Author: Trey Jackson

Fed Poised to Raise Interest Rates Amid Growing Concerns About Escalating Trade Disputes

Posted on by Trey Jackson

Federal Reserve policymakers this week signaled they are likely to raise interest rates next month, after releasing minutes of their most recent Federal Open Market Committee (FOMC) meeting showing growing concerns over the economic repercussions from escalating trade disputes. 

Fed Chairman Jerome Powell today delivered remarks on “Monetary Policy in a Changing Economy” at the Federal Reserve Bank of Kansas City’s annual economic symposium .  (reference:  Powell’s speech, Aug. 24)  

  • Fed Chairman Jerome Powell today delivered remarks on “Monetary Policy in a Changing Economy” at the Federal Reserve Bank of Kansas City’s annual economic symposium .  Powell said the Fed faces two major risks of “moving too fast and needlessly shortening the expansion, versus moving too slowly and risking a destabilizing overheating.  I see the current path of gradually raising interest rates as the FOMC approach to taking seriously both of these risks.”  ( Powell’s speech , Aug. 24)   
  • As central bankers and economists gathered this week for the symposium, Kansas City Fed President Esther George yesterday told Bloomberg Television, “My own forecast is that it will be appropriate to raise rates a couple more times this year.”  Dallas Fed President Robert Kaplan added in a CNBC interview that he sees three or four rate increases necessary over the next nine to 12 months.  
  • FOMC members are aiming to set interest rates to a “neutral” setting — one that neither spurs nor slows economic growth.  Powell’s comments at today’s symposium come after his testimony before the Senate Banking Committee last month, when he stated, “With a strong job market, inflation close to our objective, and the risks to the outlook roughly balanced, the FOMC believes that – for now – the best way forward is to keep gradually raising the federal funds rate,” (Roundtable Weekly, July 20)  
  • Regarding commercial real estate, the FOMC’s meeting minutes released Wednesday show “CRE loans at banks maintained solid growth over the past several quarters, with growth shared across all three major CRE loan categories.”

    • FOMC minutes show growing concern among monetary policymakers over how trade disputes could pose a threat to economic growth.

  • The minutes also show growing concern among monetary policymakers over how trade disputes could pose a threat to economic growth.  “All participants pointed to ongoing trade disagreements and proposed trade measures as an important source of uncertainty and risks.  Participants observed that if a large-scale and prolonged dispute over trade policies developed, there would likely be adverse effects on business sentiment, investment spending, and employment,” according to the  Fed’s minutes.  
  • “Moreover, wide-ranging tariff increases would also reduce the purchasing power of U.S. households.  Further negative effects in such a scenario could include reductions in productivity and disruptions of supply chains,” the minutes continue.  
  • Yesterday, the U.S. and China started implementation of 25 percent tariffs on $16 billion worth of each other’s goods, according to Reuters.  The negative economic impact of tariffs on each state is the focus of a recent U.S. Chamber of Commerce analysis.  (Politico’s Morning Money, Aug. 23)  
  • Commenting on last week’s Q3 Real Estate Roundtable Economic Sentiment Index, Roundtable President and CEO Jeffrey DeBoer noted, “Looking to future market conditions, industry executives are noting uncertainties regarding the November midterm elections and growing interest rate and international trade concerns.  Policymakers must stay focused on developing pro-growth policies that continue to benefit the overall economy and spur job growth.” 

The FOMC’s next meeting is scheduled for Sept. 25-26.  Former Fed Governor Kevin Warsh (2006 to 2011) will address Roundtable members on Sept. 26 during The Roundtable’s Fall Meeting in Washington, DC.

Hospitality CEOs Meet With President Trump to Advocate Reauthorization of Brand USA Program; Visa Application Process Improvements

Posted on by Trey Jackson

The vital contributions to the U.S. economy and job creation by the travel and tourism industry were the focus of a meeting Tuesday between President Trump and CEOs of 13 hospitality companies, including four members of The Real Estate Roundtable. 

Among the hotel CEOs participating in the White House meeting on travel and tourism this week were former Real Estate Roundtable Chairman Chris Nassetta of Hilton, along with Roundtable members Elie Maalouf of InterContinental Hotels Group; Patrick Pacious of Choice Hotels International; and James Risoleo of Host Hotels & Resorts, Inc. 

