Congress returns to session this week with House tax-writers potentially weighing in on issues surrounding the OECD-led global tax agreement. The House Ways and Means Tax Subcommittee is holding a hearing on "Promoting Global Competitiveness for American Workers and Businesses" on Wednesday, December 3 at 9 a.m. The hearing advisory said it would focus on "the importance of pro-growth international tax policy to promote capital investment and to create more high-quality jobs in the United States."

Lawmakers have remained interested in progress on a side-by-side system that would exempt US multinationals from certain Pillar Two global minimum tax rules and have been concerned about digital services taxes (DSTs). Treasury briefed members on the status of the global effort before Thanksgiving.

For the latest on the international tax landscape, an EY Tax Alert, "G20 Leaders' Declaration reflects continued engagement to address Pillar Two concerns," is available here.

Schedule — Additionally in Congress, the House floor will be busy with members back in session today (December 1) and votes beginning at 6:30 p.m. on bills under the jurisdiction of the Small Business Committee, Judiciary Committee, Energy and Commerce Committee, Financial Services Committee, and the following Ways and Means Committee bills:

• H.R. 4313 — Hospital Inpatient Services Modernization Act, as amended (Sponsored by Rep. Buchanan / Ways and Means Committee)
• H.R. 5284 — Claiming Age Clarity Act (Sponsored by Rep. Smucker / Ways and Means Committee)
• H.R. 5345 — Improving Social Security's Service to Victims of Identity Theft Act (Sponsored by Rep. Kustoff / Ways and Means Committee)
• H.R. 5348 — Social Security Child Protection Act of 2025 (Sponsored by Rep. Smucker / Ways and Means Committee)
• H.R. 5346 — Fair and Accountable IRS Reviews Act (Sponsored by Rep. Grothman / Ways and Means Committee)
• H.R. 5349 — Tax Court Improvement Act (Sponsored by Rep. Moran / Ways and Means Committee)

The Senate is also back in session today (December 1) with a 5:30 p.m. vote on a judicial nomination.

Health care — There is no additional clarity on how members may agree to extend enhanced Affordable Care Act (ACA) premium tax credits (PTCs) expiring at the end of this month. For now, the dynamic resembles that which led the nation out of the government shutdown last month, with moderate senators searching for a deal and the role that the House and Trump Administration may play currently unclear.

A story in the November 28 Wall Street Journal focused on "centrist dealmaker" Senator Jeanne Shaheen (D-NH) said, "a core group of lawmakers — from both parties and both chambers of Congress — that includes Shaheen is in discussions about devising a short-term extension of expiring ACA subsidies, paired with changes to tighten eligibility sought by some Republicans, and hoping the package gets a shot on the floor." The story said the Republicans who Shaheen is in talks with include other noted dealmakers Senators Lisa Murkowski (R-AK) and Susan Collins (R-ME). Shaheen helped broker a continuing resolution (CR) to end the shutdown.

Regarding the enhanced ACA PTCs, President Trump told reporters aboard Air Force One on November 25, "Somebody said I want to extend them for two years. I don't want to extend them for two years. I'd rather not extend them at all. Some kind of an extension may be necessary to get something else done, because the Unaffordable Care Act has been a disaster."

Also prior to Thanksgiving, there had been reporting about the White House possibly releasing a proposal to extend the enhanced ACA PTCs for two years with new guardrails. Politico reported November 23 that the plan was expected to include "new income caps for enrollees to qualify for the ACA tax credits as well as minimum premium payments … The planned eligibility cap would limit the subsidies to individuals with income up to 700 percent of the federal poverty line — aligning with what a bipartisan group of senators have been discussing separately … "

Punchbowl said the plan, which reportedly drew a warning from Speaker Mike Johnson (R-LA) that House Republicans don't have an appetite for extending the enhanced credits, "mirrors what some GOP senators, most notably Sen. Katie Britt (R-Ala.), were privately pitching to Trump last week as a way to buy time for a larger health care fix and, simultaneously, prevent politically damaging premium hikes in the near-term." Another report said House Republicans are mulling a proposal focused on "expanding health savings accounts and allowing companies to pool insurance plans."

