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From the Hill: February 28, 2023

The Hill has been quiet as Congress was out for a two-week recess, but activity resumed as they returned for a few days. Here’s what’s been happening.
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Lately on the Hill

It’s been quiet on the Hill lately since Congress has been out of office for a two-week recess, but they’re back in session this week for a few days. Here is a roundup of the latest legislative and regulatory news on the tax front: 

  • We’re still talking about Social Security. We’ve been hearing about the Social Security and Medicare trust funds a lot lately. The latest news is that Sen. Bernie Sanders (I-VT) is starting to pitch his idea on how to save Social Security: fully fund the Social Security trust fund for at least 70 more years, including increasing benefits, by expanding payroll taxes on the wealthy, rather than the current threshold of the first $160,200 of income. 
  • Tax takes flight. Congress is getting ready to start working on legislation that reauthorizes federal aviation programs and related excise taxes to fund the Federal Aviation Administration (FAA) that expire September 30. Since the bill includes tax provisions, there is talk that Congress may try to include other tax policies in the legislation beyond those related to the FAA, including tax extenders like repealing changes to R&D expensing under the Tax Cuts and Jobs Act. This bill is in its early stages, but we’ll keep you posted on where this goes. 
  • LIFO legislation is back for round two. Senator Sherrod Brown re-introduced the Supply Chain Disruptions Act, which proposes to provide tax relief to auto dealers facing supply chain challenges and inventory shortages by providing dealerships with up to three years to replace their inventory before having to pay taxes on inventory sales from 2020 or 2021. A companion bill has been re-introduced in the House as well. The Senate passed the Supply Chain Disruptions Act in the last session, but it did not pass in the House before the close of session
  • Should ESG play a role in your retirement investments? Reps. Suzan DelBene (D-WA), Sean Casten (D-IL), Juan Vargas (D-CA), and Dean Phillips (D-MN) introduced the Freedom to Invest in a Sustainable Future Act, which would give workplace retirement plans the option to consider environmental, social, and governance (ESG) factors in their investment decisions or offer ESG investment options. Meanwhile, House and Senate Republicans are planning a floor vote this week to block the U.S. Labor Department from enforcing its new rule that permits retirement plans to consider any and all relevant factors, including ESG. Senate Republicans said they think they can get enough votes to pass the resolution, which means this may be President Biden’s first chance to issue a veto. 
  • Republicans want to stop government-backed digital currency. Representative Tom Emmer (R-MN) introduced the CBDC Anti-Surveillance State Act, which proposes to limit the Federal Reserve’s ability to develop a central bank digital currency. Republicans are concerned that a government-backed digital dollar would violate Americans’ privacy by giving the Federal Reserve too much access to people’s spending habits. 


This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein. 

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