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Where's a tax bill stand among Senate to-dos?

Presented by the National Association of Manufacturers: Delivered every Monday by 10 a.m., Weekly Tax examines the latest news in tax politics and policy.
Apr 01, 2024 View in browser
 
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By Bernie Becker

Presented by the National Association of Manufacturers

Driving the day

NO JOKE HERE: Here’s another obstacle to add to the list for the bipartisan tax bill — the Senate’s to-do list.

Our colleagues at Inside Congress recently ran down how they expected the Senate to use its expected 15 weeks of floor time before November’s election.

And let’s just say the tax measure negotiated by Senate Finance Chair Ron Wyden (D-Ore.) and House Ways and Means Chair Jason Smith (R-Mo.) appeared to be far from the most pressing priority — something that is probably somewhat (but maybe not totally) related to the fact that key Senate Republicans continue to show no interest in moving the bill forward in its current form.

Among the issues that the tax bill might have to compete with for attention: Confirming judges, rebuilding a bridge in Baltimore, rail safety, cannabis banking, an FAA reauthorization, the farm bill, targeting TikTok and the impeachment trial of Alejandro Mayorkas, the Homeland Security secretary.

Looking ahead: One of the issues for the Wyden-Smith plan is that it almost certainly doesn’t have 15 weeks’ worth of political viability left, even if there is no functional approaching deadline for getting expanded Child Tax Credit benefits to recipients.

In fact, the political deadline for the tax bill is probably just a fraction of 15 weeks, as there remain real questions about how long senators might remain interested past the tax filing deadline in two weeks.

MORE ON EVERYTHING in a bit, but first thanks for joining this extra special April Fool’s Day version of Weekly Tax — where we promise that we always draw the three-point line at the correct measurements.

Oh, the heyday of Gchat: Today marks an even 20 years since Google introduced an email service conveniently known as Gmail. (The date of the rollout was no accident, either.)

Forward us some good scoops.

Email: bbecker@politico.com, bfaler@politico.com, bguggenheim@politico.com and teckert@politico.com.

You can also reach us on X, formerly Twitter, at @berniebecker3, @Brian_Faler, @ben_guggenheim, @tobyeckert, @POLITICOPro and @Morning_Tax.

 

A message from the National Association of Manufacturers:

The 2017 tax reforms were rocket fuel for manufacturing in America, but pro-manufacturing provisions that help manufacturers create jobs, innovate, purchase equipment and grow have expired, harming our global competitiveness. The House has passed legislation to restore these provisions—with overwhelming support. Now manufacturers are counting on the Senate to finish the job and pass the bipartisan Tax Relief for American Families and Workers Act. Learn More.

 

STILL LOOKING AHEAD: As the Inside Congress team also noted, actually finishing off any of those legislative priorities would take up a good chunk of floor time, but failing initial procedural votes would not.

And that sets up the choices facing Senate Majority Leader Chuck Schumer, who was an early supporter of the Wyden-Smith tax plan, about how to proceed with the bill.

There are business lobbyists out there who say that supporters of the tax bill are within shouting distance of securing the roughly 10 Senate Republicans needed for the bill to cross the magic 60-vote threshold, even as most observers believe the tax deal is in serious trouble in the Senate.

So the questions facing Schumer are two-fold: If he believes that Democrats can get the votes, does he want to use what would be precious floor time on the tax bill instead of some of those other priorities?

And if Democrats don’t believe they can get the votes? Well, it wouldn’t take much floor time to have a failed procedural vote.

Now, one school of thought would argue not to bring the tax bill up for a vote just to see it immediately go down. But another way of thinking is that Democrats might want to force Senate Republicans to fully own the defeat of the tax bill, which would restore key tax breaks that the GOP’s historical allies in the business community have spent years fighting for.

A DIFFERENT KIND OF TAX VOTE: Voters in Kansas City head to the polls on Tuesday to decide whether to approve a new sales tax that would raise a couple billion dollars of new revenues to help the stadium situations for two local professional sports franchises, as The Kansas City Star has reported in full.

