Time to get down to business

Presented by Global Business Alliance: Delivered every Monday by 10 a.m., Weekly Tax examines the latest news in tax politics and policy.

Nov 28, 2022 View in browser   By Bernie Becker Presented by ALRIGHT, IS IT TIME YET? So now that this Thanksgiving holiday is out of the way, is it time for year-end tax negotiations to start heating up? Well, we'll see about that. Democrats and Republicans have had some initial conversations about where taxes stand in fuller year-end discussions, according to people on the Hill. But there's a lot that remains in flux. Democrats still need to figure out what improvements to the Child Tax Credit are at the top of their list in negotiations with Republicans, in case there can be some larger deal that would also involve expanded tax incentives for businesses. That's far from all, either: In the end, taxes are likely but a supporting player in the year-end drama, so the broader bipartisan talks over a more ambitious government funding measure and other items will certainly influence what can get done on taxes. For now, the big date to remember is about two-and-a-half weeks away — Dec. 16, which is when the current round of government funding runs out and the current deadline for top appropriators to score that larger spending measure. But here's another date to keep in mind, as Tax Notes' Doug Sword pointed out recently — Dec. 6, the date of the Georgia runoff for Senate , after which both parties will know for sure the composition of next year's Congress. Once that happens, congressional leaders might have all the information they need to really get down to business. And just as a reminder — here's what lawmakers potentially are considering on the tax side, outside of improvements to the child credit and priorities for business, like allowing immediate deductions for research costs and a more generous write-off for interest on debt. There's further retirement security legislation, which top tax writers in both parties would like to get done; the "regular" tax extenders, those frequently expiring short-term incentives that now take on less importance following the Democrats' tax-and-climate measure over the summer; and potential relief for taxpayers who might receive tax forms for the first time for payments they received through apps like Venmo and PayPal. MORE ON EVERYTHING IN A BIT, but first thanks for coming to the "let's hope the United States soccer team can score some more goals soon" version of Weekly Tax. It's like a golden anniversary times nine: Today marks 440 years since William Shakespeare married Anne Hathaway — no, no, not that one. Help us get smart. Send your best tips and feedback. Email: bbecker@politico.com , bfaler@politico.com , bguggenheim@politico.com and teckert@politico.com . You can also reach us on Twitter at @berniebecker3 , @tobyeckert , @brian_faler , @ben_guggenheim , @POLITICOPro and @Morning_Tax .   A message from Global Business Alliance: When international companies invest in the U.S., it's a vote of confidence in America's workforce. These employers have invested $5 TRILLION into the U.S. economy. They're reinvesting over $71 billion of their profits into R&D activities annually, which supports high-quality jobs, drives America's innovation advantage and spurs economic growth. GBA represents some of the most well-known brands in the world. Learn more about our work and explore how global investment strengthens our economy at globalbusiness.org.   LOOKING OVERSEAS: As we and others have noted, this December might be the last chance for a pretty sizable tax bill for quite a while, given the legislative gridlock that's expected to return with divided government next year. That means that any measure that would get the U.S up to date with the global minimum tax, for which the Biden administration was instrumental in finding initial approval, will have to wait. But that might not be the case in Brussels: EU finance ministers have been eyeing a meeting next week for potentially finding a way to implement the 15 percent minimum tax, as Law360's Todd Buell reported last week. As you might recall, Hungary is alone among the EU's 27 members in blocking the minimum tax, with officials there saying they're concerned it would hurt the country's tax system and economy. But there's also another issue at play here: Prime Minister Viktor Orban's government in Budapest and Brussels are in a staredown over billions of euros worth of various payments, which the EU has suspended because of concerns over rule-of-law issues in Hungary. It's hard to imagine Orban's government reversing field on the minimum tax as long as those payments are in flux, and