Jan 9, 2018

Tax Policy Update


Both the House and Senate are back this week, and it’s déjà vu. The continuing resolution is set to expire Jan. 19 — lawmakers must come to an agreement on funding for the remainder of fiscal year 2018 to avoid a government shutdown. Sound familiar?

Congressional leaders are working out an agreement to raise the budget caps and put together a long-term spending bill (so-called “omnibus”) to keep the government running through Sept. 30. Spending numbers are at the heart of the fight between Republicans and Democrats. Republicans want to increase funding for the military, but that will require Congress to bump up the statutory caps on discretionary spending. Increasing the caps will require Democratic support. Democrats are willing to play ball so long as they get a commensurate increase for domestic spending. Negotiating for parity between defense and domestic spending reached an impasse in December.

Even though congressional leaders made some progress in their negotiations at the White House last week, another stopgap measure will likely be necessary to give appropriators more time to crunch the numbers and finalize a deal. Lawmakers must also decide whether to attach other policy riders to the omnibus, namely disaster assistance, debt limit increase, and a fix for DACA. If talks between Republican and Democratic leaders take a more productive turn, an omnibus spending bill may be unveiled in February, if not sooner.

Quick Promo: McGuireWoods has launched a new blog titled, “Take Stock: Tax & Employee Benefits Today,” which focuses on legislative and regulatory issues impacting executive compensation, employee benefits, corporate tax, and estate planning. The Tax Policy Update team will be contributing regularly to the blog, sharing our insights and special write-ups from the world of federal tax policy.

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The McGuireWoods’ Tax & Financial Services Policy Group assists clients in understanding how the latest legislative and regulatory proposals and decisions may impact their business and industry. To learn more about how our team can help you monitor, analyze, and navigate all relevant legislative and regulatory developments, please contact any of our attorneys and consultants below at (202) 857-1700. For more information on how to subscribe to our weekly Tax Policy Update and tax news alerts, please contact Radha Mohan, , (202) 857-2944.

Russell Sullivan

Rosemary Becchi

Harold Hancock

Charlie Iovino
Vice President

Assistant Vice President 

Radha Mohan
Assistant Vice President 

Anne C. Starke
Research Associate

Daniel Chung