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

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The House and Senate will meet Monday at 2 p.m. and 3 p.m., respectively.

What to watch

The House and Senate are in session this week ahead of a two-week state work stint, and both houses have big-ticket items to approve before leaving town.

In the Senate, lawmakers continue negotiations on a $10 billion COVID-19 relief package. Sen. Mitt Romney (R-UT), the Republicans’ chief negotiator, said he and Democrats had reached “agreement in principle” on legislation that would be fully offset, in part, by reassigning other COVID-19 relief funds, including those originally intended for closed concert halls and theaters.

Senate Majority Leader Chuck Schumer (D-NY) also wants to endorse Kentanji Brown Jackson for the U.S. Supreme Court. With the support of the senses. Joe Manchin (D-WV) and Susan Collins (R-ME), it is likely to be confirmed.

The two chambers are also expected to soon announce participants in negotiations to resolve differences between the House and Senate’s competitiveness packages — the America COMPETES Act and the United States’ 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 to the Restaurant Revitalization Fund (RRF). The RRF was created to support restaurants and other food and beverage industry players in response to COVID-19.

In committee

House Financial Services Committee

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

  • Dr. Daina Ramey Berry, (Oliver H. Radkey Regents Professor and Chair of the Department of History, 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, School of Public and International Affairs, University of Baltimore)

In addition to exploring the historical relationship between financial institutions and slavery in the United States, lawmakers could also explore the use of financial services and fintech to propagate human trafficking in the modern era.

On Wednesday, the committee will hold a hearing entitled “The Secretary of the Treasury’s annual testimony on the state of the international financial systemduring which the following witnesses will testify:

  • Janet Yellen (Secretary, Treasury Department)

Several topics will likely be discussed during this hearing, including how the United States is helping other countries respond financially to the COVID-19 pandemic, the financial tools the United States is using to fight aggression Russian in Ukraine and the outlook for global supply chains and inflationary pressure. . Although somewhat outside the scope of this hearing, Secretary Yellen may also face questions about international tax provisions in President Biden’s fiscal year 2023 budget proposal. She could also be asked to provide an update on the most recent developments regarding the inclusive framework being negotiated through the Organization for Economic Co-operation and Development.

Senate Banking Committee

The committee will hold a hearing on Tuesday entitled “Maintaining Market Fairness: Considering Insider Trading Legislationduring which the following witnesses will testify:

  • Robert Jackson (Pierrepont Professor of Family Law, New York University School of Law)

  • Todd Henderson (Michael Marks Professor of Law, University of Chicago School of Law)

  • David Burton (Senior Economic Policy Fellow, Roe Institute for Economic Policy Studies, The Heritage Foundation)

News reports have alleged that nearly 60 members of Congress violated the Stop Trading on Congressional Knowledge (STOCK) Act, which requires members to be transparent about investments made by them, their spouses and children. Lawmakers could discuss a bill that would make it harder for such violations to happen in the future. For example, the TRUST in Congress Act (HR336), which enjoys strong bipartisan support in the House, would require members of Congress, their spouses and dependents to place investments in a blind trust until until they leave Congress.

House Ways and Means Committee

On Wednesday, the committee will hold a hearing entitled “Overcoming racism to advance economic opportunity.” No witnesses were named.

The committee is likely to explore issues within its purview, such as taxation, which could be leveraged to overcome any potential lingering effects of historic racism. For example, lawmakers could discuss the president’s proposal to tax the unrealized capital gains of wealthy people, 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 “President’s health and human services budget for fiscal year 2023during which the following witnesses will testify:

  • Xavier Becerra (Secretary, Department of Health and Social Services)

On March 28, President Biden unveiled his budget request for fiscal year 2023. Secretary Becerra will testify on proposed funding for the Department of Health and Human Services (HHS), which includes funds for future pandemics, additional vaccines and health equity, among others. 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 Fiscal Year 2023 Budget, and the 2022 Filing Seasonduring which the following witnesses will testify:

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

President Biden’s budget request for fiscal year 2023 contains $14.1 billion for the IRS, or $1.5 billion or an increase of nearly 12% from its enacted level for fiscal year 2022 It specifically calls for additional resources to improve the taxpayer experience, expand 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 facilitate more oversight. efficient corporate and high income tax filings. Commissioner Rettig is expected to answer questions about how the IRS would use this funding. It should also provide an update on the current tax filing season.

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

  • Ventris Gibson (Director of the Mint, Treasury Department)

  • Paul Rosen (Assistant Secretary for Investment Security, Treasury Department)

On Wednesday, the Housing, Transportation and Community Development Subcommittee will hold a hearing entitled “Advance public transport in small towns and rural areas under bipartisan infrastructure lawduring which the following witnesses will testify:

  • Ryan Daniel (General Manager, St. Cloud Metro Bus)

  • Scott Bogren (Executive Director, Community Transportation Association of America)

  • Baruch Feigenbaum (Senior Managing Director, Transportation Policy, Reason Foundation)

The Infrastructure Investment and Jobs Act (IIJA, PL117-58) was signed into law in November 2021. It contains funds to help small towns and villages provide clean water, restore ports , improve road projects and expand broadband access. Lawmakers should ask how the IIJA is being implemented just months after its enactment.

FISCAL AND FINANCIAL DECLINE

In case you missed it…

  • President Biden sent his fiscal year 2023 budget request to Congress last week, kicking off the next appropriations season just weeks after the previous one ended. The budget proposed $5.8 trillion in total spending, about $200 billion less than President Biden’s request for fiscal year 2022. During the unveiling of the budget request, President Biden said it revealed the administration’s three spending priorities: (1) fiscal responsibility, (2) safety and security, and (3) investments needed to build a better America. Brownstein’s tax policy team has summarized and analyzed the budget request and costing of key programs, which can be found here.

  • The House passed retirement security legislation aimed at making it easier for Americans to save. The Securing a Strong Retirement Act (HR2954), also known as “SECURE 2.0”, would promote retirement security by, among other things, providing for the automatic enrollment of employees in certain plans and increasing the age at which participants must begin receiving mandatory distributions. The Joint Committee on Taxation issued a estimate of the bill this week that revealed it would add $93 million to government coffers. The package is now heading to the Senate, where lawmakers are working on their own retirement package. Senate Health, Education, Labor and Pensions (HELP) Committee Chair Patty Murray (D-WA) is already working, for example, with Senate HELP Committee Member Richard Burr (R-NC ), who also sits on the Senate Finance Committee, on a package she aims to move out “later this spring.”

UPCOMING ACTIVITY

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

Congress

Tuesday, April 5

Senate Budget Committee

Corporate Profits Soar as Prices Rise: Are Corporate Greed and Profit Fueling Inflation?

Thursday, April 7

House Administration Committee

Consideration of stock trading reforms for Congress

Administration

Wednesday 6 April

Consumer Financial Protection Bureau

Consumer Advisory Council Meeting

Thursday, April 7

Treasury Department

Financial Research Advisory Committee Meeting

Consumer Financial Protection Bureau

Meeting of the Advisory Council of Credit Unions

Private sector

Tuesday, April 5

Peterson Institute of International Economics

Fiscal policy in the event of low interest rates

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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