Policy/Legislation
Senate Starts Budget Reconciliation Process: Senate Majority Leader Charles Schumer (D-NY) met with all 11 Democratic members of the Senate Budget Committee on Wednesday to begin the process for passing a budget resolution, paving the way for Democrats to pass a major $4 trillion infrastructure bill and tax hikes on a party-line vote, The Hill reports. The publication reports that Schumer said passing the budget resolution for fiscal 2022 in July would set the stage for passing a massive tax and infrastructure and social policy bill with only Democratic votes in the fall. Schumer also plans to bring a scaled-down bipartisan infrastructure bill to the Senate floor in July under regular order, requiring 60 votes to proceed, in a two-track process. If the scaled-down infrastructure bill fails, the original larger Biden plan would be included in reconciliation, but would require every Senate Democrat to vote for it to pass.
Bipartisan Senate infrastructure Offer Has No Tax Hikes: Politico reports that Senator Susan Collins (R-ME) said that the infrastructure package being developed by a group of bipartisan senators won't include a gas tax hike and that it won't dismantle former President Donald Trump's 2017 tax law. Instead, Collins said infrastructure investments could be funded by creating an infrastructure financing authority, shifting unused COVID-19 relief funds and ensuring that electric vehicle users, who don't pay a gas tax, contribute to the upkeep of infrastructure. With support from just 20 senators thus far, the package faces an uncertain future and a July 4 White House deadline for finalization.
Wealth Surtax Bill Revived in Congress: ThinkAdvisor reports that Senator Chris Van Hollen (D-MD) and Rep. Don Beyer (D-VA) last week reintroduced the Millionaires Surtax Act, legislation that would apply an additional 10% tax to incomes above $2 million for married couples or above $1 million for individuals. The bill, which was first introduced in 2019, is co-sponsored by Sens. Sherrod Brown (D-OH), Amy Klobuchar (D-MN) and Jeff Merkley (D-OR). It would apply equally to wages and salaries as well as to capital gains and other investment income.
Senators Ask SEC to Require Climate Risk Data: In a letter to the U.S. Securities and Exchange Commission, Sens. Brian Schatz (D-HI) and Sheldon Whitehouse (D-RI) urged the agency to require that publicly traded companies disclose greenhouse gas emissions data, Reuters reports. The agency's chairman, Gary Gensler, has said the SEC could issue a new rule on the matter in the second half of the year.
House Passes Corporate Disclosure Bill: The Hill reports the United States House of Representatives passed legislation on Wednesday that would require public companies to disclose data to shareholders regarding key metrics such as political spending, efforts to plan for climate change risks and worker pay disparities. Lawmakers narrowly passed the bill by a largely party-line vote of 215-214.
Regulation
DOL Plans Rule to Update Fiduciary Definition: The DI Wire reports that the Department of Labor has confirmed in its Spring 2021 regulatory agenda that the Employee Benefits Security Administration plans to make changes to the Trump administration’s fiduciary rule, including amending the regulatory definition of the term “fiduciary.” According to the proposed rule summary, the fiduciary definition amendment would “take into account practices of investment advisers, and the expectations of plan officials and participants, and individual retirement account owners who receive investment advice, as well as developments in the investment marketplace, including in the ways advisers are compensated that can subject advisers to harmful conflicts of interest.”
SEC Plans to Revise Accredited Investor Definition: Crowdfund Insider reports that the SEC has outlined its regulatory agenda for the coming months and at the top of the list are exempt securities that include Reg D and perhaps other exemptions such as Reg CF and Reg A+. Of note, is that the accredited investor definition may receive a change as well. In a statement published on Friday, SEC Chairman Gary Gensler stated: “To meet our mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation, the SEC has a lot of regulatory work ahead of us. I look forward to collaborating with my fellow commissioners and the dedicated staff to propose and finalize rules that will strengthen our markets, increase transparency, and safeguard investors.”
