The post-election lame duck session has gotten off to a late start due to the delayed election results (including tomorrow's run-off for the Georgia Senate seat), Congressional leadership elections, and the need to address the threatened rail strike. All eyes, however, continue to be focused on a potential omnibus appropriations bill (omni) to serve as a vehicle for a lame duck tax bill. 

1. What is the omni? The omni is a package of smaller appropriations bills that need to be passed each year to fund the federal government and avoid a government shutdown.
2. What impact does the omni have on tax legislation? Traditionally, the omni serves as a legislative vehicle to attach other time-sensitive legislation, including pending tax legislation. Without an omni, the prospects for tax legislation being enacted this year would be significantly reduced.
3. Could tax legislation move by itself or with another piece of legislation? Given the demands on floor time at the end of the year, it is unlikely that tax legislation would be considered on a stand-alone basis and, while there may be other pieces of legislation moving before year-end, the omni represents the best opportunity for tax legislation this year.
4. What is the deadline for enacting an omni? The federal government is currently operating under a continuing resolution (CR) - temporary funding that is set to expire on December 16. Congress may enact a short-term CR for another week to continue negotiating a potential omni before year-end and, if those negotiations fail, a longer-term CR that will expire sometime next year.
5. Could tax legislation move on a CR? Most CRs are enacted on a "clean" basis without any unrelated legislation attached, making them a less likely vehicle for potential tax legislation.
6. Will there be an omni? An omni is viewed as a much more favorable way to fund the federal government, although political considerations may weigh into the parties' willingness to strike a deal for the full fiscal year. The retirement of Senators Pat Leahy (D-VT) and Richard Shelby (R-AL) is a significant factor in favor of an omni as a "legacy" item for both leaders of the Senate Committee on Appropriations.
7. Assuming there is an omni, will a tax title definitely be attached to it? An omni provides a potential vehicle for a tax title but the attachment of one is not guaranteed, as the parties will have to negotiate a bipartisan agreement on the scope, contents and revenue implications of a tax title.
8. What potential items will be included in an omni tax title? There are a number of bipartisan tax relief proposals including a retirement savings incentives package, the section 174 amortization fix, and tax extenders that may be considered. Democrats are interested in including an extension of the expanded child tax credit and negotiations over this provision may impact the likelihood and scope of any agreement on a tax title.
9. Will there be any tax increases in an omni tax title? Given the need for bipartisan agreement on an omni tax title, tax increases are unlikely to be considered.
10. What happens if there is no omni or no tax title in an omni? Several tax provisions being considered for inclusion in an omni tax title enjoy significant bipartisan support. Even if these provisions are not enacted this year, there is realistic hope that they would be considered in the next Congress, even with divided government.

Hopefully, the resolution of the Georgia Senate election this week will spur Congressional leaders to move forward on an omni and, with that, start negotiations in earnest on a lame duck tax title. #TaxTake

Upcoming Speaking Engagements and Events

Loren will moderate a panel titled "The OECD & Global Tax Policy: What's Next?" at the DC Bar 2023 Tax Legislative and Regulatory Conference on January 26.

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