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  • The White House meeting focused on ways the Trump Administration and private industry can work together to achieve travel-related economic growth.  Among the policies discussed to help improve inbound travel: expanding and enhancing secure visa policies; supporting the Brand USA destination marketing agency; the importance of international inbound travel to reduce the growing trade deficit; and transportation infrastructure — all critical to increasing both international and domestic travel. 
  • Among the hotel CEOs participating in the meeting were former Real Estate Roundtable Chairman Chris Nassetta of Hilton, along with Roundtable members  Elie Maalouf of InterContinental Hotels Group; Patrick Pacious of Choice Hotels International; and James Risoleo of Host Hotels & Resorts, Inc. 
  • The Visit U.S. coalition, which includes The Roundtable, is urging Congress to reauthorize Brand USA — the nation’s tourism marketing program, which is not supported by taxpayer dollars, but through fees on foreign visitors who do not require a visa when entering the U.S.  Legislation is needed to authorize the program beyond 2020 and ensure that visitor fees authorized for collection from 2021 to 2027 will not be diverted to the Treasury Department, as currently scheduled. 
  • An FY2017 return on investment analysis showed each dollar of Brand USA marketing generated almost 28 dollars in visitor spending.  Moreover, Brand USA-generated international visitor spending is estimated to have produced 486 million dollars in federal tax revenue, and another 526 million dollars in state and local tax revenue.
  • Roger Dow, president and CEO of the U.S. Travel Association, said, “The president is a keen listener whenever you’re talking about growing the economy, and he was receptive to the idea that travel growth can be achieved without compromising security.” 

A panel discussion at The Roundtable’s June 14 Annual Meeting focused on the travel and tourism issue.  Participants included Senator Amy Klobuchar (D-MN); Roundtable Board Member Anthony E. Malkin, Chairman and CEO, Empire State Realty Trust; USTA’s Roger Dow; and American Hotel & Lodging Association’s President and CEO Katherine Lugar.  (Roundtable Weekly, June 15, 2018.)

Roundtable Calls for Congress to Pass Cyber Security Bill, Increase Digital Competitiveness

Posted on by Trey Jackson

The bipartisan Cyber Diplomacy Act (H.R. 3776) will advance America’s public and private efforts to safeguard cyberspace and enhance the nation’s economic competitiveness in a global digital economy.  That is the message sent by The Roundtable, U.S. Chamber of Commerce and five other national trade organizations in a joint letter last week to Senate Majority Leader Mitch McConnell (R-KY), Minority Leader Chuck Schumer (D-NY) and all other U.S. Senators. (Joint Letter, Sept. 26)

The  Roundtable and six other national trade organizations sent a Sept. 26 joint letter on cybersecurity policy to all members of the U.S. Senate. (Joint Letter)

  • The bill – introduced by House Foreign Affairs Committee Chairman Ed Royce (R-CA) – passed the House in January, was reported out of the Senate Committee on Foreign Relations in June and is currently under consideration by the Senate.
  • H.R. 3776 would task the State Department with establishing a unified Office for Cyberspace and Digital Economy, which would consolidate efforts relating to international cybersecurity, internet access, internet freedom, digital economy, cybercrime, deterrence, and international responses to cyber threats.  (The Washington Times, Sept. 27)
  • The Sept. 26 joint letter states, “We believe that a focused, centralized, and appropriately placed office led by an ambassador-rank official would aid U.S. cybersecurity and digital economy efforts. We believe that enactment of this bill would send a powerful message that the U.S. intends to preserve and protect a secure, reliable, and open internet.” 
  • The cybersecurity issue is a key focus of The Roundtable’s Homeland Security Task Force (HSTF), which encourages measures to address the global cyber threat and effective information sharing..

The Roundtable’s Homeland Security Task Force will discuss cyber security and other issues affecting real estate during its upcoming meetings at FBI offices in New York (Oct. 18) and Washington, DC (Nov. 13).

 

Policymakers, Roundtable Members Focus on Economy, Elections, And Monetary Policy

Posted on by Trey Jackson

This week’s Real Estate Roundtable Fall Meeting featured discussions with U.S. policymakers regarding national public policies affecting the commercial real estate industry, job creation and the economy. 

Roundtable Chair Debra A. Cafaro (Chairman & CEO, Ventas, Inc.)