the European Commission found last week that changes made in Budapest weren't enough to shake them loose , as our Paola Tamma and Jakob Hanke Vela reported. Meanwhile, some of the big names within the EU, like France and Germany, have been talking about implementing the minimum tax on their own if there's no action by Brussels by the end of the year. Both the payments for Hungary and the global minimum tax remain pressing items on the EU's to-do list, so we'll have to see how things develop in the coming weeks — and how interrelated discussions over those two issues might become. OTHER ITEMS ON THE DOCKET: Still no word on how soon the Senate Finance Committee might be able to take up Danny Werfel's nomination to be next IRS commissioner. Democrats have noted that at least some Republicans have had kind words about Werfel's just over half a year as interim IRS chief. But lots of conservatives have less than fond memories of those seven months, as Tax Notes' Jonathan Curry reported — throwing around words like "cover-up" to explain Werfel's tenure, in which an internal IRS review found significant screw-ups but no partisan targeting when it came to policing nonprofits. But also just keep in mind: Republicans won't be able to submarine Werfel's nomination on their own, given that Democrats will still control the Senate next year. And ICYMI: Pro Tax's Brian Faler did a deep dive last week on the Supreme Court giving the green light to House Democrats getting former President Donald Trump's tax returns. Long story short: House Ways and Means Chair Richard Neal (D-Mass.) has a lot of questions to answer, and not a lot of time in which to get those answers ready. Perhaps the most pressing questions: How much information is in those Trump returns, and does Neal, his staff and the Joint Committee on Taxation have enough time to comb through them as thoroughly as they'd like.   GO INSIDE THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO is featuring a special edition of our "Future Pulse" newsletter at the 2022 Milken Institute Future of Health Summit from Dec. 6 to 8. The newsletter takes readers inside one of the most influential gatherings of health industry leaders and innovators solving the biggest global health issues to ensure a healthier, more resilient future for all. SUBSCRIBE TODAY TO RECEIVE EXCLUSIVE COVERAGE .     Want to receive this newsletter every weekday? Subscribe to POLITICO Pro . You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Around the World Reuters: " Spain energy tax to raise 400 mln euros less than expected, minister says." Bloomberg: " Germany Sets Windfall Tax at 90% for Clean Power Generators." Also Reuters: " Brazil's Lula to prioritize tax reform early in govt, aide says." Also Bloomberg: " Norway to Ease Taxes for Unlisted Salmon Farmers on Price Drop."   A message from Global Business Alliance:   Around the Nation Washington Post: "Youngkin warns of recession but vows to pursue tax cuts — cautiously." The Boston Globe: " The 'millionaires tax' is a big change for Massachusetts . What happens now?" Associated Press: " Extended gas tax holiday , pandemic pay on lawmakers' agenda" in Connecticut.   POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP .     Also Worth Your Time New York Times: " The Expanded Child Tax Credit Is Gone . The Battle Over It Remains." Also the NYT: "Herschel Walker, Running in Georgia, Receives Tax Break for Texas Residents ." CNBC: " IRS warns taxpayers about new $600 threshold for third-party payment reporting." Did you know? The first 0-0 tie in the 2018 World Cup didn't occur until the tournament's 37th game.   A message from Global Business Alliance: When international companies invest in the U.S., it's a vote of confidence in America's workforce. To date, these companies have invested $5 TRILLION into the U.S. economy. American scientists and engineers at international companies are driving our nation's innovation advantage, spurring the discovery of new products and processes that contribute to U.S. economic growth. In fact, international companies reinvest over $71 billion of their profits into U.S.-based R&D activities annually, supporting 13 percent of all R&D performed by U.S. companies. The Global Business Alliance (GBA) represents some of the most well-known brands in the world and is the premier advocacy resource for international companies operating in the United States. Learn more about our work and explore how global investment strengthens our economy at globalbusiness.org.     Follow us on Twitter Toby Eckert @tobyeckert Bernie Becker @berniebecker3 Brian Faler @brian_faler   Follow us

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