Watch for the proposal in tonight’s State of the Union address. A White House factsheet released yesterday confirmed that President Joe Biden will use his State of the Union speech to call for a minimum tax on billionaires, similar to the one his administration proposed in its prior year’s budget plan. Biden will also propose raising the rate on the recently enacted tax on stock buybacks and expanding the child tax credit.
Yellen: Inflation may decline “significantly,” but the debt ceiling looms. Treasury Secretary Janet Yellen said she sees inflation easing “significantly,” telling Good Morning America, “You don’t have a recession when you have 500,000 jobs and the lowest unemployment rate in more than 50 years.” But she again warned the economy could fall into a recession if lawmakers do not address the debt limit.
More types of vehicles qualify for the EV tax credit. Treasury and the IRS have revised their definition of qualifying vehicles, using the Environmental Protection Agency’s fuel economy labeling standard to determine whether a vehicle is a car, a sport utility vehicle, or another type of vehicle. This standard replaces its corporate average fuel economy standard. Higher-priced crossover vehicles will now be eligible for the $7,500 credit.
Crypto exchange Binance to release tax reporting tool. According to the exchange, Binance Tax will allow its users to download a tax summary report, including gains or losses in their Binance account, including transactions, spot trades, crypto donations, and blockchain-based fork rewards. Binance created the tool in response to inquiries from its users about tax liabilities.
Gov. Gretchen Whitmer and Democratic legislative leaders announce tax cut plan. The Lowering MI Costs plan would repeal the tax on retirement income, increase the Working Families Tax Credit, and provide inflation relief payments of $180 to each Michigan tax filer. If the legislation passes, changes will be retroactive, affecting taxpayers this year. Democrats won majorities in both legislative chambers in November.
Connecticut Gov. Ned Lamont announces plan to cut the state income tax. The governor noted the rate had not been reduced in nearly 30 years. He proposes that Connecticut’s 5 percent tax rate drop to 4.5 percent and its 3 percent rate drop to 2 percent starting in the 2024 tax year. According to administration officials, the average Connecticut worker would save up to $600 a year.
And Oklahoma Gov. Kevin Stitt again sets tax cuts as a top priority for the new legislative session. Last year Gov. Stitt urged lawmakers to eliminate the state’s sales tax on groceries and reduce individual and corporate income tax rates, to no avail. The plans will appear again in budget negotiations for this year.
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