  • Roundtable Chair Debra A. Cafaro (Chairman & CEO, Ventas, Inc.) opened the meeting stating: “The ‘results-oriented’ focus of The Roundtable continues to emphasize our optimism about the economy and the positive contributions the real estate industry provides as a job creator and a cornerstone for retirement savings.”   She added, “we must continue to proactively advance policies that promote a healthy balance of capital and people flows to create sustainable economic growth that is good for our industry and our national economy.” 

Meeting speakers included:  

  • Colorado Governor John Hickenlooper (D-CO) called for private-public collaboration to address a range of national policy challenges affecting urban, suburban and rural areas, including workforce housing and infrastructure.
  • Sen. Tim Kaine (D-VA) discussed incentivizing the private sector to achieve pro-growth economic policy. 

    Colorado Governor John Hickenlooper (D-CO) called for private-public collaboration to address a range of national policy challenges affecting urban, suburban and rural areas, including workforce housing and infrastructure.

     

  • Craig S. Phillips — counselor to U.S. Department of Treasury Secretary Steven Mnuchin — addressed issues such as GSE reform; reauthorization of the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) beyond its scheduled expiration date at the end of 2020; the ongoing implementation of recent tax law changes; and the new federal “Opportunity Zones” investment program. (Roundtable Comment Letter, June 28)  
  • Sen. David Perdue (R-GA) — member of the Senate Banking, Housing and Urban Affairs Committee and the only former Fortune 500 CEO in Congress — emphasized the need for bipartisanship in Congress to address an ongoing budget deficit crisis and eliminate regulatory redundancy.
  • Kevin Warsh — former Governor, Federal Reserve (2006-2011) — discussed the strength of the current economy and future potential economic risks.  Mr. Warsh’s op-ed in the Wall Street Journal this week addresses the Fed’s nearly $3 trillion balance sheet and maintaining a “neutral real interest rate.”
  • Bob Woodward — Pulitzer Prize-winning Journalist & Author, The Washington Post — spoke about his latest book, Fear: Trump in the White House and the mid-term elections. 

The Roundtable’s State of the Industry Meeting and it’s policy advisory committees will meet January 29-30, 2019 in Washington, DC.

House Passes “Tax Reform 2.0” Legislation; President Trump Signs Government Funding Bill

Posted on by Trey Jackson

he House today passed “Tax Reform 2.0” legislation (H.R. 6760) that would make permanent the 2017 tax cuts for individuals and certain pass-through businesses – currently set to expire at the end of 2025. 

The   House today passed “Tax Reform 2.0” legislation (H.R. 6760) that would make permanent the 2017 tax cuts for individuals and certain pass-through businesses – currently set to expire at the end of 2025.

  • As GOP policymakers seek to highlight last year’s Tax Cuts and Jobs Act (P.L. 115-97) as their signature achievement before the November mid-term elections, today’s bill passed on a mostly partisan vote of 220-191. Among the provisions in H.R. 6760:
    • Individual marginal rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%;
    • Capping the deduction for state and local taxes (SALT) at $10,000; and
    • a 20% tax deduction for the business income of certain pass-through businesses. 
  • “By making the new code permanent for families and small businesses, the Protecting Family and Small Business Tax Cuts Act will keep America’s economy booming,” House Ways and Means Committee Chairman Kevin Brady (R-TX) said on the House floor. 
  • The House on Thursday passed two other tax bills (H.R. 6756 and H.R. 6757) that would expand incentives for retirement savings and startup businesses. All three bills now go to the Senate, where chances to pass H.R. 6760 are unlikely without support from Democrats. 
  • Also today, President Trump signed a spending bill that funds most government programs through Sept. 30, 2019 while extending others via a “Continuing Resolution” until Dec. 7.  Funding for those programs was scheduled to expire on Sunday at midnight. (White House Statement, Sept. 28) 
  • Among the programs extended for another year is the EB-5 immigration investment program – the 14th extension since Sept. 2015.

As the confirmation process for President Donald Trump’s Supreme Court nominee Brett Kavanaugh dominated the Senate this week, the House adjourned today until after the midterm elections. (Politico, Sept. 28).

