As the November elections draw near, what chance is there to get anything done when the main issues are winning re-elections and maintaining political power?
The Real Estate Roundtable notes, there are still a few significant “musts,” for Congress.
According to Politico, the National Defense Authorization Act and an omnibus budget bill must be passed by December 16 in that order.
The huge bill that funds the government is known as the omnibus spending bill. Without its passage, certain departments of the government will be unable to operate and will consequently experience a partial (in this case) shutdown. The NDAA is essential because it keeps the lights on at the Pentagon, the numerous military outposts, and the offices of the defense industry.
Several tax proposals are included in the list of things Politico says is likely, “(but no promises)”. Democrats want to bring back the CTC boost for children. Republicans want to reinstate a tax break that gives companies the ability to deduct their research costs right away. Those are just two of the many tax cuts that might be available during the session, along with additional incentives for retirement savings.
The Tax Policy Center notes that there are also a number of provisions from the 2017 Tax Cuts and Jobs Act that are still in effect, such as bonus depreciation for businesses and stiffer restrictions on the deduction of interest expenditures.
The Real Estate Roundtable claims that another tax-related issue is also up for debate. This is significant for the multifamily sector since “Other expired tax provisions include a temporary increase in how low-income housing tax credits (LIHTCs) are allocated to states.
Because politicians don’t bother to pay for them, tax extenders “often move without much opposition,” TPC concluded. But a grand deal with the company tax reforms connected to the CTC and TCJA won’t be cheap. The cost of the CTC in 2021 is estimated by congressional scorekeepers to be about $1.6 trillion over a ten-year period, and the business investment tax breaks will result in a $400 billion decrease in federal revenue. There is still no official estimate for lowering the cap on net interest deductions at this time.
What’s interesting to think about is where does the funding for these prolonged tax breaks come from?
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