Daily Deduction Biden’s Budget On The Way, State Gas Tax Holidays Begin

Renu Zaretsky
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Stay tuned… The White House plans to release President Biden’s fiscal year 2023 budget next Monday, March 28. TaxNotes reports (paywall) that the budget likely will propose another double-digit percentage increase for the IRS.

Gas taxes go on holiday in two states. Maryland and Georgia have temporarily suspended their gas taxes. Maryland Gov. Larry Hogan signed legislation that waives the 36.1-cent gasoline and 36.85 diesel tax for 30 days. Georgia Gov. Brian Kemp signed a bill that suspends his state’s 29-cent gasoline tax through the end of May.

There’s bipartisan support for restoring the charitable deduction for non-itemizers. Senate Finance Committee Chair Ron Wyden and Republican James Lankford both want to make it possible for everybody to deduct charitable donations from their taxable income. A tax provision that allows non-itemizers to deduct  donations of up to $300 ($600 for couples) expired at the end of last year. But Lankford sponsored a bill to restore the above-the-line deduction for 2022 and increase it to $4,000 for single filers and $8,000 for couples. While Wyden likes the concept of non-itemizers getting a deduction for charitable gifts, he has not signed on to Lankford’s bill.

Tune in Thursday to TPC’s Prescription with Adam Ozimek. The chief economist at the Economic Innovation Group will talk with TPC’s Howard Gleckman about the fast-growing trend of remote work and the new tax and economic development questions local policymakers need to consider as the economy evolves. Register here for the noontime conversation.

 

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