Year End Budget Proposal and The Tax Extenders
The House of Representatives has passed a budget proposal offered by both Paul Ryan (R – Wis.) and Patty Murray (D – Wash). The deal is worth about $85 billion, $45 billion of which replaces the sequestration cuts in 2014, and another $20 billion for deficit reduction. The remaining $20 billion preemptively replaces sequestration cuts in 2015. The Senate will very likely pass the budget deal this week. Unfortunately, the tax extenders in general, and WOTC in particular do not figure into this deal at all.
Earlier, Ways & Means Committee Chairman Dave Camp announced that he will delay the consideration of a bill that would comprehensively reform corporate taxation until early 2014. The Ryan/Murray bill does not undermine the possibility that Congress could pass a tax extenders bill in February 2014 with the debt ceiling increase or at some other point. And to that end, Senate Finance Committee Chairman Max Baucus (D-Mont.) said he plans to address tax extenders “as soon as we can” in 2014. Members of Senate Finance are said to be pressuring Mr. Baucus to review legislation that would seek to extend all the tax extenders – including WOTC – that are currently set to expire on Jan 1 2014. Said Mr. Baucus “We’re doing our best, because they’re very important.”