The United States (US) House and Senate this week were in session at the same time for a regular week of business for the first time since July. For both chambers of Congress, the focus is on a continuing resolution (CR), to extend government funding beyond 30 September and into December. After the midterm elections, and before the December expiration of the CR currently being negotiated, Congress is expected to try to assemble a year-end bill that could address tax and possibly retirement issues, in addition to government funding that could extend through the remainder of the fiscal year.
The tax press is reporting that House Republicans will release their “Commitment to America” November election platform on 23 September, laying out what a Republican majority House would attempt to legislate if they take control of the chamber. The tax aspect of the plan reportedly will include the 2017 tax rate cuts for individuals, a 20% tax rate on passthrough income, and bonus depreciation. Extending Tax Cuts and Jobs Act expiring provisions beyond their 31 December 2025 expiration will be at the core of the Republican platform, according to a Republican House Ways and Means Committee member. Proposals to rollback provisions in the recently enacted Inflation Reduction Act also reportedly are under consideration.
The Republican proposals will stem from seven task forces that were created in 2017 by House Minority Leader Kevin McCarthy.
The Organisation for Economic Co-operation and Development (OECD) on 12 September hosted a public consultation meeting on the Progress Report (pdf) on Amount A of Pillar One, which had been released by the OECD Secretariat on 11 July 2022 in connection with the ongoing OECD/G20 BEPS1 2.0 project. The Progress Report describes the proposed design for Amount A, reflecting the mechanics for the new nexus and profit allocation rules being developed under Pillar One with the aim of providing market jurisdictions with a greater share of the taxing rights over global business income. Three panels discussed key elements of the proposed design for Amount A, including the marketing and distribution profits safe harbor, the approach for eliminating double taxation with respect to Amount A and other aspects of the rules.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (United States), International Tax and Transaction Services, Washington, DC
- Arlene Fitzpatrick
- Joshua Ruland
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