FBI Briefs Roundtable’s HSTF on Commercial Sector Holiday Security; Real Estate Information Sharing and Analysis Center Featured in Homeland Security Today; FINCEN Expands Metro Areas Subject to Real Estate Purchase Review

Posted on by Trey Jackson

A day-long briefing this week by senior officials of the Federal Bureau of Investigation (FBI) to The Roundtable’s Homeland Security Task Force (HSTF) and the National Retail Federation focused on maintaining vigilance in the commercial sector during the holiday season; counterterrorism trends; criminal gang trends; organized retail crime; terrorism financing and an analysis of recent active shooter and workplace violence incidents.     

This week, the  Real Estate Information Sharing and Analysis Center ( RE-ISAC ) was featured in an article in Homeland Security Today written by Roundtable SVP Clifton “Chip” Rodgers Jr. and Andy Jabbour of Gate15, which provides support to the RE-ISAC. 

  • “Terrorism continues to pose a clear and present danger to our nation, to the American economy and to the commercial facilities sector.”  Homeland Security Today notes, “In response to these ongoing threats, the RE-ISAC has brought together industry organizations to work together with federal, state and local law enforcement and intelligence agencies to prevent, detect and respond to terrorist threats and malicious incidents.”
  • The article also states, “The RE-ISAC is the designated conduit of terrorism, cyber and natural hazard warning and response information between the government and the commercial facilities sector.”    
  • The Real Estate Roundtable in February 2003 organized the RE-ISACas a public-private partnership between the U.S. commercial facilities sector and federal homeland security officials to proactively manage risk and strengthen the security and resilience of the U.S. commercial facilities/real estate critical infrastructure.
  • While the Department of Homeland Security’s National Protection and Programs Directorate (NPPD) is the primary federal partner of the RE-ISAC, the organization also works with the FBI, the National Joint Terrorism Task Force, Federal Emergency Management Agency (FEMA) and a number of other law enforcement and intelligence agencies.
  • DHS announced yesterday that Congress passed legislation to reorganize the NPPD, creating the Cybersecurity and Infrastructure Security Agency – CISA. (DHS, Nov. 13)
  • The CISA Act (H.R. 3359), which passed the House yesterday, the Senate in October, and was signed by President Trump today, will prioritize CISA’s mission as “the Federal leader for cyber and physical infrastructure security.”

Separately, The Financial Crimes Enforcement Network (FinCEN) on Nov. 15 announced the issuance of revised Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate.  The purchase amount threshold, which previously varied by city, is now set at $300,000 for each covered metropolitan area.  The GTOs cover certain counties within the following major U.S. metropolitan areas: Boston; Chicago; Dallas-Fort Worth; Honolulu; Las Vegas; Los Angeles; Miami; New York City; San Antonio; San Diego; San Francisco; and Seattle. (Wall Street Journal, Nov. 15)

 

Midterm Elections Produce Divided Congress; Lame Duck Session Faces Government Funding Deadline

Posted on by Trey Jackson

Lawmakers return to Washington next week for a Lame Duck session after midterm elections that secured Democratic control of the House in January.  Policymakers will immediately face a Dec. 7 deadline to fund parts of the government that may collide with President Trump’s goal to fund a border wall on the Mexican border – a possible impasse that could threaten a partial government shutdown.

Lawmakers return to Washington next week for a Lame Duck session after midterm elections that secured Democratic control of the House in January.

  • Senate Majority Leader Mitch McConnell (R-KY) this week cautioned against a possible shutdown.  “75 percent of the government got funded before the end of September and we all know we need to work together here at the end to finish that up.  So we’re going to do the best we can to achieve the president’s priorities. And hopefully we won’t be headed down that path,” McConnell said. (Politico, Nov. 7) 
  • Several immigration programs (including the EB-5 investment program) are scheduled to expire on Dec. 7 unless Congress pursues its typical course and extends them as part of the next government funding measure.  However, Congress also faces a Nov. 30 funding expiration for the National Flood Insurance Program. 
  • Other major legislation is not expected to pass during the Lame Duck, although President Trump and Democrats have recently expressed interest in working together on an infrastructure package (CNBC, Nov. 7).   Congress may also consider a tax bill with technical corrections and an extension for expiring tax breaks that could carry over to the new year.
  • Beyond the Lame Duck, it is expected that both parties in the 116th Congress will introduce legislation to maneuver for public favor affecting the 2020 presidential campaign.  (AP, Nov. 7)  

    Roundtable President and CEO Jeffrey DeBoer said, “We believe we will continue to be successful in Washington – regardless of which party controls the power levers – by maintaining our focus on smart research; strong political relationships; and our long-standing positive bipartisan approach to advocacy that emphasizes commercial real estate’s contributions to job creation, communities, retirement savings and overall economic strength.”