On Fox "Sunday Morning Futures" yesterday, Ways and Means Committee Chairman Jason Smith (R-MO) did not show much interest in extending the enhanced ACA credits. "If we're not able to allow a Covid-era program to expire and revert back to the original Obamacare, which the Democrats have championed from day one, to be able to balance our budget, to cut spending will be virtually impossible," he said. "We need to cut spending." By contrast, Senate Finance Committee Chairman Mike Crapo (R-ID) has said he is working toward a bipartisan agreement on health issues.

Democratic senators were supportive of word of the potential Administration plan while House Democratic leaders were not. "I'm glad the President is reportedly considering a serious proposal to begin negotiations to prevent health insurance premiums from soaring for tens of millions of Americans in a matter of weeks," Senator Shaheen said. "While I have significant concerns about some of the ideas reportedly in the President's proposal, it nonetheless represents a starting point for serious negotiations," said Senator Maggie Hassan (D-NH). Senator Jacky Rosen (D-NV) was also supportive.

However, Ways and Means Committee Ranking Member Richard Neal (D-MA), Energy and Commerce Committee Ranking Member Frank Pallone (D-NJ) and Education and Workforce Committee Ranking Member Bobby Scott (D-VA) released a joint statement critical of the reported plan, saying, "anything short of a clean extension is unworkable and won't avoid the price hikes people are now facing."

As part of the agreement ending the government shutdown, Senate Majority Leader John Thune (R-SD) has promised Democrats a vote on an enhanced ACA credits extension proposal no later than the second week of December. Politico reported this morning, "Though the ACA tax credits expire at month's end, some lawmakers are looking at Jan. 30, the next shutdown deadline, as the real cutoff for a health care deal."

With or without a bipartisan health bill, another option for Republicans is the budget reconciliation process. The chairmen of the House and Senate Budget committees have been among the most vocal proponents of another reconciliation bill to follow the "One Big Beautiful Bill Act." Following on similar previous comments, Senate Budget Chairman Lindsey Graham (R-SC) said in a November 25 Washington Post story headlined, "Some Republicans Want to Try to Pass Another Mega-bill on Health Care," that he's beginning work on a second package with health care policy and "a lot" of other Republican priorities. "I think the president wants it. We'd be crazy not to do it. It'd be political malpractice," Graham said.

His House counterpart, Budget Committee Chairman Jodey Arrington (R-TX), wants to explore bipartisan options first, saying several potential health care changes to reduce premiums could get bipartisan support, then there are proposals Republicans could move in a reconciliation bill. "I don't know why we would leave the tool of reconciliation in the toolbox if we have another opportunity to use it and we believe it will make the health care system more efficient," he said.

A November 25 Bloomberg Government report, "GOP Moves Toward Party-Line Health Bill After Trump Pulls Plan," said, "Many House conservatives oppose extending Covid-era subsidies under the ACA. Others see a path for an extension, but only if Republicans can tack changes on. Lawmakers expect the topic to be top of mind when members return from Thanksgiving recess next week. The chamber is scheduled to be in session just three more weeks this year."

Trade — In a November 29 post, President Trump lauded his trade approach, saying, "Tariffs have made our Country Rich, Strong, Powerful, and Safe. They have been successfully used by other Countries against us for Decades, but when it comes to Tariffs, and because of what I have set in place, WE HAVE ALL THE CARDS."

The topic of affordability, including how it is affected by tariffs, is shaping up to be a main narrative in the 2026 midterm elections, for both parties. Republicans are blaming the prior Democratic administration, while Democrats are citing the actions of the current president. Senator Amy Klobuchar (D-MN) said of Republicans on CNN's "State of the Union" yesterday, "If they don't want to do anything about people's costs and their grocery bills and their health care and pummel them with these punishing Trump tariffs, then we will simply have to beat them in the midterms."

Bill introductions — Legislation introduced in the House on November 28 included:

• H.R. 6318, to prohibit price gouging with respect to goods subject to a tariff, by Rep. Rosa DeLauro (D-CT)
• H.R. 6323, to penalize improper compliance with certain taxpayer requirements, by Rep. Jimmy Panetta (D-CA)
• H.R. 6324, to provide for in-service rollovers for individual retirement annuity purchases, by Rep. Panetta

A press release on H.R. 6324, the Retirement Simplification and Clarity Act, said it would streamline the complicated 402(f) notice process, referring to the document provided to individuals who leave an employer and request a distribution from their 401(k) plans. "The notice outlines distribution options and their tax implications," the release said. "Under the bill, the IRS would be directed to redesign this notice in clear, straightforward language."