Washington Weekly - March 22

This Week:

The House and Senate are in recess.

Federal:

Budget & Taxes: After the release of the Biden Administration’s budget proposal two weeks ago, some of the funding portions of the measure are becoming clearer.  In particular:  increasing the corporate tax rate from 21%-28% (making it retroactive to January 1, 2023); expansion of the NIIT (Net Investment Income Tax) by 1.2%, increasing to 5% over $400,000; grantor trusts to be subject to estate tax; increasing the top income tax bracket to 39.6% and much more.  Small, multigenerational family-owned businesses appear to be as exposed to many of these tax increases as major corporations.  Keep in mind that this proposal was basically DOA on its arrival in the Republican-controlled House, but it does provide an indication where the Biden Administration and Congressional Democrats will be working from.  House Republicans are expected to release their own budget in the next few weeks, with many curious as to how spending cuts will be implemented without reducing funding for Medicare and defense. 

Elephant in the Room:  As of this writing, it is expected that former President Donald Trump will be indicted, as early as this week, in New York.  The anticipation of this legal action against the former President is unprecedented, but has started to coalesce Congressional Republicans behind him.  Including some who have begun to step outside of his orbit, as they see this as a purely political move.  What the political reverberations are for 2024 remains to be seen but it could have an immediate impact on politics on Capitol Hill.  Stay tuned.

Healthy H₂O Act: Last week, Sens. Tammy Baldwin (D-WI) and Susan Collins (R-ME) introduced S. 806, The Healthy H₂O Act.  This legislation, which ASA also supported at the end of the last Congress, would provide grants, and drive positive public health benefits for millions of rural and underserved communities that have been overlooked by other federal clean water initiatives.

ASA Legislative Fly-In: Next week, ASA President Katie Poehling-Seymour, Advocacy Council Chair Jeff New, Government Affairs Task Group Chair Kenny Griffin and over twenty other ASA leaders will take to Capitol Hill to meet with members of the Senate and the House to represent the PHCP-PVF industry.  Issues will include a number of tax and regulatory issues that are facing the industry in the 118^th Congress.  Updates to come!

ASA Advocacy Action:

California AB 1290: ASA joined 25 other industries in California to oppose AB 1290 – a bill that would ban most plastic packaging.  It was also introduced after two previous bills signed into law (SB 54 and SB 343) have yet to be fully implemented. 

Politics:

President Biden Job Approval (RCP Average): 43% Approve – 51% Disapprove. The House currently has a composition of 222 Republicans to 213 Democrats. The Senate is comprised of 51 Democrats and 49 Republicans.