  • A new Congress will also bring Democratic control of House committees and a substantial new policy dynamic.  Extensive hearings on last year’s tax overhaul are expected from the new chair of the House Ways and Means Committee Richard Neal (D-MA), the long-standing leader of the House Real Estate Caucus. 
  • Nancy Pelosi (D-CA), who served as Speaker of the House from 2006-2011 and is favored to re-assume that role, stated her caucus plans to revive a “Select Committee on Energy Independence and Global Warming” that will lend heightened focus on risks and impacts from climate change and extreme weather events. (The Hill, Nov. 8.) 
  • It is also possible that GSE reform and a focus on housing issues could gain traction in next year’s House Financial Services Committee, which will be led by incoming Chair Maxine Waters (D-CA).  Her committee will also consider reauthorization of the federal terrorism insurance program. 
  • GlobeSt reported this week there “is one piece of must-pass legislation for the CRE industry that will require bipartisan support – the Terrorism Risk Insurance Act, which is set to expire at the end of 2020.  This law impacts most business properties and is a key to transactions and refinancing. Without a doubt it has to be extended.”  (What A Divided Government Means For CRE, Nov. 7) 

The new dynamic of a divided Congress will refocus the commercial real estate industry on its policy agenda. Roundtable President and CEO Jeffrey DeBoer said, “The Real Estate Roundtable will maintain its steady course. We believe we will continue to be successful in Washington – regardless of which party controls the power levers – by maintaining our focus on smart research; strong political relationships; and our long-standing positive bipartisan approach to advocacy that emphasizes commercial real estate’s contributions to job creation, communities, retirement savings and overall economic strength.”

The Roundtable will hold its State of the Industry Meeting on January 29, 2019 in Washington, DC.

Commercial Real Estate Industry Leaders See Positive Market Fundamentals for Remainder of 2018

Posted on by Trey Jackson

Commercial real estate executives continue to see strong and balanced market conditions for the remainder of 2018 and moving forward into the new year, according to The Real Estate Roundtable’s Q4 2018 Economic Sentiment Index released today.

Commercial real estate executives continue to see strong and balanced market conditions for the remainder of 2018 and moving forward into the new year, according to The Real Estate Roundtable’s Q4 2018 Economic Sentiment Index. 

“Our latest Sentiment Index finds commercial real estate industry leaders experiencing continued positive market conditions and cautiously predicting solid performance into 2019. Concerns exist about interest rate and construction cost increases, as well as labor shortages. However, these concerns have not yet caused significant market disruption.” said Roundtable President and CEO Jeffrey DeBoer. “With some exceptions, supply and demand in major markets remains essentially in balance, and access to debt and equity remains strong. Disciplined, not aggressive, development and investment are the current watchwords of smart real estate executives,” DeBoer added. 

The Roundtable’s Q4 2018 Sentiment Index registered at 50 — a two point decrease from Q3 2018. [The Overall Index is scored on a scale of 1 to 100 by averaging Current and Future Indices; any score over 50 is viewed as positive.] This quarter’s Current Conditions Index of 53 decreased by three points from the previous quarter. This time last year, the Q4 2017 Current Conditions Index registered at 53 as well, highlighting the sustained equilibrium in the market this past year. This quarter’s Future Conditions Index of 47, decreased by two points from the previous quarter. 

The report’s Topline Findings include:

  • The Q4 index came in at 50, a two point drop from Q3. Most suggest that current market conditions are positive and expect such conditions to continue into the new year. However, some responders continue to question, “How much longer can this last?”   
  • Responders pointed to the increase in costs for constructions projects and the corresponding decline in development returns as a concerning market factor. As a result, fewer responders were highly optimistic about market conditions in 2019 as yield becomes increasingly hard to find.   
  • For the first time in many quarters, a large proportion of responders are indicating a belief that asset values will start declining. However, pricing is expect to stay relatively strong for assets in major markets. 
  • Responders feel debt and equity capital are plentiful in today’s market. Equity investors and lenders alike continue to show strong appetite for real estate.

Ninety percent of survey participants report Q4 2018 asset values today are “about the same” or “somewhat higher” compared to this time last year. Looking ahead, a minority of participants said they expect values to be “somewhat lower” one year from now with 55% of respondents seeing no significant value declines.

