The US federal government shutdown has entered its third week, having begun after midnight on 1 October. President Trump and Republicans remain adamant on their demands for a "clean" continuing resolution (CR) to fund the government, while congressional Democrats continue to insist that extension of enhanced Affordable Care Act (ACA) premium tax credits be included in the CR. The Republican-sponsored CR would patch funding until 21 November.

Nonetheless, Senate Majority Leader John Thune (R-SD) this week offered Democrats a vote on an extension of the enhanced ACA premium credits within a specific timeframe, but only after they provide the necessary votes for a CR to extend government funding and end the shutdown. Senate Democratic leader Chuck Schumer (D-NY) told reporters he was unaware of the latest Republican offer.

Republicans are also reportedly crafting various health care options for eventual negotiations with their Democratic counterparts — perhaps in a potential bipartisan year-end bill that would contain some of their own priorities.

G-20 Finance Ministers and Central Bank Governors held a fourth meeting of the South African Presidency in Washington on 15-16 October, which among other things addressed the BEPS 2.0 project. The Chair's Summary of the G-20 meeting addressed Pillar Two global minimum taxes, saying the shared goal is to find a "balanced and practical solution that is acceptable to all as soon as possible." The statement pointed to the need for "fair treatment of substance-based tax incentives" and the need to address the risk of base erosion and profit shifting.

The OECD on 15 October released the OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors. The report discussed recent developments in international tax cooperation, OECD action on G20 priorities such as implementation of the BEPS minimum standards, the BEPS Two-Pillar solution and tax transparency. The report also includes an Inclusive Framework assessment on BEPS implementation since 2015 and its economic impact over the past 10 years. An EY Global Tax Alert is forthcoming.