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March 21, 2022

What to expect in Washington (March 21)

The Senate will hold a procedural vote on the America COMPETES Act (H.R. 4521) at 5:30 p.m. today, which is part of the necessary process of amending the bill with the text of the Senate-passed USICA so the two chambers can go to conference and resolve differences between the bills. Axios reported that Commerce Secretary Gina Raimondo is hosting former national security adviser H.R. McMaster and Sen. Todd Young (R-IN) for a virtual conversation today about semiconductor manufacturing, part of a bid to enlist former Trump administration officials and other Republicans “to depoliticize and add urgency to the legislation.”

The House is out of session this week. There is a House Republican retreat in Florida. A week from today, on March 28, the President’s FY2023 budget will be released. There are no hearings at the Senate Finance Committee this week. The Senate Judiciary Committee confirmation hearings for Judge Ketanji Brown Jackson, President Biden’s nominee for the Supreme Court, begin today.

Tax – A tax treaty between the US and Chile, “The Convention between the Government of the United States of America and the Government of the Republic of Chile for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital,” is on the agenda of a Senate Foreign Relations Committee business meeting on Wednesday, March 23.

The Wall Street Journal March 19 reported of recent foreign tax credit regulations, “Companies are just beginning to get a sense of which foreign tax credits they may no longer claim and how the rules affect their profits. Analysts say many more companies are likely to provide details on how the rules affect their financial statements and disclose any impact in first-quarter earnings reports that are due out this spring… The rules say the government is responding to the proliferation of what it calls ‘novel extraterritorial taxes,’ such as European digital-services taxes that might otherwise be claimed as foreign tax credits.”

Energy – NBC reported that the situation in Ukraine has put lawmakers “in a delicate spot: Some prominent leaders say they should seize the moment and aggressively promote an ambitious clean energy agenda, while others want to pump the brakes on that strategy. For some liberal lawmakers, there is reluctance to use the bloody conflict in Ukraine — and the soaring U.S. gas prices stemming from it — to make the case that America needs to wean itself off fossil fuels and fully embrace electric vehicles and renewable energy.” This comes amid speculation that a reconstituted reconciliation bill could focus on climate initiatives.

Congress – Rep. Don Young (R-AK), the longest-serving House Republican, in his 25th term, passed away on Friday while traveling home to Alaska. This leaves the House party ratio at 222-210, with three Republican vacancies.

Tuesday, March 22 (11:30 a.m.), is the EY Webcast, “BEPS 2.0: Implications of Pillar Two for businesses.” Register.


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