Upcoming Tax and Financial Services Week, November 29, 2021 | Brownstein Hyatt Farber Schreck

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

What to watch

On Friday, November 19, the House passed the Build Back Better Act 220-212. The only House Democrat to vote against the passage was Rep. Jared Golden (D-ME).

The vote came after the Congressional Budget Office (CBO) released the final scores for the Build Back Better Act. Overall, the CBO estimated the legislation would increase the national deficit by $367 billion over 10 years. The estimate did not include revenue generated from proposed tax enforcement funding, which Democrats say could raise as much as $400 billion over a decade, though that estimate was disputed by Republicans. . The growing CBO score deficit did not lead centrist Democrats to revoke their support for the bill.

The bill is now sent to the Senate for consideration, but major issues still need to be resolved. Some changes will be technical in terms of maintaining the Byrd Rule compliant layouts, while others will be substantive.

Congress is also due to move this week to enact government funding. Earlier this year, Congress passed a Continuing Resolution (CR) that extended government funding through this Friday, December 3. Neither house has yet formally introduced legislation to extend government funding, but House Appropriations Committee Chair Rosa DeLauro (D-CT) is expected to soon introduce an RC that would extend current funding. The duration of the next RC is an open question. This could be done during the second half of January or February, although the owners were previously considering a shorter-term extension until December 17.

Congress must also tackle the debt ceiling in the coming weeks. Treasury Secretary Janet Yellen, who will testify before both houses this week, has estimated that the government will no longer be able to meet its obligations by December 15.

Finally, the Senate will also resume consideration of the National Defense Authorization Act (NDAA) this week, which it began before the Thanksgiving break. The deadline for tabling first-degree amendments was today at 3:30 p.m. A closing vote is expected at 5:30 p.m. today.

On the floor

The House is not due to vote this week on tax or financial services legislation.

In addition to the NDAA, the Senate will vote to confirm Jonathan Kaplan as Ambassador to the Republic of Singapore and a number of US District Attorneys.

In committee

Senate Banking Committee

On Tuesday, the plenary committee will hold a hearing entitled “Treasury and Federal Reserve Oversight through the CARES Act: Building a Resilient Economyduring which the following witnesses will testify:

  • Treasury Secretary Janet Yellen
  • Jerome Powell, Chairman of the Board of Governors of the Federal Reserve

Under the CARES Act (Coronavirus Aid, Relief and Economic Security Act), signed into law in March 2020, the Treasury Department and the Federal Reserve were directed to take a series of measures to provide economic assistance to those affected by the pandemic. of COVID-19. The law also included congressional oversight measures, requiring the Secretary of the Treasury and the Chairman of the Federal Reserve Board to testify regularly before Congress about pandemic response programs enacted under the CARES Act. As such, lawmakers should investigate the state of these programs. At the same time, lawmakers could go beyond these programs and ask questions about the overall economy, the provisions of the Build Back Better Act and other economic issues.

House Financial Services Committee

On Wednesday, the Committee of the Whole will hold a hearing titled “Oversight of the Treasury Department and Federal Reserve’s Pandemic Response,” at which the following witnesses will testify:

  • Treasury Secretary Janet Yellen
  • Federal Reserve Chairman Jerome Powell

Lawmakers should explore topics similar to those raised during the Senate Banking Committee hearing.

House Ways and Means Committee

On Thursday, the Trade Subcommittee will hold a hearing entitled “Supporting American Workers, Businesses, and the Environment in the Face of China’s Unfair Trade Practices.” The witnesses have not yet been named.

China has been accused of beating the playing field by employing unfair trade practices, such as preferential treatment of Chinese state-owned enterprises, inadequate enforcement of intellectual property rights and support for cyber theft. These alleged actions have had negative effects on American businesses. During this hearing, lawmakers could explore the extent of harm to American businesses and consider possible legislative responses.

Senate Finance Committee

The committee has no hearings or increases scheduled for this week.


Tax and financial rewind

In case you missed it…

  • On Tuesday, the Congressional Budget Office (CBO) released additional information on certain provisions of the Build Back Better Act. Additional information included slides on the economic effects of expanding subsidized child care and providing universal preschool, providing a federal paid family and medical leave program, and expansion of home and community services in Medicaid.
  • On Tuesday, the joint committee on taxation (JCT) updated its distributional analysis on the revenue provisions of the Build Back Better Act. The updated figures indicate that taxpayers earning more than $1 million would face an average tax rate of 33.1%, rather than the previously estimated JCT of 28.2%.

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.

Administration

Monday, November 29

Federal Reserve Governor Michelle Bowman
Central banks and indigenous economies

Tuesday, November 30

Vice Chairman of the Federal Reserve Board, Richard Clarida
Federal Reserve Independence: Foundations and Responsibilities

Community Development Financial Institutions Fund
Community Development Advisory Board Meeting

Thursday, December 2

Security and Exchange Commission
Investor Advisory Committee Meeting

Treasury Department
Meeting of the Federal Insurance Advisory Committee

Other

Tuesday, November 30

Banking Policy Institute
International Banking Regulatory Forum

Wednesday, December 1

Aspen Institute
Rebuilding the post-pandemic economy

Thursday, December 2

American Institute of Enterprise
Fed Supervision and Regulation

Peterson Institute of International Economics
Labor market conditions and inflationary pressures

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