Tax Policy Update - July 29, 2015

NUMBER OF THE WEEK: 3

First it was three years, now it's three months. The Senate's attempt to pass a multiyear highway bill ran off the road this week after House Republicans announced they will adjourn one day early for the month-long August recess. The House's early departure forced the Senate to acquiesce to a short-term patch in order to keep the Highway Trust Fund solvent beyond July 31. The three-month patch is paid for by a collection of tax enforcement measures—the same offsets contained in a five-month patch the House passed earlier this month. The deal sets up the next collision of wills between the Senate and House in late October, when the debate over how to pay for a long-term highway authorization will bleed into the tug-of-war over how to handle tax extenders. Read more details below.