The Senate will work this week on a bipartisan compromise on border security that will likely face insurmountable opposition from House Republicans and former President Donald Trump.
The bipartisan tax bill that overwhelmingly passed the House last week looks increasingly likely to become law, but Republican critics in the Senate are determined to at least delay the bill. The bill includes popular tax breaks for farmers and businesses of all sizes, as well as an expansion of the child tax credit.
A further spending package expected to include border security measures and aid to Israel and Ukraine is expected to be announced by the end of this week and is expected to be voted on by the Senate on Wednesday.
It remains unclear heading into the weekend whether supporters of the border security plan will be able to defeat opposition that has been building for weeks. One Senate negotiator last week implored his colleagues to take the time to read the text before voting no.
“There are a lot of smart people in this building who can read, so when the bill comes out, the senators are going to read it and make a decision based on its text,” Arizona State said independent Sen. Krysten Sinema. He is one of the bill's negotiators, speaking to reporters outside the Senate chamber. “Then everyone will have to decide: Do we want to protect our borders, or do we not want to protect our borders?”
House Speaker Mike Johnson (R-Louisiana) has been in regular contact with President Trump about the bill and has been fiercely opposed to what Trump expects to be included in the bill for weeks. In response to the Senate bill, he announced Saturday that the House would vote this week on an additional $17 billion spending bill focused solely on aid to Israel.
“The need to support our closest allies in the region and our military has never been more pressing,” he said in a letter to his Republican colleagues on Saturday.
In an interview on NBC's “Meet the Press Sunday,” Johnson claimed that Trump: “No decision-making power” in border security. “I make decisions for the House.”
However, the White House quickly expressed opposition to Johnson's plan. It “did nothing to secure the borders, did nothing to help the Ukrainian people protect themselves from Putin’s aggression, and did nothing to help the Palestinian civilians, whom the Israelis were supporting by opening access routes; Most deny humanitarian aid to women and children,” said White House press secretary Karine Jean-Pierre.
Meanwhile, House Ways and Means Committee Chairman Jason Smith (R-Missouri), who negotiated the tax bill directly with Senate Finance Committee Chairman Ron Wyden (D-Oregon), cited He continues to pressure his colleagues to support the bill. In danger. The bill includes the reinstatement of 100% bonus depreciation, as well as increases to the Section 179 expense allowance and current expense limits for corporate research and development.
Smith argued in a statement Friday that as many as 1 million jobs could be lost if the tax provisions are not enacted.
“Our tax relief package will help make a difference for the millions of small businesses that are trying to earn a paycheck while making things right here in America. The House has met its responsibility to protect workers. The Senate has We should pass this bill and get it to the president's desk as soon as possible,” Smith said.
Under current Section 179 regulations, companies can amortize equipment and software costs up to $1.16 million in 2023, but that limit is phased out once expenses exceed $2.9 million. Masu. The House-passed bill would raise the spending limit to $1.29 million and increase the phase-out threshold to $3.22 million, both of which would be indexed to inflation.
The bonus depreciation provision, which allows businesses to immediately write off the cost of equipment and buildings, will be phased out under the Tax Cuts and Jobs Act of 2017. The reserve will decrease from 100% to 80% of the purchase price in 2023, 60% this year, 40% in 2025, 20% in 2026, and is scheduled to end in 2027.
Senate Republicans have insisted on the opportunity to debate amendments to the bill, raising a number of concerns about the bill, including the possibility that expanding the child tax credit could aid President Joe Biden's re-election effort. Conservatives in the House and Senate have also argued that expanding the child tax credit would encourage parents to leave the workforce.
“We still have a ways to go,” Sen. Jerry Moran (R-Kansas) said of the bill.he said agripulse It would be “natural'' for Republicans to insist on the opportunity to amend the bill.
Sen. Chuck Grassley (R-Iowa) acknowledged last week that bonus depreciation and Section 179 are “significant issues” for farmers, but Congress is determined that key provisions of the 2017 TCJA will be amended. He said they should wait until the next Congress to do anything about them. Expired. These provisions include increased section 199A deductions for business income and inheritance tax exemptions.
Also this week, the Department of Agriculture is scheduled to release its first forecast of farm income for 2024 on Wednesday. In December, the USDA estimated 2023 net farm cash income at $157.9 billion, down 23.8% from 2022 after adjusting for inflation but still 15% above the previous year. 20 year average.
Also on Wednesday, the Federal Maritime Commission will hold a public hearing on shipping obstacles in the Red Sea. Witnesses include Peter Friedman, executive director of the Agricultural Transportation Coalition, and Eric Birch, secretary of the U.S. Dry Pea and Lentil Council.
Joe Glauber, a senior fellow at the International Food Policy Research Institute, said the disruption had increased insurance costs for ships and significantly increased transit times for grain departing from Europe and the Black Sea.
Below is a list of agricultural or rural-related events scheduled for this week in Washington and elsewhere (all times Eastern Daylight Time).
Monday, February 5th
All USDA Winter Policy Conference, Conrad Washington through Wednesday.
The Crop Insurance Industry Annual Conference runs through Wednesday in Scottsdale, Arizona.
Tuesday, February 6th
Clean Fuels Conference 2024 in Fort Worth through Thursday.
Wednesday, February 7th
9:00 a.m. – House Ways and Means Subcommittee hearing on the upcoming 13th Ministerial Meeting of the World Trade Organization (1100 Longworth).
10 a.m. – Federal Maritime Commission Hearing on Red Sea Transportation Disruption, 395 E St. SW.
11 a.m. – USDA releases 2024 farm income projections.
Thursday, February 8th
8:30 a.m. – USDA releases weekly export sales report.
Noon – USDA releases monthly global agricultural supply and demand estimates and crop production reports.
Friday, February 9th
For more news, visit Agri-Pulse.com.