Major League Baseball’s Kansas City Royals are pushing to build a new downtown stadium, while the National Football League’s Kansas City Chiefs are seeking to do major renovations on the team’s existing set-up.

The proposal that voters will consider on Tuesday would put a 3/8-cent sales tax on the books for four full decades, through 2064, to raise that $2 billion in the long run.

There’s sort of a catch there, though — Jackson County, the home of Kansas City, already has a 3/8-cent sales tax that helps fund the stadiums for the Royals and the Chiefs.

That tax is scheduled to expire in 2031, and would continue even if voters oppose the current ballot measure on Tuesday. So in essence, supporters of the new proposal have made the case that people won’t actually face a higher tax burden, even if the ballot measure would lock in the current special sales tax for an additional 33 years.

So broadly speaking, why does this particular vote matter outside of Kansas City?

Well, for starters, it’s just the latest example of team owners seeking public money to help with stadiums, either from their current location or from jurisdictions hungry to attract professional teams.

Economists and experts basically from across the political spectrum believe that professional sports stadiums aren’t a good use of taxpayer resources. And yet, it’s still quite common for state and local governments to help out with arenas and stadiums.

The owners of the Chiefs and Royals have pushed hard for the current ballot measure, essentially arguing that it’s the only way to ensure that the teams stay in Kansas City for the long-term.

But the most recent example of teams seeking public money was an exception to that general rule — Virginia’s efforts to lure the National Basketball Association’s Washington Wizards and the National Hockey League’s Washington Capitals across the river to Alexandria were blocked by Democratic lawmakers in Richmond.

So let’s see what happens on Tuesday.

Another interesting factor to look out for moving forward on these issues: The firm of Jeff Roe, a prominent GOP operative who most recently worked for the super PAC supporting the presidential campaign of Gov. Ron DeSantis of Florida, is also running the campaign backing the sales tax increase.

 

Access New York bill updates and Congressional activity in areas that matter to you, and use our exclusive insights to see what’s on the Albany agenda. Learn more.

 
 

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Around the World

Reuters: “India's Congress bemoans 'tax terrorism' after second tax notice.”

Tax Notes: “U.S. Regulator Fines PwC Australia for Failure to Disclose Scandal.”

Bloomberg: “Thailand Takes First Step to Legalize Casinos to Aid Economy.”

 

A message from the National Association of Manufacturers:

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Around the Nation

Associated Press: “Tennessee lawmakers split on how and why to give businesses major tax help under fear of lawsuit.”

Missouri Independent: “Opposition remains for sprawling education bill expanding Missouri private school tax credits.”

New Jersey Monitor: “Gov. Murphy says proposed business tax won’t be permanent.”

 

SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.

 
 
Also Worth Your Time

Pro Energy: “Biden administration to hand out $4B in advanced energy tax credits.”

Bloomberg Tax: “SALT Workarounds Present Revenue Headache for 2025 Tax Talks.”

Wall Street Journal: “How a ‘Gorgeous’ Dior Bag Cost a Widow $61,000 in Tax Court.”

Did you know?

Gmail now has around 1.8 billion active accounts.

 

A message from the National Association of Manufacturers:

Competitive tax policies are critical to empowering manufacturers to innovate, grow, hire more workers, increase wages, expand facilities and invest in the future. But vital tax policies that support manufacturing in America—R&D expensing, interest deductibility and full expensing of capital purchases—have been allowed to expire. Allowing taxes to go up on innovators, job creators and America’s small businesses hurts everyone—and undermines our competitiveness against countries like China. The House has taken action to restore these policies, and now the National Association of Manufacturers is calling on the Senate to do the same. The bipartisan Tax Relief for American Families and Workers Act will ensure the tax code once again supports businesses’ ability to create jobs in the U.S. and compete in the global economy. The Senate must act now. Learn More.

 
 

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Bernie Becker @berniebecker3

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