Congress will have a big tax to-do list. NBC News charts the work ahead for the 119th Congress, namely the expiration of the Tax Cuts and Jobs Act of 2017, the expiration of expanded premium tax credits for insurance plans available through the Affordable Care Act, the debt ceiling, and (last but not least) funding of the federal government—which expires December 20.
Polar opposites: Tax policies of the presidential candidates. TPC’s Howard Gleckman reviews the divergent tax policy paths of Democratic presidential nominee, Vice President Kamala Harris, and Republican presidential nominee, former President Donald Trump.
IRS addressing inadvertent rejection of e-filed tax returns. IRS Commissioner Daniel Werfel told TaxNotes (paywall) the agency is working to correct an e-filing problem affecting single custodial parents. Such filers can be eligible to claim a tax credit (like the child tax credit, child care tax credit, or earned income tax credit) for their child, but their electronically filed tax returns can be rejected if their former spouse or partner files, improperly, for such a tax credit first. Werfel explained that this can leave the parent who cares for the child without the credit, because the IRS can’t immediately determine that the tax credit for the child was awarded to the wrong parent.
Taxes have gone up in the United Kingdom. The Chancellor of the Exchequer, Rachel Reeves, raised taxes Wednesday by about $52 billion to correct a an identified shortfall in public finances. She presented the budget last week—the Labour Party’s first since regaining power in July after 14 years of Conservative Party rule. The tax increases largely come from a 1.2 percentage point increase in national insurance contributions paid by employers.
Argentina’s tax amnesty program yields billions of dollars in bank deposits. Argentines have been storing their savings outside local banks due to instability, hyperinflation, and currency devaluation in Argentina’s economy. The government is encouraging residents to deposit up to $100,000 of their foreign currency tax-free into local banks’ deposit accounts. Deposits above that amount would face a 5 percent tax; that rate will increase to 10 percent after January. So far, Argentinians have deposited $18 billion back into local banks.
Congress is not in session. The Daily Deduction will return to its regular schedule when Congress returns, after November 11.
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