DeBoer noted, “After the midterm elections we look forward to continuing to work on positive, pro-growth national public policy. The nation needs policy action to address the growing labor shortage and infrastructure needs. The terrorism risk insurance act will also need to be extended in the new Congress. We intend to try to help policymakers tackle these and others issues by offering smart research and positive bipartisan advocacy that emphasizes commercial real estate’s contributions to job creation, communities; and retirement savings.” 

Data for the Q4 survey was gathered in October by Chicago-based FPL Associates on The Roundtable’s behalf.

Commercial Real Estate Industry Pioneer Marshall Bennett

Posted on by Trey Jackson

The commercial real estate industry mourns the recent passing of real estate industry icon Marshall Bennett.  He was 97.  (Chicago Tribune, Oct. 16)

Commercial real estate industry icon Marshall Bennett passed away this week at the age of 97.

  • Marshall Bennett was one of the most successful real estate developers in Chicago and a pioneer of the modern industrial park.  In 1946, Bennett and Louis Kahnweiler, with financial backing from Jay Pritzker, launched Centex Industrial Park in the 1950s on more than 2,000 acres in Elk Grove Village—opening up the O’Hare submarket to large, industrial properties. This facility would become the nation’s largest and serve 1,500 companies. Throughout their partnership, Bennet and Kahnweiler amassed a portfolio of 26 industrial parks around the country. (RE Journals, Oct. 16)
  • Among his many accomplishments, Bennett was a World War II Navy veteran; was inducted into the Chicago Board of Realtors Hall of Fame in 1989; and served on the board of the East-West Institute global think tank. He also co-founded the Chicago Ten, an interfaith group that worked for peace in the Middle East.

Notably, Bennett co-founded Roosevelt University’s Marshall Bennett Institute of Real Estate in 2002. He helped raise $11 million to start the school as a training ground for real estate professionals. Since its inception, the program has graduated almost 325 in two master’s degree programs. (Crain’s Chicago Business, Oct. 15)

House Ways and Means Chairman Kevin Brady (R-TX) Releases Tax Bill Addressing “Extenders” and Technical Corrections

Posted on by Trey Jackson

House GOP leaders yesterday delayed a vote on a $54 billion dollar tax bill released Monday (H.R. 88) by House Ways and Means Chairman Kevin Brady (R-TX) that includes tax “extenders” and technical corrections of importance to commercial real estate.  (Brady Statement, Nov. 26 and CQ, Nov. 30) 

GOP leaders yesterday delayed a vote on a $54 billion dollar tax bill released Monday (H.R. 88) by House Ways and Means Chairman Kevin Brady (R-TX), above, that includes tax “extenders” and technical corrections of importance to commercial real estate.  (Brady Statement, Nov. 26)

  • Specific provisions affecting real estate include technical corrections to fix errors in last year’s Tax Cuts and Jobs Act.  The bill would:
  •  
    • shorten the cost recovery period for qualified improvement property, a new category of depreciable property that covers upgrades and improvements to the interior of nonresidential buildings;
    • clarify that the new 20 percent deduction for pass-through business income extends to REIT dividends received by mutual fund shareholders;
    • temporarily extend the expired deduction for energy-efficient commercial building property (Section 179D); and
    • temporarily extend other expired provisions affecting homeowners, such as a deduction for mortgage insurance premiums and a tax exclusion for mortgage debt forgiveness.  (Roundtable Weekly, Oct. 19) 
  • In October, The Roundtable along with 239 businesses and trade groups, wrote to Secretary Mnuchin urging the Treasury Department to provide administrative relief from a drafting mistake that increased the cost recovery period for qualified improvement property (QIP) to 39 years, instead of 15. (Roundtable Weekly, Oct. 12)  

It is uncertain when the wide-ranging tax bill will be considered but debate on the legislation may take place next week.  

Senate Democrats, whose support is needed to assure passage of any tax changes before next year, reportedly, “are determined to win concessions in exchange for providing votes to fix errors in last year’s law.  (Wall Street Journal, Nov. 30)  Yet it remains unclear what concessions Democrats are seeking.  When asked about the bill’s prospects in the Senate, Sen Charles Grassley (R-IA), the likely Senate Finance chairman next year, said “Not if brought up separately, only if it’s put in the funding bill.”  (CQ, Nov. 28).