s summary and analysis of the HHS budget proposal, click here

On Thursday, the committee will hold a hearing entitled “The IRS, the President’s 2023 Fiscal Year, and 2022 Filing Season”, in which the following witnesses will testify:

  • Charles Rettig (Commissioner, Internal Revenue Service (IRS))

President Biden’s budget request for FY 2023 includes $14.1 billion for the IRS, an increase of $1.5 billion or an increase of nearly 12% from the level set for FY 2022. It specifically asks for additional resources to improve the taxpayer experience, extend the reach of customer service to underserved communities, accelerate the development of new digital tools to enable better communication between taxpayers and the IRS, and more effectively oversee high income and corporate tax returns to make possible. Commissioner Rettig is expected to answer questions about how the IRS would use this funding. He is also expected to provide an update on the current tax filing season.

On Wednesday, the committee will hold a confirmation hearing to consider the following nominees:

  • Ventris Gibson (Director of the Mint, Treasury Department)
  • Paul Rosen (Assistant Secretary for Investment Security, Treasury Department)

On Wednesday, the Subcommittee on Housing, Transportation and Community Development will hold a hearing entitled “Promoting public transportation in small towns and rural places under the dual infrastructure law”, in which the following witnesses will testify:

  • Ryan Daniel (chief executive officer, St. Cloud Metro Bus)
  • Scott Bogren (Executive Director, Community Transportation Association of America)
  • Baruch Feigenbaum (senior managing director, Transport Policy, Stichting Reden)

The Infrastructure Investment and Jobs Act (IIJA, PL117-58) came into effect in November 2021. It includes funding to help small towns and villages provide clean water, restore ports, improve road projects and expand broadband access. Legislators are expected to consider how implementation of the IIJA will be achieved months after its entry into force.

REWIND TAX AND FINANCE

In case you missed it…

  • President Biden sent his 2023 budget request to Congress last week, initiating the next credit season just weeks after the previous one ended. The budget proposed $5.8 trillion in total spending, about $200 billion under President Biden’s request for FY 2022. While unveiling the budget request, President Biden said it reveals the government’s three spending priorities: (1) fiscal responsibility, (2) safety and security, and (3) investment needed to build a better America. The Brownstein Tax Policy Team summarized and analyzed the budget request and costs of key programs here
  • The House passed retirement security legislation to make it easier for Americans to save. The Securing a Strong Retirement Act (HR2954), also known as “SECURE 2.0,” would promote pension security by, among other things, providing for the automatic enrollment of employees in certain plans and raising the age at which participants must begin receiving mandatory distributions. The Joint Taxation Committee has a estimation of the bill this week that showed it would add $93 million to the state treasury. The package now goes to the Senate, where lawmakers are working on their own pension package. For example, Senate Committee on Health, Education, Labor and Pensions (HELP) Chair Patty Murray (D-WA) is already working with Senate Finance Committee member Richard Burr (R-NC), who also serves on the Senate Finance Committee, on a package she plans to move “later this spring.”

UPCOMING ACTIVITY

Below is a complete list of all tax and financial services events in Congress, Administration, and the private sector for the coming week.

Congress

tuesday 5 april

Senate Budget Committee

Corporate profits rise as prices rise: are corporate greed and profit fueling inflation?

Thursday 7 April

House Administration Committee

Investigating Stock Trading Reforms Before Congress

Administration

Wednesday April 6

Consumer Financial Protection Agency

Consumer Advisory Council meeting

Thursday 7 April

Ministry of Finance

Meeting of the Financial Investigation Advisory Committee

Consumer Financial Protection Agency

Meeting of the Advisory Council of the Credit Union

Private sector

tuesday 5 april

Peterson Institute for International Economics

Fiscal policy under low interest rates

The contents of this article are intended to provide general guidance on the subject. Specialist advice should be sought regarding your specific circumstances.

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