Weekly Legislative Update
December 5, 2022
Leaders Renew Talks For Tax Law Provisions On Government Funding Bill
If Senate and House leaders can overcome severe obstacles these final days to pass a Fiscal Year Omnibus Appropriations Act by Dec. 16, tax writers will have virtually unlimited scope to write both new tax law and changes, and see it all pass on the Omnibus.
There are a number of tax provisions due to expire between 2021-2025. The Work Opportunity Tax Credit expires at the end of 2025. There will be a another election in 2024, and if our goal is to enact permanent WOTC, or another five-year extension of WOTC, by the end of 2024, then our campaign must start on Jan. 3, 2023!
As Democrats are still in control of the Senate, Finance Committee Chairman Wyden and Ways and Means Chairman Neal (both Democrats) have begun talks for agreement on tax provisions they’re now exploring. Time is short, but they say they’ll communicate speedily till consensus is reached on a tax law package to be enacted on the Omnibus.
In the Senate, appropriations to fund the government haven’t been brought to the floor yet, but House appropriations bills for the twelve appropriations blocks have been completed, and some sent to the Senate.
Senator Schumer is in position to bring to the floor a budget reconciliation bill from last September, which is an appropriations measure. But reconciliation means Democrats going it alone, and the GOP can use the rules to delay as time runs out on the 117th Congress.
Passing an Omnibus at this late date could require Leader Schumer (D-NY) and Leader McConnell (R-KY) to cooperate. Failing that, the outcome might ditch the Omnibus and fund the government via continuing resolution lasting to around March 1.
Senators and congressmen remain the same as before until the 117th Congress gavels the end in December. The 118th Congress begins Jan. 3.
A Senate seat in Georgia will be decided by election on December 6th, but incumbent Senator Warnock (D-GA) holds his seat until the end of 117th Congress, should he lose the election.
Reminder: DOL Independent Contractor Rule- Comments Due Dec. 13
Just a reminder that comments for DOL’s Independent Contractor Proposed Rule are due on Dec 13.
Please remember to submit comments on Regulations.gov.
As Context:
On Oct. 13, 2022, the Department of Labor’s Wage and Hour Division (DOL) proposed a rule that would determine whether a worker is an independent contractor or an employee under the Fair Labor Standards Act (FLSA). Under the FLSA, companies are required to provide benefits such as minimum wage and overtime to employees, but not to independent contractors. To determine whether a worker is an employee or an independent contractor, the employer must analyze whether the worker is economically dependent on the employer for work or is in business for themselves.
The proposed rule would rescind a prior Trump administration rule, which adopted an economic reality test focused on two core factors – control and profit. DOL proposes an economic realities test that requires a totality-of-the-circumstances analysis of multiple factors.
Under this proposed rule, the six economic reality factors are:
- The opportunity for profit or loss depending on managerial skill.
- The investments by the worker and the employer.
- The degree of permanence of the work relationship.
- The nature and degree of employer control.
- The extent to which the work performed is an integral part of the employer’s business.
- The worker’s use of skill and initiative.
In its Initial Regulatory Flexibility Analysis, DOL estimates that millions of small businesses could hire and/or be independent contractors. DOL estimates compliance costs of under $25, which includes an estimate that it will take small businesses 15 to 30 minutes to read and understand the rule.
Comments on this rule are due on Dec. 13, 2022.
- Read and submit comments on the proposed rule in the Federal Register.
- Read the press release from DOL.
Thank you to our TopGolf Government Affairs Sponsors!
TIA organized a golf outing at TopGolf Las Vegas before GTE to benefit TIA’s government affairs efforts. We thank those who participated and to our event sponsors:
