Democrats and Republicans Propose Dueling COVID-19 Bills
Both Democrats and Republicans are putting forth their own COVID-19 relief bills. The House is expected to vote this week on a budget resolution regarding President Biden’s $1.9 trillion COVID-19 response and economic stimulus proposal. The vote would mark the first step in passing the bill via the reconciliation process, which would allow Democrats to pass the relief bill without Republican support.
Reconciliation allows Congress to change existing tax and spending laws to match new tax and spending levels set in a budget resolution. Most importantly, it may not be filibustered.
In all, the use of reconciliation means Democrats would only need 50 votes in the Senate to pass a tax reform bill (with the vice president casting the deciding 51st vote).
Across the aisle, Republicans are proposing a $600 billion bill that includes a proposal for direct stimulus checks of up to $1,000. Ten Republican senators are scheduled to meet with the president later today to discuss their proposal.
Biden Administration Looks to Broaden WOTUS Rule
President Biden has taken aim to reverse the Trump administration’s narrowing of the Waters of the United States (WOTUS) Rule. In two executive orders, Biden called on the Environmental Protection Agency (EPA) and the Defense Department to review the Trump-era federal waters definition and revoked a 2017 Trump order calling for a review and reversal of the Obama rule.
The rule was originally established by the Obama administration and expanded the definition of waters that fall under the EPA’s jurisdiction. Under Trump, federal jurisdiction over some small streams and ditches was lifted. The rule is currently being litigated and is in effect in every state except Colorado.
House Proposes Minimum Wage Increase to $15
Last Tuesday, House Democrats reintroduced the Raise the Wage Act of 2021, which would raise the federal minimum wage from $7.25 to $15 by 2025. The bill is similar to legislation passed by the House in 2019. In addition to raising the wage to $15, the bill includes the following changes:
- Index future federal minimum wage increases to median wage growth;
- Phase out subminimum wage for tipped workers;
- Phase out subminimum wage for youth workers; and
- End subminimum wage for workers with disabilities.
The federal minimum wage was last raised in 2009, making this the longest period of time between an increase in the minimum wage.
Bipartisan Bill for SALT Restoration Proposed in House
The House has introduced bipartisan legislation to fully restore the State and Local Tax (SALT) deduction. The bill would allow taxpayers to fully deduct their state and local taxes on their federal income returns. In 2017, the SALT deduction was capped at $10,000.
Proponents of the bill point to the benefits for taxpayers in high tax states like California, New York, New Jersey, Connecticut and Illinois.
Department of Labor Removes Self-reporting Wage and Hour Program
The Department of Labor (DOL) has removed a Trump administration initiative that encouraged businesses to self-report wage-and-hour violations to the DOL in return for protection against further legal liability. The initiative, called the Payroll Audit Independent Determination program, was launched in 2018. The removal takes effect immediately.