July 15, 2021
Senate Finance subpanel holds competitiveness hearing
The Senate Finance Committee Subcommittee on Fiscal Responsibility and Economic Growth July 14 held a wide-ranging hearing, "Defending and Investing in U.S. Competitiveness," that included discussion of offshoring, labor and environmental standards in the context of trade agreements, the supply chain, climate change, cryptocurrency, and the need for investments in human capital, particularly childcare. The Senate has passed a bill on competition that was not considered by the Committee and was not a focus of the hearing today, though some goals expressed by members are consistent with the bill as lawmakers are responding to top-down, state-funded technology incentives by other nations, and the vulnerabilities of the US supply chain exposed by the pandemic.
In an opening statement, Subcommittee Chair Senator Elizabeth Warren (D-MA) said the US competing in a global economy has for too long meant enriching large corporations. The goal of economic competition should be making the domestic economy strong and raising the standard of living for the American people, which means investing in American jobs and workers, including through childcare and early education, she said. Ranking Member Bill Cassidy (R-LA) lamented China's lack of investment in environmental and labor protections and other practices.
Testimony is available here and additional information is available in the attached Tax Alert.
Senate Finance competitiveness hearing