Tax Byte

While Tracy Chapman’s “Fast Car” may have found its way back to the top of the charts after 30 years, and rightfully so, there is zero related prophecy to the movement of that House-approved tax bill you love to hate or its need for a quickly moving legislative vehicle. “Maybe we can make a deal,” Chapman sings, “maybe together we can get somewhere.” Although it seems Congress is working to do just that with the largely bipartisan, bicameral tax deal that cleared the House on January 31, for now, the bill remains stalled in the Senate.

Although I told you earlier this month that the Tax Relief for American Families and Workers Act of 2024 (HR 7024) faced a bumpy road ahead after its overwhelming approval in the House, I really thought we’d have a clearer picture by now on the timing of this thing moving in the Senate. We do not.

There are a few things we do know, however. And I’ll make it quick:

• Certain Senate Republicans wants to see numerous changes to HR 7024 before pledging their support.
• Many tax pros are calling for Congress to remove the retroactivity of the bill’s Child Tax Credit and business tax break provisions to avoid amended-return chaos.
• Congress is scrambling to avoid a partial government shutdown as funding for federal agencies is set to expire collectively on March 1 and March 8.
• HR 7024 could hitch a ride untouched with one of these must-pass government spending bills, but the move would be risky without sufficient support.
• HR 7024 could be changed in a Senate Finance Committee (SFC) markup or by amendment once it reaches the Senate Floor, but any changes in the upper chamber means the bill must go back to the House.
• SFC ranking member Mike Crapo, R-Idaho, issued a February 28 statement on the status of congressional tax negotiations, noting the “no near-term path forward in the Senate.”
• Odds HR 7024 is enacted anytime soon ain’t looking great.
• MLB’s official Opening Day this year is March 28.