Tax Update (April 1)
|W&M Hearing Overview
House Ways and Means Chairman Richard Neal (D-MA) held a hearing on Wednesday (Mar. 27) to discuss the impact of the Tax Cuts and Jobs Acts (TCJA), with the legislation continuing to divide Republicans and Democrats on the committee.To read the opening statements from members and the witnesses, click here.
Senators Tim Scott (R-SC) and Cory Booker (D-NJ), the original sponsors of Opportunity Zone legislation before it was packaged in the TCJA, are discussing better options in terms of monitoring the legislation, according to Bloomberg Tax’s Lydia O’Neal.
The original legislation would have required the Treasury Department to report annually on a variety of Opportunity Zone metrics, including the number of jobs created because of the program. The reporting requirements were excluded from the final law because of the Byrd Rule, which prohibits such policy measures. Scott and Booker will introduce legislation in the hopes to reintroduce the requirements.
House Democratic tax writers clashed during a closed-door meeting Tuesday over what to do with leftover tax extenders. Several Ways and Means Committee members are unenthusiastic about the prospect of moving — as their first tax bill since taking control of the House — legislation reviving the provisions because that would mostly benefit businesses. Ultimately, Ways and Means Democrats will mark up a retirement savings bill and potentially Internal Revenue Service (IRS) Reform legislation.