There’s a deal in principle on the Affordable Care Act cost-sharing reduction payments. Sens. Lamar Alexander and Patty Murray have a plan to restore ACA CSR payments for two years in exchange for giving states more flexibility in administering the ACA. The plan could also restore just over $100 million in funding for ACA outreach. But will it get through Congress?
Speaking of the ACA. Although Trump Administration has taken several steps to undermine the insurance exchanges, the IRS has announced that for the 2018 filing season it will only accept returns that declare that a filer has health insurance or has an exemption from coverage. The IRS had backed away from the requirement after the president issued an executive order requiring agencies to reduce burdens of the ACA. Requiring filers to report on their insurance status may encourage some to buy coverage.
As for the Senate budget… The Senate began its budget debate yesterday, and expects a final vote later this week. If it passes, the Senate can approve a tax cut with 51 votes instead of 60. One key supporter, Sen. Thad Cochran, has been ill but returned to Washington to vote on the budget. Sen. John McCain indicated the central reason for his “yes” vote—announced late yesterday—was for tax reform.
Trump will meet with more Senate Democrats on taxes. The president will meet with several Finance Committee Democrats, including Debbie Stabenow of Michigan, Bob Casey of Pennsylvania and Sherrod Brown of Ohio—all states Trump won in 2016. Top committee Democrat Ron Wyden will also attend.
Will tax legislation include estate tax repeal? Ever since Treasury Secretary Mnuchin admitted that repealing the estate tax would largely benefit wealthy people, GOP senators Susan Collins, Mike Rounds, and Tim Scott have expressed reservations about its repeal. Some Republican House members are questioning the efforts as well. Undoing the estate tax would cost $279 billion over a decade and benefit only 5,000 of the very wealthiest each year.
What could tax legislation do for lower-income families? The New York Times offers a look at how changes to the child tax credit will be the make-or-break issue. Writing for The Atlantic, long-time Democratic White House aide Gene Sperling explains why tax relief for American workers should include expanding the Earned Income Tax Credit (EITC), currently available to low-income workers with children. Sperling offers four reasons to move toward “EITC for All,” including childless workers.
October 31: TPC Distinguished Speaker Series hosts IRS Commissioner John Koskinen. Koskinen will be the next guest in TPC’s Distinguished Speaker Series. On Tuesday, Oct. 31, from 11:00 to 11:45, Koskinen and TPC director Mark Mazur will discuss Koskinen’s four years at the IRS and address the challenges of tax administration. Register to attend or see the live webcast here.
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