Prism Group's Daily Summary
TOO MUCH SALT FOR SPEAKER JOHNSON... Recent reports suggest that newly-elected House Speaker Mike Johnson (R-LA) may be on board with changes to the existing cap on State and Local Tax (SALT) deductions, a top priority for lawmakers from high-tax states on both sides of the aisle. While the 2017 Tax Cuts and Jobs Act limited these deductions to $10,000 for individuals and businesses organized as pass-throughs – such as partnerships and S corporations – several states have passed laws in recent years allowing these companies to circumvent the cap and write off their SALT expenses in full. Closing these workarounds would likely result in several billions of dollars in federal tax revenue and could be a key component of a year-end tax package, should one materialize.
SEVENTEEN DAYS TO PASS A CR... While Congress adjusts to a new speaker, the Israel Palestine Conflict, and Ukraine, the clock continues to tick on remaining time to pass a CR and avert a shutdown this year. With so much to tackle in both chambers, time will tell if an agreement can be made and a resolution can be passed.
ECONOMIC REPORTS SHOW ACCELERATED GROWTH IN Q3... The U.S. economy was revealed to have skyrocketed in Q3, with GDP growing at a 4.9 percent annualized rate, defying expectations of a slowdown due to the Federal Reserve's interest rate increases. A strong job market and declining inflation are likely to have boosted consumer confidence, leading to increased spending on goods and services.
THE STATE OF THE STATES
SESSIONS BY THE NUMBERS:
Six state legislatures are in session. Texas and Illinois are in special session.
WHAT WE'RE WATCHING:
The Tax Foundation recently released an analysis ranking New Jersey and New York as having the worst business tax climates in the United States. Both states are witnessing outflows of adjusted gross income to lower-tax states, prompting calls for tax reforms to improve their rankings. Meanwhile, states like Arizona that simplified their tax systems moved up in the rankings.
It has been three weeks since Louisiana Attorney General Jeff Landry (R) won the Louisiana governor’s race. With more state elections to come, the Louisiana Association of Business and Industry is urging Governor-elect Landry and state lawmakers to pass tax cuts and pro-business legislation to bolster the economy. For example, the LABI supports eliminating corporate franchise and business inventory taxes. Other issues the LABI has deemed important are workforce attraction, early-childhood education, and crime reduction.
LAWMAKERS... IN OR OUT?
The House... is out of session today. The full schedule may be found here.
The Senate... convenes today at 10:00 AM ET. The full schedule may be found here.
HAPPENING ON THE HILL
Committee on Financial Services will hold a hearing Thursday, 11/2 at 2:00 PM entitled “The Factors Influencing the High Cost of Insurance for Consumers”.
Committee on Financial Services will hold a hearing Thursday, 11/2 at 10:00 AM entitled “Examining the SEC’s Agenda: Unintended Consequences for U.S. Capital Markets and Investors”.
Committee on Small Business will hold a hearing TOMORROW, 11/1 at 2:30 PM on “The Great Outdoors: Small Businesses and America’s Outdoor Recreation Economy”.
Committee on Health, Education, Labor, and Pensions will hold a hearing TODAY, 10/31 at 10:00 AM on “AI and the Future of Work: Moving Forward Together.”
Committee on Appropriations will hold a hearing TODAY, 10/31 at 9:30 AM on “A Review of the National Security Supplemental Request.”
Committee on Banking, Housing, and Urban Affairs will hold a hearing Thursday, 11/02 at 10:00 AM titled “Ensuring Financial Protection for Servicemembers, Veterans, and their Families.”
Committee on Finance will hold a hearing Thursday, 11/02 at 10:00 AM titled “Hearing to Consider the Nomination of the Honorable Martin O'Malley, of Maryland, to be Commissioner of Social Security for the remainder of the term expiring January 19, 2025, vice Andrew M. Saul. BILLS OF INTEREST
Rep. Glenn Thompson (R-PA-15) introduced a bill to direct the Secretary of Education to establish a pilot program to award competitive grants for the integration of cybersecurity education
Rep. Zachary Nunn (R-IA-3) introduced a bill to require the Secretary of Health and Human Services and the Secretary of Labor to conduct a study and issue a report on grant programs to support the nursing workforce.
Sen. Alex Padilla (D-CA) introduced a bill to help persons in the United States experiencing homelessness and significant behavioral health issues, including substance use disorder, by authorizing a grant program within the Department of Health and Human Services.
AT THE AGENCIES The US Department of Labor The US Department of Labor issued a statement by Acting Secretary Su on the third tentative agreement between the United Auto Workers and major US auto companies.
The US Department of the Treasury
The US Department of the Treasury issued remarks by Deputy Secretary of the Treasury Wally Adeyemo at the Industry 2023 Conference in Berlin, Germany
The US Department of Commerce
The US Department of Commerce announced that it will undertake key responsibilities in the historic artificial intelligence Executive Order.
The US Trade Representative
The Office of the US Trade Representative announced the successful resolution of a Rapid Response Mechanism labor matter at a Mexican airline.
The US Small Business Administration
Check back tomorrow for possible updates.
Was this email forwarded to you? Curious for more information?
Subscribe to EIW Today to receive the morning newsletter directly in your own inbox!