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Tag Archive for US Senate Committee On Finance

U.S. Senate Committee On Finance: Two Opposing Views On Biden Administration Tax Hikes

U.S. Senate Committee On Finance On Tax Hikes

JCT: Democrats’ Proposals Increase Taxes on Millions of Americans

Millions of Americans making less than $400,000 per year would see tax hike.

Washington, D.C.–The nonpartisan Joint Committee on Taxation (JCT) estimates the Democrats’ latest reckless tax-and-spend proposal will increase taxes on millions of Americans across every income bracket, with more than half of the tax increases on Americans making less than $400,000 per year.

“While Republicans’ pro-growth tax reform in 2017 reduced tax rates for all Americans in a way that increased the progressivity of the tax code and produced historic gains in job and wage growth, the Democrats’ approach to tax reform means increasing taxes on low and middle-income Americans to fund their partisan Green New Deal,” said U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho), who requested the analysis.  “Americans are already experiencing the consequences of Democrats’ reckless economic policies.  The mislabeled ‘Inflation Reduction Act’ will do nothing to bring the economy out of stagnation and recession, but it will raise billions of dollars in taxes on Americans making less than $400,000.”

According to JCT:

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Treasury’s Attempt To Force Global Tax Agreement

US SENATE COMMITTEE ON FINANCE 1

Washington, D.C.–U.S. Senator Mike Crapo (R-Idaho), Ranking Member of the Senate Finance Committee, Congressman Kevin Brady (R-Texas), U.S. House Ways and Means Republican Leader, and U.S. Senator Jim Risch (R-Idaho), Ranking Member of the Senate Foreign Relations Committee, issued the following statement regarding the U.S. Treasury Department’s announcement that it intends to withdraw from the U.S.-Hungary tax treaty in an attempt to compel Hungary to implement the global minimum tax deal being pursued by the Biden Administration. The Senate Finance Committee and House Ways and Means Committee have jurisdiction over tax matters, and the Senate Foreign Relations Committee has jurisdiction over treaties.

“Treasury’s latest tactic to force implementation of the OECD agreement is to withdraw from a longstanding bilateral tax treaty approved by Congress. This is a transparent attempt to bully Hungary into hasty action on a global minimum tax and interfere in an internal European Union policy-making process. The move stands in stark contrast to the Biden Administration’s rhetoric about improving multilateral tax cooperation. We are very concerned that Treasury’s go-it-alone approach to the global tax negotiations will lead to more uncertainty, more disputes among countries, and fewer jobs and opportunities for Americans.

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EARN Act Strengthens Retirement Savings With 28-0 Vote

EARN Act Strengthens Retirement Savings With 28-0 Vote

EARN Act will help Americans save more and save longer.

Washington, D.C.–The U.S. Senate Finance Committee, under the leadership of Ranking Member Mike Crapo (R-Idaho) and Chairman Ron Wyden (D-Oregon), passed the Enhancing Americans Retirement Now (EARN) Act, expanding opportunities for Americans to increase their retirement savings and improving workers’ long-term financial well-being.  The legislation builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and is based in part on the Retirement Security and Savings Act of 2021, legislation championed by Senators Rob Portman (R-Ohio) and Ben Cardin (D-Maryland).  The bill was approved unanimously by the Committee, 28-0.

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Update On Criminal Breach of Taxpayer Data

US Senate Committee On Finance

(Article from Newsroom of the U.S. Senate Committee On Finance)

Almost a year later, the Biden Administration has not sought out stolen taxpayer information

Washington, D.C.–Nearly 10 months later, the Biden Administration still does not know what taxpayer data was stolen and leaked to ProPublica last summer.  In a letter to Treasury Secretary Janet Yellen, top Republicans on the Senate and House tax panels are requesting an update on the investigation.

