“Minibuses” on the Hill. Senate Majority Leader Mitch McConnell plans to pass spending bills for fiscal 2019 in groups of “minibuses.” His goal: Avoid last year’s chaotic appropriations process. He’d like to see the first two minibus bills on the Senate Floor in June, reports The Hill. Said McConnell: “It’s our hope that we’re not just marking these up in committee, but taking them to the floor and getting as close to a process that both sides will be comfortable with in the future.” One problem: Neither the Senate nor the House has yet to act on a single spending bill. Still, a guy can hope, can’t he?
A bit more for the IRS budget. If Congress ever does pass a budget, it may have a few dollars more for the IRS. The House Appropriations Financial Services Subcommittee has agreed to give the agency $11.6 billion for next year, up $186 million from 2018. Most of the additional funding would be used to implement the Tax Cuts and Jobs Act.
The IRS ID’s another phishing scam. This one is aimed at tax preparers and appears to be coming from state accounting and professional organizations. The fake emails asked tax professionals in Iowa, Illinois, New Jersey, and North Carolina for their email usernames and passwords.
Don’t throw that SALT over your shoulder just yet, states. TPC’s Steve Rosenthal explains the latest IRS notice warning states to slow down if they are thinking about one workaround to the TCJA’s $10,000 limit on the federal income tax deduction for state and local taxes (SALT). The preliminary notice hints at where the IRS may come down on state plans to convert partially-deductible taxes to fully deductible charitable gifts, but it may be months before it issues formal guidance. Steve notes that while the courts will give deference to the agency’s position, the notice is “likely only one step in what could be a protracted legal and political battle between some states and the IRS.”
Guns and Ammo Taxes: Will they hit the target? TPC’s Robert McClelland sets his sights on new taxes on guns and ammunition, and sees some problems. To start, very little is known about how gun purchasers respond to such taxes. And if they do respond, the tax could discourage the use of background checks. A tax on ammunition might reduce purchases somewhat, but the levy would fall mostly on high-volume users like target shooters.
How is the TCJA affecting investment incentives and financial reporting? By altering the taxation of business income, the TCJA will affect investment incentives, compensation policies, and the income firms report to their shareholders. Join TPC and the University of North Carolina Tax Center financial accounting experts and economists as they offer their perspectives. The event will be webcast live here on Wednesday, June 6 from 9am to 12am, or you can register to attend in person.
Congress will not be in session next week in honor of Memorial Day. The Daily Deduction will post Tuesday, May 29, and return to its normal schedule on June 4.
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