Free Trial

USD$78B Bipartisan Tax Deal On Brink Of Collapse

US

The USD$78 billion bipartisan and bicameral tax bill negotiated by Senate Finance Committee Chair Ron Wyden (D-OR) and House Way and Means Chair Jason Smith (R-MO) appears on the brink of collapse.

  • Punchbowl News reports that Senator Mike Crapo (R-ID), “told GOP colleagues privately [at a GOP policy lunch] on Wednesday that he doesn’t want to pass a tax bill this year," adding, "Crapo made a 'chopping' motion with his hand while declaring he wouldn’t do a deal with Democrats on taxes this year.”
  • Crapo’s position, which is backed by Senate Minority Leader Mitch McConnell (R-KY) and moderate Senator Mitt Romney (R-UT) means that Majority Leader Chuck Schumer (D-NY) is unlikely to find sufficient Republican support to discharge the bill from committee.
  • Also working against the bill: A two-week recess scheduled to begin on Friday will bring any movement on the bill close to the individual tax-filing deadline on April 15 - an informal cutoff date, after which tax legislation is likely to be punted until next year.
  • Senate Republicans are likely gambling on taking control of the Senate – and committee leadership – in January. With control of the committee, Senate Republicans envisage far more leverage in crafting tax legislation without including Democrat priorities.
  • Reporter Andrew Desiderio notes that Schumer put the bill on the Senate’s calendar yesterday under Rule 14, but cautioned: "This is simply a procedural step & isn’t an indication that Schumer will eventually put the bill on the floor. But notable nonetheless."

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.