The letter, sent by Ranking Member of the Senate Finance Committee Senator Mike Crapo (R-Idaho) and House Ways and Means Ranking Member Representative Kevin Brady (R-Texas) notes how investigators still have not sought a copy of the stolen information, writing:

Anyone accessing or releasing confidential personal tax information from the IRS without necessary approvals faces severe penalties and must be prosecuted.  In June 8, 2021, testimony before the Senate Finance Committee, IRS Commissioner Rettig pledged to ‘absolutely’ ensure that anyone found to have revealed such information would face prosecution, ‘absolutely.’  

“It is unclear why the Department of Treasury, the IRS, and the Department of Justice do not ask ProPublica for a copy of whatever data ProPublica is using to produce political articles in order to determine whether ProPublica’s claim of possessing legally protected data is true.” 

Read the full letter here.

KEY TAKEAWAYS: 

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U.S. Senate Committee On Finance: Senator Wyden Continues Investigation Into Big Pharma Tax Practices

https://www.finance.senate.gov/chairmans-news/senator-wyden-continues-investigation-into-big-pharma-tax-practices

Following letters to AbbVie and Bristol Myers Squibb, Wyden requests information from Merck, which reports just 14 percent of pretax income in the United States despite U.S. market being home to 46 percent of global sales

Washington, D.C. – Senate Finance Committee Chair Ron Wyden, D-Ore., today continued his investigation into Big Pharma’s tax practices, and how loopholes in the tax code have allowed large multinational corporations headquartered in the U.S. to further abuse tax havens and avoid paying U.S. taxes on prescription drug sales. While U.S. sales account for 46 percent of Merck’s global sales, Merck reported just 14 percent of pretax income in the United States.

In a letter to Merck, Wyden wrote, “As you are aware, in addition to being Merck’s legal domicile and the primary location for Merck’s research and development activities, the United States is the market for nearly half of Merck’s total global sales. Although the United States accounted for $22.4 billion of Merck’s sales in 2021, Merck reported just $1.85 billion in pre-tax income in the United States. In contrast, in the same year Merck reported international pre-tax income of more than $12 billion on approximately $27 billion in sales. This substantial discrepancy between Merck’s domestic and international pre-tax income appears to be the result of Merck’s use of subsidiaries in several well-known low-or-zero tax jurisdictions, which yielded a ‘favorable impact on [Merck’s] effective tax rate compared with the U.S. statutory rate of 21%.’” 

Full text of the letter follows:

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CBO: Inflation Jeopardizes U.S. Fiscal Position

CBO: Inflation Jeopardizes U.S. Fiscal Position

In report to Finance Committee, CBO outlines inflation’s harmful impact on U.S. budget

Washington, D.C.–The Congressional Budget Office (CBO) responded to a request from Republican Members of the Senate Finance Committee for information about budgetary effects of the high and rising inflation that continues to hammer American households.  According to the CBO, inflation and accompanying higher interest rates stemming from inflation further erode the fiscal position of the United States, including adding to the outsized and climbing $30.1 trillion national debt.

“The stealth tax imposed by inflation is hurting all Americans in the grocery aisles, at the gas pump, and in every bill they pay,” said Finance Committee Ranking Member Mike Crapo (R-Idaho).  “While inflation threatens Americans’ pocketbooks today, it also contributes to skyrocketing federal debt that will burden future generations.”

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Spotlighting IRS Customer Service Challenges

Spotlighting IRS Customer Service Challenges

The United States Senate Committee on Finance held a hearing on February 17, 2022 tax professionals and taxpayers should pay attention to right now. During this hearing they were “Spotlighting IRS Customer Service Challenges”. You can watch the hearing at this link. However, it is recommended you start by viewing the statements of the following individuals:

Senate Member Statements:

Mike Crapo Statement (R-ID)

Ron Wyden Statement (D-OR)

Witness Statements:

Erin Collins, National Taxpayer Advocate, IRS Testimony

Jessica Lucas-Judy, Director, Strategic Issues, US Gov Accountability

Jan Lewis, Chair, Tax Executive Committee, AICPA

You will find it very valuable reading these statements to understand what is going on behind the scenes, yet right out in the open during this hearing and testimony. Being informed is the best lesson.