A little less conversation, a little more action.
Democrats continue negotiations on the Infrastructure Investment and Jobs Act and the Build Back Better Act, hoping to reach a deal this week before President Biden heads to Europe for a visit with Pope Francis Oct. 29 and the G20 Summit this weekend. Additionally, highway funding expires Oct. 31. Recent conversations have centered around what tax increases are acceptable to pay for the new spending. Sen. Kyrsten Sinema (D-Ariz.) stated she would not accept any rate increases.
Enter a long-discussed and complicated tax on billionaires, often referred to as “mark-to-market.”
This new tax would apply solely to people with at least $1 billion in assets or $100 million in income for three straight years—about 700 people. On tradeable items such as stocks, billionaires still would pay a tax even if they held on to the asset. They would be taxed on any increases in value and take deductions on losses. Under current law, those assets get taxed only when they are sold. Read more about this proposal’s complications.
Good news for privacy
NRCA has been actively advocating against proposals to provide the IRS with sensitive banking information. The association joined this letter and activated its grassroots network to ask members of Congress for their opposition. It appears NRCA is gaining ground as Sen. Joe Manchin (D-W.Va.) recently called the proposals “screwed up” and said: “I think that one's going to be gone.” It also was reported Manchin would oppose the bank reporting proposal at any threshold, stating: “No one should be in anyone’s bank account.”
Did somebody say bellwether?
All eyes are on the Nov. 2 Virginia gubernatorial election. Former Democratic Gov. Terry McAuliffe and Republican Glenn Youngkin are polling neck and neck in the gubernatorial race. A state President Biden won by 10 points in 2020 and Hillary Clinton won by five points in 2016 should not be this close. The results of this race could act as a preview of the political landscape ahead of the 2022 midterms.
