Washington Weekly - March 15

This Week:

The Senate is in session. The House is in recess.

Federal:

Budget:  After President Biden’s $6.9 trillion budget was made public last week, House Republicans all but rejected the proposal.  One facet of the President’s budget includes a significant reduction in the deficit, with GOP House members looking to trim non-defense and non-Medicare spending as well.  On Tuesday, the Congressional Budget Office estimated that 41% of current, noninterest outlays would have to be reduced over the next ten years to achieve a balanced budget.  Provisions of the Trump Administration’s 2017 tax legislation will certainly be a target for Congressional Democrats in the coming weeks, as many of the provisions of that bill are up for extension.

Banking: With the collapse of Silicon Valley Bank and Signature Bank, both chambers will be holding hearings on the industry.  Progressive Democrats in Congress will be looking to repeal the 2018 banking deregulation legislation, citing the loosening of stricter regulation as a factor in the collapse of the two banks.  Moderate Democrats may not be on board, but there will be a lot of focus on the issue from progressive voices like Sen. Elizabeth Warren (D-MA) and Rep. Katie Porter (D-CA).

Senate: Some key figures in the Senate are unavailable for votes, due to their respective health recoveries.  The most obvious is Senate Minority Leader Mitch McConnell (R-KY), who was recently release from the hospital and recovering after a fall; Sen. John Fetterman (D-PA) who continues to recover at Walter Reed Medical Center but could be released in the next two weeks; and Sen. Dianne Feinstein (D-CA) is recuperating after being released from the hospital last week (ASA wishes them speedy and full recoveries).  With partisan margins as close as they are in both chambers, some controversial votes may need to be held back, as those absences result in a 49-49 partisan split in the Senate, with Vice President Harris casting the tie-breaking vote. 

ASA Advocacy Action:

Opposition to Proposed Tax Increases: ASA joined with 85 trade associations and sent a letter to House leaders opposing tax increases in the President’s budget proposal.  From the letter:

“…the President’s budget would raise the top rates paid by pass-through businesses and corporations alike, increase the Net Investment Income Tax and expand it to cover the active business income of pass-through business owners, make permanent the harmful loss limitation rules, make it harder for family-owned businesses to survive from one generation to the next by gutting the existing grantor trust rules, nearly double the tax rate on capital gains, and impose a new minimum tax on larger family businesses that appears to redefine how income is measured. The combination of these policies would raise top tax rates on these businesses to close to 50 percent, both on their operating profits and on any gain when they sell the company.”

Politics:

President Biden Job Approval (RCP Average): 44% Approve – 52% Disapprove. The House currently has a composition of 222 Republicans to 213 Democrats. The Senate is comprised of 51 Democrats and 49 Republicans.