Government Shutdown Averted ?

[Lee B]

The Omnibus Spending Bill is 4,155 pages long. I'm sure our elected representatives will read every page before they vote

Preliminary reports don't mention any tax changes?

[Catherine]

45 minutes ago, cbslee said:

Preliminary reports don't mention any tax changes?

The preliminary report-ers just haven't gotten to that section yet. Or did not understand what they were speed-reading.

[Lee B]

Copied from Accounting Today:

 

"Chances are dimming that Congress will take up a multibillion-dollar package to renew a cluster of business tax breaks and provide a more generous child tax credit before lawmakers leave Washington for the year. 

Republicans want to extend three provisions of their massive 2017 tax cuts: a write-off for corporate-debt costs, a broad tax break for research expenses and a tax break that allows companies to deduct all their capital-expenditure costs in one year. Democrats are demanding that any deal restore a more generous child tax credit of as much as $3,600 that was part of President Joe Biden's 2021 pandemic stimulus plan and has since expired.

Some key lawmakers say negotiations on a bill that can get the 60 votes needed to clear a Senate split 50-50 are at a standstill."

[Lee B]

There are reports that SECURE 2.0 has been included in the Omnibus Bill: 

"Among the key provisions contained in the final bill include:   

The establishment of a new “Starter K,” supported by the ARA which will allow employers that do not currently sponsor a retirement plan to offer a starter 401(k) plan (or safe harbor 403(b) plan).  Research sponsored by the American Retirement Association indicates that it could expand coverage to over 19 million American workers;

A 100% tax credit for new plans;

An enhanced Saver’s match that will modify the existing Saver’s Credit with respect to IRA and retirement plan contributions by changing it from a credit paid in cash as part of a tax refund to a government matching contribution that must be deposited into a taxpayer’s IRA or retirement plan. Research sponsored by the American Retirement Association suggest that more than 108 million Americans would be eligible for this government match;

A new “pension-linked” emergency savings provision;

A new student-loan matching program to treat student loan payments as elective deferrals for purposes of matching contributions;

Higher catch-up limits at age 60, 61, 62 and 63 (beginning after Dec. 31, 2024);

Increasing the required minimum distribution (RMD) age;

Expansion of the current QLAC limits;   

Provisions for auto-portability;

Establishment of a Retirement Savings Lost and Found;

Expansion of the Employee Plans Compliance Resolution System (EPCRS); and

Reforms to the family attribution rules by removing attribution for spouses with separate and unrelated businesses who reside in community property states, and removes attribution between parents with separate and unrelated business who have minor children. "

 These are mostly provisions that will benefit the Upper Middle Class Baby Boomers.

[Randall]

Will these tax changes be effective for 2023?  Hopefully none to affect 2022. 

[Lee B]

As far as I can tell effective 2023.

[Lee B]

The Senate passed the Omnibus Spending Bill 68 to 29.

The House will vote tomorrow.