Today In Washington
Source: AEO Government Relations Team, Madison Services Group
Appropriations Watch: On the Clock Day 3
House GOP Leadership has pushed a vote on a two-week continuing appropriations resolution (CR) to Thursday. The CR vote — scheduled for today — was delayed yesterday due to opposition from the House Freedom Caucus who are advocating a CR that goes to December 30, citing the two-week extension as giving Democrats too much leverage in negotiations. Congressional GOP Leadership eventually decided to go ahead with a CR that expires on December 22 due to Senate rules that would require at least eight Senate Democrats to pass the spending measure. As a reminder, the federal government is operating on a CR that expires on Friday.
Tax Reform Update
Today, the Senate is expected to begin 10 hours of debate on a motion to conference with the House on tax reform. Among the issues conferees will have to reconcile is the treatment of pass-through entities. The House bill generally taxes pass-throughs at a 25% tax rate. The Senate bill provides a 23% tax deduction. The U.S. Chamber of Commerce, an initial supporter of tax reform, is advocating for the removal of the corporate Alternative Minimum Tax (AMT). The corporate AMT was a last-minute addition to the Senate bill, intended to pay for an increase of the pass-through deduction from 17.4%. The Senate is expected to vote on the measure tomorrow.