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The House is set to vote today on a continuing resolution (CR) to extend government funding through December 20, along with extensions of other programs, including some health extenders and Medicare provisions, then be out of session until after the elections, with votes cancelled for Thursday and Friday. The Senate could take up the CR tonight. The process can't be expedited without the support of all Senators, and Republican leaders warned against protracting consideration of a bill that is going to pass.

To that end, the Senate agreed by unanimous consent last night that when the Continuing Resolution (H.R. 9747) is received from the House, the Senate will proceed to its immediate consideration, with up to two hours for debate and no amendments or motions in order to the bill.

Expected passage of the government funding measure as soon as today is expected to mostly conclude Congress' business until after the elections. The elections will have a major effect on how a longer-term government funding measure and other matters are handled during an expected lame-duck session in November/December. House Speaker Mike Johnson (R-LA) already warned he won't allow a pre-holiday omnibus bill to extend all government funding through September 2025.

Presidential race — Neither presidential candidate has released a fully developed tax plan, but both are elaborating on their plans in dueling economic speeches this week. In Savannah, GA September 24, Former President Trump highlighted the importance of buying America goods, largely restating previously announced proposals including a 15% "Made in America" tax rate. The Former President said he wants companies "to be filled with regret and come sprinting back to our shores," and promised manufacturers, "I will give you the lowest taxes, the lowest energy costs, the lowest regulatory burden, and free access to the best and biggest market on the planet, but only if you make your product here in America." He previously announced the preferential corporate tax rate, drawing comparisons to the IRC Section 199 domestic production activities deduction repealed under the TCJA. His comments yesterday fit with a broader GOP plan to cast tax cuts and regulatory reform as complementary.

The Former President was sharply critical of Democratic presidential candidate Vice President Kamala Harris' tax plans, including on capital gains and the Billionaire's Tax on unrealized gains. He criticized "how Kamala treats the American manufacturers: They can all leave — whatever is left of them and there's not that much, they've gotten rid of so much — but if instead you ship production overseas, then she will give you a tax break. So, if you build your product, make your product overseas, she's offering a tax break to make it overseas." He promised expanded R&D tax credits and 100% bonus depreciation/expensing.

VP Harris is set to deliver a speech in Pittsburgh today and release an 80-page economic document that is said to rival Project 2025. The New York Times reported on the speech as "reframing her policy vision and a lengthy new document describing her approach in more detail," saying the actions "are part of an effort by Ms. Harris's campaign to weave together various economic proposals into a broader, thematic message."

Meanwhile, Republican efforts to push Nebraska to change its process of awarding electoral votes in the presidential contest by congressional district rather than winner-take-all like most states, which could be pivotal under certain scenarios, has run aground with opposition in the state Senate. U.S. Senator Deb Fischer (R-NE) was cited by press outlets as saying Monday the effort ended due to lack of votes. "It's over."

Congressional elections — A September 22 Washington Post story said Democrats — faced with tough polling for Senator Jon Tester (D-MT) in Montana, which with a 51-49 Senate majority now and expected GOP win in West Virginia could hand control of the Senate to Republicans — are looking at some Republican seats previously viewed as unlikely to be competitive. "Remarkably, Senate GOP incumbents in Florida, Texas and Nebraska have only tiny leads in recent polls (e.g., two percentage points in deep-red Nebraska), a shocking result in states that have voted strongly Republican in recent years," the story said.

Tax — The Senate September 23 confirmed by a 69-17 vote the nomination of Rose Jenkins to be a U.S. Tax Court. This was the third Tax Court nomination approved by the Senate, with the other two approved in July. Another three nominations were approved by the Finance Committee in July and await floor votes.

Today, September 25 (3 p.m.) is a Senate Finance Fiscal Responsibility and Economic Growth Subcommittee hearing, "Providing Small Business Relief from Remote Sales Tax Collection."

Subcommittee Chair Maggie Hassan (D-NH) in 2018 co-sponsored the Online Sales Simplicity and Small Business Relief Act to, in the wake of the Supreme Court ruling in South Dakota v. Wayfair, Inc. that allowed states to collect sales tax from out-of-state businesses, ban retroactive taxation and create an exemption for small businesses that see less than $10 million a year in total sales. Politico Morning Tax today: "Hassan is releasing a discussion draft today that aims to offer new protections for smaller retailers trying to cope with the Wayfair decision" but "it's an open question whether Hassan can help spur broader interest in the online sales tax issue, particularly heading into a year with a significant amount of pressing tax issues."

Ranking Member Chuck Grassley (R-IA), a former full Committee chairman, has also been active on the issue in the past.

Also today, September 25 (10:30 a.m.) is a Hamilton Project at the Brookings Institution and the Tax Law Center at NYU Law Webinar, "Taking on tax: Modernizing partnership taxation," featuring a fireside chat with Senate Finance Committee Chairman Ron Wyden (D-OR).

Deficit/debt - An op-ed in the September 24 Wall Street Journal, "A U.S. National Debt Crisis Is Coming," said: "Over the past half-century, interest payments on the federal debt averaged 2.1% of GDP, compared with 3.1% this year. If current trends continue, the annual interest payment will reach $1.7 trillion — 4.1% of GDP — by 2034. The CBO is required to base its estimates on current law, which includes a planned termination of many of the 2017 tax cuts next year. Extending those tax cuts would make the deficit and debt projections even worse. The budget office projects that defense spending, which has averaged 4.2% of GDP over the past 50 years, will shrink to 2.8% by 2034. The growing burden of interest payments, including to foreign creditors, makes it harder to afford the national security we need."

Publications — Recent WCEY and EY publications include:

• WCEY Alert, "2024 elections and TCJA tax cliff: Analyzing 3 major scenarios"
• EY publication, "Key tax issues business leaders are watching as 2025 nears"
• A broader discussion of policy issues US business leaders are focused on, "Public policy spotlight: 6 key issues for 2024 US elections"