Over the next several weeks, we will see some activity in the House around Tax Day and the fiscal year (FY) 2024 budget resolution process. 

First, April 17 is Tax Day this year, and we may see action in the Committee on Ways and Means on messaging bills from both sides of the aisle. Republicans will likely amp up their concerns about the Internal Revenue Service's (IRS) enforcement activity, while also highlighting perceived deficiencies in the audit selection process and persistent processing delays.

In addition, Chairman Jason Smith (R-MO) is sure to emphasize GOP support for legislation to make permanent the individual and small business provisions of the Tax Cuts and Jobs Act (TCJA). Businesses are hopeful that Republicans will also consider highlighting the need for the section 174 amortization fix and the extension of 100% bonus depreciation, as well as the need to address the interest expense deduction limitation. Meanwhile, Democrats are likely to focus on the clean energy tax incentives for production, manufacturing and consumers, and other small business relief provisions under the Inflation Reduction Act (IRA). Moreover, they will underscore the populist appeal of the President's budget proposal to tax the accumulated wealth of billionaires. 

Turning to the FY 2024 budget, it's budget resolution season! The House will start by establishing revenue targets and limits for discretionary government funding bills (i.e., non-entitlement spending) for the next fiscal year, which begins October 1, 2023. The GOP budget resolution will certainly draw a sharp contrast to President Biden's budget proposal and play a role in the debt limit debate. The House Republicans' recently issued Views and Estimates will figure prominently, as each committee presented its priorities for this Congress within their respective policy jurisdictions. In the tax space, the Committee on Ways and Means Republicans broadly emphasized "policies that benefit American workers, families, farmers, and small businesses." While many corporate taxpayers are interested in provisions such as those addressing research and development costs, the deductibility of interest expense, and (for those more forward-looking) possible legislative responses to other countries' adoption of Pillar Two proposals, Chairman Smith has not yet cited these as policy priorities in his broader tax agenda.

Time will tell if Chairman Smith's position softens and business taxpayers are able to advance their priorities before the TCJA "fiscal cliff" arrives in 2025. #TaxTake

Upcoming Speaking Engagements and Events

On March 31, Loren will co-chair the government panel at the 23rd Annual U.S. and Europe Tax Practice Trends Conference in Zurich.

In the News

Marc discussed the upcoming release of the Joint Committee on Taxation's (JCT's) blue book in Bloomberg Tax. "There's a big emphasis on this blue book because there's a lot of major legislation that was enacted in the last Congress that doesn't have much or any . . . legislative history," he said. "This is an opportunity for some greater explanation."

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