TAX TAKE: When I'm Sixty-Four: Senate HELP Committee Advances Retirement Security Legislation
Despite partisan divides in Congress, policymakers continue to work in a bipartisan fashion to advance retirement legislation for consideration this year. In March, the House of Representatives passed H.R. 2954, the Securing a Strong Retirement Act of 2022 (commonly referred to as Secure 2.0), a $36 billion collection of retirement savings provisions, by a vote of 414 to 5.
Last week, the Senate Health, Education, Labor, and Pensions (HELP) Committee approved S.4353, the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act, or the RISE & SHINE Act, by unanimous voice vote. The Committee has issued a section-by-section summary of the bill.
The RISE & SHINE Act is intended to be combined with the Enhancing American Retirement Now (EARN) Act, that will be marked up by the Senate Finance Committee this week. The combined legislation will form the Senate version of Secure 2.0, setting the stage for House/Senate negotiations on a final package.
It is hoped that the negotiated package would then be considered during the lame duck session after the midterm elections, where it could serve as the foundation for a tax title that would also address tax extenders, expiring Tax Cuts and Jobs Act (TCJA) provisions and other bipartisan priorities. Thus, even taxpayers without a direct interest in Secure 2.0 have a vested interest in its success as it may serve as both the foundation and real driver for a lame duck tax package. #TaxTake
Upcoming Speaking Engagements and Events
On June 27, Loren will speak at the 2022 OECD International Tax Conference on the panel titled, "Pillar One: Part I."
Loren will speak on the "Transfer Pricing Debate" panel at the 2022 NABE Transfer Pricing Symposium on July 19.
In the News
We are pleased to announce that our Tax practice received numerous rankings in the 2022 editions of Chambers USA and Legal 500. Additionally, for the fourth consecutive year, we received the only Chambers USA Band 1 ranking in Government Relations: Specialist Tax Firms, a separate nationwide category.
In InvestmentNews, Jorge commented on the legislative prospects for the Republican proposed Middle Class Investment and Savings Act. He said if the bill is unsuccessful this year, the bills' sponsors "know Republicans are likely to take the majority in one or both chambers of Congress" so "these proposals are likely to feature in a Republican package next year."
Tax Notes reported on comments made by Loren at the 2022 Texas Federal Tax Institute regarding Treasury's proposed allocation approaches for CFC taxes. Loren said if the GILTI regime is a qualiﬁed CFC regime under Pillar 2, taxes paid at the U.S. shareholder level would have to be allocated back down to the CFC level. If the resulting effective tax rate is high enough in those CFCs' respective jurisdictions, countries would then be precluded from imposing a qualified domestic minimum top-up tax.
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