The Senate on Monday voted 84 to 15 to confirm former Federal Reserve Chair Janet Yellen to be the next Treasury Secretary. Thirty-four Republicans and all 50 Democrats supported her confirmation. Senator Marco Rubio (R-Fla.) did not vote.
Yellen made it clear that tax increases are currently not a top priority for the Biden administration. However, as the pandemic comes under control and the economy improves, the subject of tax increases will likely be raised more frequently by lawmakers on Capitol Hill.
Still, advancing legislation through Congress that includes tax increases will be difficult. The partisan split in the Senate is evenly divided. This means that, barring the use of a budgetary measure, it will take 60 votes to pass a bill out of the Senate that increases taxes. This would require at least ten Republican Senators to join all Senate Democrats in support of such legislation, which is highly unlikely. Also, certain Senate Democrats, like Joe Manchin (W.Va.) and Jon Tester (Mont.), may not support legislation that increases taxes.
In developments regarding tax legislation, House Representatives Susan DelBene (D-Wash.) and Rosa DeLauro (D-Conn.) are expected to introduce the American Family Act that seeks to advance President Biden’s agenda on expanding the Child Tax Credit.
This same bill was introduced in 2019 and went nowhere in the prior Congress. At the time, the tax-writing committees in both chambers never took up the measure. It was also never subject of a floor vote in either chamber.
President Biden’s support for the bill could improve its chances for passage in the House. However, in the Senate, as stated above (barring the use of a budgetary measure), it will take ten Senate Republicans to support the measure for it to pass that chamber, which is unlikely if the 2019 bill is any indication on GOP support for it. No Republican in the Senate or House supported the bill that year.
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.