Record Spending and Future Tax Battles in Congress

Amidst the modest output of new laws from the 2023 Congress, the influence industry was ablaze, setting a new spending record as lawmakers strategically positioned themselves for forthcoming debates on tax policies. Official disclosures mandated by law revealed a staggering $4.27 billion in expenditure over the past year, marking a notable increase from the previous $4.14 billion, as per a detailed analysis by Bloomberg Government.

This 3.1% rise in spending occurred against a backdrop of reduced legislative activity, with legislators and advocates alike shifting focus towards future agendas, including the imminent expiry of key provisions from the 2017 Tax Cuts and Jobs Act. Without congressional intervention, tax brackets will revert to 2017 levels, halving the standard deduction, reintroducing personal exemptions, reducing the child tax credit, and eliminating the special 20% pass-through business tax deduction, as cautioned by the nonpartisan Tax Policy Center.

The impending fiscal cliff places immense pressure on Congress to undertake significant tax reform in 2025, irrespective of political control over the White House, House, and Senate.

If you would like to read more, click here for Bloomberg Tax’s article.