Stop gap funding bill vote today? House Democratic leaders still are trying to assemble a continuing resolution in time for a vote as early as today. The stopgap funding bill would keep the government open into at least mid-January. But most Republicans, who instead want bipartisan agreement on specific agency funding levels, may oppose a CR. The problem for Democrats: any CR that funds the government at current levels loses domestic spending increases proposed by President Biden. If the Senate doesn’t get a House bill by tomorrow, Republicans could stall for days and force a shutdown.
Still shaking over SALT. Democrats continue to battle among themselves over how to address the state and local tax (SALT) deduction. Senators Bob Menendez and Bernie Sanders agree that the cap should be limited to those making more than some amount. But they can’t agree on how much: Menendez wants to protect singles making about $550,000 or less and married couples making about $1.1 million. Sanders wants relief to be reserved for those making less than $400,000.
Debt limit discussions continue. Former Treasury Secretary Steven Mnuchin met with Senate Minority Leader Mitch McConnell yesterday to discuss, among other issues, the debt limit. Senate Majority Leader Chuck Schumer expressed optimism that the Senate could agree soon on a way to raise the borrowing cap.
PriceWaterhouseCoopers employees in Germany investigated for tax evasion. German authorities are investigating an alleged scheme that some current and past PWC employees used between 2012 and 2017. The allegation: They inaccurately claimed income from tax advice they gave to German clients as proceeds of a Swiss partner company. The alleged scheme allowed the suspects to evade $12.4 million in taxes over five years, prosecutors assert. PWC says it is cooperating fully with the investigation.
Microsoft CEO sold half his shares in the company last week. The Wall Street Journal reports the sale that yielded over $285 million for CEO Satya Nadella, might have been tax motivated. Next year, a new 7 percent Washington State tax on long-term capital gains that exceed $250,000 takes effect. He may also have his eye on the US House proposal to impose a surtax on income in excess of $10 million annually.
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