Compromise will be key to ensure common sense tax provisions for small business this year.
The bipartisan tax deal faces significant hurdles in the Senate, as a number of Senate Finance Committee Republicans have publicly called for hearings and expressed skepticism in the bill’s current form.
The Finance Committee holdouts are concerned, firstly, that the bill was written behind closed doors and without their input, and secondly some appear concerned that any tax deal would be seen to be handing a legislative victory to President Biden in a fiercely competitive election year.
The overriding concern here is that while the bill passed out of the House overwhelmingly in its current form, any changes made by the Senate are likely to be a “poison pill,” dooming the whole deal, as the House would have to agree to the changes - which it is almost certainly unwilling to do.
Moreover, as the Senate currently wrangles with international aid and border negotiations, and with the bifurcated March 1st & 8th funding deadlines approaching, the momentum behind the bill may stall.
Follow NSBA as we continue tracking this tax legislation on Capitol Hill.