Daily Tax Update - March 14, 2013: Senate Budget Committee Begins Mark Up of FY 2014 Budget Resolution

SENATE BUDGET COMMITTEE BEGINS MARK UP OF FY 2014 BUDGET RESOLUTION:  Today, the Senate Budget Committee began their mark up of the Fiscal Year 2014 budget resolution (The Foundation for Growth: Restoring the Promise of American Opportunity).  The proposal would raise $975 billion in new revenue over the next 10 years through cutting unspecified tax expenditures for higher-income individuals and corporations.  In her opening remarks, Chairwoman Patty Murray said, “Our budget tackles this issue the way the American people have consistently said they want it done, with an equal mix of responsible spending cuts made across the federal budget, and new revenue raised by closing loopholes and cutting wasteful breaks that primarily benefit the rich. . . . This budget cuts spending responsibly by $975 billion, and we make some tough choices to get there.”  Murray added, “If this budget passes, the total deficit reduction since the Simpson-Bowles report will consist of 64% spending cuts, 14% tax rate increases on the rich, and 22% new revenue by closing loopholes and cutting wasteful spending in the tax code for the wealthiest Americans and biggest corporations. . . . That is a responsible approach."

Murray added, "It’s a balanced and fair approach.  It’s the one endorsed by bipartisan groups and experts, and it’s the one supported by the vast majority of the American people.”  The plan includes reconciliation instructions, a fast-track process that “makes sure that the new revenue from the wealthiest Americans and biggest corporations cannot be filibustered in the Senate.”  Finance Chairman Max Baucus has said that he does not believe reconciliation is the way to accomplish tax reform.

  • A summary can be accessed here.

SELECT REVENUE MEASURES SUBCOMMITTEE TO HOLD HEARING ON FINANCIAL PRODUCTS TAX REFORM DISCUSSION DRAFT:  On March 20, the Select Revenue Measures Subcommittee will hold a hearing on the financial products tax reform discussion draft released on January 24, 2013.  In announcing the hearing, Subcommittee Chairman Tiberi said, “The Ways and Means Committee worked hard to produce a draft proposal that reforms the arcane and often inconsistent tax rules governing derivatives and other financial products.  This hearing will give the Subcommittee the opportunity to consider the potential impact on investors and other participants in the financial markets, and we welcome feedback from the public on how to refine and improve the draft proposal.”

WAYS AND MEANS TO HOLD HEARING ON TAX REFORM AFFECTING STATE AND LOCAL GOVERNMENTS:  On March 19, the House Ways and Means Committee will hold a hearing on Federal tax provisions that affect State and local governments.  In announcing this hearing, Chairman Dave Camp said, “As we continue to work toward comprehensive tax reform that significantly lowers rates and makes the code fairer and simpler so that we can spur a climate for job creation, higher wages and better benefits, we must better understand how various aspects of the tax code affect stakeholders.  To that end, it is important that the Committee hear directly from those who are familiar with the impact of Federal taxation on State and local governments before considering any proposals as part of comprehensive tax reform.”