The lame-duck session is an ideal time for both parties to pass last-minute legislation while voters are busy Christmas shopping and before members who lost their reelection bids surrender their seats in January.
- The first looming budget buster is the maintenance of discretionary spending at the exorbitant levels we saw during the pandemic, rather than a return to much lower-as in 20 percent lower-pre-pandemic spending
- It might make sense during emergencies for Congress to increase spending.
- However, after the emergency passes, temporary programs-or temporary expansions of previously existing programs-should be allowed to expire and spending should fall back to where it was
Second, Congress is likely to try extending or delaying various expiring or emergency provisions while also waiving a rule, the PAYGO sequester, that would offset some of the money.
- Some of the relevant provisions include three from the Tax Cuts and Jobs Act of 2017
- 100 percent bonus depreciation allowing business equipment purchases to be deducted immediately
- Legislators are also likely to reinstate a few tax extenders that expired at the end of 2021 which would cost taxpayers $20 billion over 10 years
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