Tax Policy Update

August 1, 2017

Pardon Our Dust

We recently launched this new site and are still in the process of updating some of our archived content. Some details of this article may be incomplete, links may be broken, and other elements may not display properly yet. We appreciate your patience and understanding.


Source: C-SPAN and Buzzfeed News

Here’s a screen grab of the Senate floor during the wee hours of July 28when Sen. John McCain (R-AZ) raised his arm for recognition and votedagainst the Senate GOP’s “skinny repeal” bill. The dramatic thumbs-downfrom the senior senator of Arizona tanked the Republicans’ seven-yearefforts to repeal and replace Obamacare. If you haven’t seen it already,check out Buzzfeed News’s play-by-play of the votehere.

Programming Note: The Tax Policy Update (TPU) will be on break for the Augustrecess. But keep your eyes open for a special alert from McGuireWoods’ taxpolicy team around mid-August in which we will assess where things stand ontax reform, healthcare, infrastructure, and regulatory reform. Consider ityour summer beach reading! The TPU will be back in your inbox in September.


The “No” Heard ‘Round the World. Despite repeated promises to repeal and replace the Affordable Care Act, attempts to pass a watered down “skinny bill”failed. Three Republican senators, Susan Collins (ME), Lisa Murkowski (AK),and John McCain (AZ), joined all 48 Democrats, to vote against a bill thatwould have eliminated the individual mandate penalty, the employer mandatepenalty for eight years, and the medical device tax for three years. Noamount of pressure…

To Market, To Market, To Buy Health Insurance. Infighting amongst the GOP continues, as Republicans remain split onfunding cost-sharing subsidy payments to insurers. Moderates like Sen.Susan Collins believe funding the subsidies…

The Little BAT That Couldn’t. The House GOP’s controversial border adjustment tax (BAT) landed with athud last week when the “Big Six” issued a joint statement on tax reform,announcing the death of the BAT. “While we have debated the pro-growthbenefits of border adjustability, we appreciate that there are manyunknowns associated with it and have decided to set this policy aside inorder to advance tax reform,” the statement said…

Keep Ya Head Up. It’s almost time for August recess. With the Senate GOP’s failed healthcarevote last week, House lawmakers saw no reason to stick around and havealready departed for summer vacation. Although Senate Majority Leader MitchMcConnell postponed recess for two weeks…


Treasury Ends myRA Program. On July 28, the U.S. Department of the Treasury announced that it willbegin to wind down the myRA program after it was found not to be costeffective. According to a press release by the Treasury Department, demandfor and investment in the program…

Treasury Delays Key Regulations Under Section 385. On July 28, the Internal Revenue Service and the Treasury Department issuedNotice 2017-36, which delays the documentation requirements ofearning-stripping regulations for an additional year…



  1. The House passed, 235-192, the “minibus” spending package (H.R. 3219) that contains four House appropriations bills for fiscal year 2018: (1) Defense, (2) Legislative Branch, (3) Energy-Water, and (4) Milcon-VA.


Congressional Activity

Tuesday, 8/1

Senate Finance Committee
Full committee hearing on “America’s Affordable Housing Crisis: Challengesand Solutions.”

Wednesday, 8/2

Senate Small Business Committee
Markup ofsix bills:

  • S. 154, the “Small Business Relief from Disease Induced Economic Hardship Act”
  • S. 650, the “Support Small Business R&D Act of 2017”
  • S. 690, the “HUBZone Investment Protection Act”
  • S. 929, the “Invest in Rural Small Business Act of 2017”
  • S. 1038, to require the Administrator of the Small Business Administration to submit to Congress a report on the utilization of small businesses with respect to certain Federal contracts
  • S. 1428, the “Small Business Cyber Training Act of 2017.”

Thursday, 8/3

Senate Finance Committee
Nomination hearing for the following:

  • Gilbert B. Kaplan to be Under Secretary of Commerce for International Trade
  • Matthew Bassett to be an Assistant Secretary of Health and Human Services

Agency Activity

Thursday, 8/3

Internal Revenue Service
An open meeting of the Taxpayer Advocacy Panel Taxpayer CommunicationsProject Committee will be conducted. The Taxpayer Advocacy Panel issoliciting public comments, ideas, and suggestions on improving customerservice at the Internal Revenue Service. Due to limited conference lines,notification of intent to participate must be made by phone.

Other Activity

Wednesday, 8/2

Freedom Partners and Americans for Prosperity
The Freedom Partners and Americans for Prosperity will host a tax reformdiscussion with Rep. Mark Meadows (R-NC).

For listings of all the week’s tax and financial services happenings, read below to find out how you can become a subscriber.

The McGuireWoods’ Tax & Financial Services Policy Group assists clients in understanding how the latest legislative and regulatory proposals anddecisions may impact their business and industry. To learn more about how our team can help you monitor, analyze, and navigate all relevant legislativeand regulatory developments, please contact any of our attorneys and consultants below at (202) 857-1700. For more information on how to subscribe toour weeklyTax Policy Update and tax news alerts, please contact Radha Mohan,, (202) 857-2944.

Russell Sullivan

Rosemary Becchi

Harold Hancock

Charlie Iovino
Vice President

Jessica Monahan
Vice President

Radha Mohan
Assistant Vice President

Lai King Lam
Assistant Vice President

Daniel Chung

Anne C. Starke
Research Associate