Senate Wraps Up For The Summer With An Infrastructure Bill And A Budget Resolution

The Senate passed the $1 trillion infrastructure bill with 19 GOP votes. Nearly half the bill reflects new spending. The bill contains no corporate tax increases to finance new infrastructure investments. It now goes to the House where Speaker Nancy Pelosi must decide whether to allow amendments or simply accept the Senate version.  

No crypto fix. The Senate bill still includes the new transaction reporting requirements for cryptocurrency that were worked out by Treasury and GOP Senator Rob Portman. An industry effort to water down the new IRS disclosure rules never got a vote on the Senate floor. Backers of narrower disclosure hope to get another chance in the House. TPC’s Howard Gleckman says the Senate erred in rushing through the new requirements without understanding their ramifications. TPC’s John Buhl describes why designing the rules is so hard.            

Senate’s “vote-a-rama” ends and its recess begins. The Senate started debate yesterday on its $3.5 trillion budget resolution and concluded its usual budget-related marathon voting session Senators offered scores of amendments. Most were non-binding but make good press releases and attack ads. The House will take up this legislation and the infrastructure bill when it returns.

Senate Dems still want corporations to pay their “fair share.” Sens. Elizabeth Warren, Angus King, Jeff Merkley, Ed Markey, and Sheldon Whitehouse, and Rep. Don Beyer released a bill called the Real Corporate Profits Act of 2021. It would levy a 7 percent surtax on book income above $100 million. The lawmakers say the bill  would raise $700 billion in tax revenue over 10 years. 

Congress can protect families whose monthly Child Tax Credit Payments are too high. TPC’s Elaine Maag writes that for some parents, changes in family or financial circumstances could result in an annual credit that is smaller than their total advance payments. Thus, they could end up owing the IRS a big check at tax time. If Congress extends the advance credits beyond this year, Elaine suggests families should continue to opt out of monthly payments or be allowed to combine smaller monthly payments with an additional annual payment at tax time. She also says the IRS should forgive overpayments for low-income households and give higher income families more time to repay excess benefits. 

Former President Trump’s Tax Returns to the House? Maybe later. District Court Judge Trevor McFadden, a Trump appointee, will hear arguments in November on whether the former president can block the release of his tax returns to the House. 

Congress is not in session. The Daily Deduction will post Mondays until Congress returns.

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