Pelosi isn’t buying a gas tax holiday. She told reporters yesterday she might support a rebate or direct payment to consumers but a gas tax holiday is a no-go. She called it “very showbiz” but identified multiple downsides: “So we’re losing the money in the Highway Trust Fund. It goes to the oil companies. You cannot write a law that requires them to pass it on. That’s just the way that is. We’ve tried every which way.”
Biden’s alternatives. The White House has not flatly rejected a federal gas tax holiday but President Biden is announcing multiple alternative ways to lower prices. He is releasing 1 million barrels of oil a day from the Strategic Petroleum Reserve and he’s asked Congress to tax oil companies that do not use federal drilling leases they previously acquired. “It’s not the time to sit on record profits. It’s time to step up for the good of your country,” Biden told the producers.
Russian entities and individuals on Treasury’s blacklist. The Biden Administration has placed dozens of individuals and entities working to evade Western sanctions in response to the Russian invasion of Ukraine. The Treasury designations freeze any property or interests held by sanctioned individuals in the US and bar financial transactions with those on the blacklist.
West Virginia lawmakers still want gas tax relief. Democrats are calling on Gov. Jim Justice to establish a gas tax holiday and are developing two options for a special legislative session later this year. The options: A statewide gas tax cut or a rebate equal to a months’ worth of gas for each of 571,000 registered vehicle owners.
Nebraska lawmakers advance a tax cut. They gave initial approval to a plan that would cut the top personal and corporate income tax rates, create a tax credit for property owners, and phase out more quickly the state tax on Social Security benefits. Some lawmakers call the plan a giveaway to high income-earners and out-of-state corporations that likely would do business in Nebraska without the tax cuts.
Iowa lawmakers want to extend a sales tax holiday. Iowans enjoy a sales tax holiday the first Friday and Saturday of every August on items including clothing and school supplies. The legislature may extend the holiday through Sunday. It also may add emergency preparedness material including generators, batteries, duct tape, and tarps to the list of items that Iowans can purchase tax-free.
A wealth tax in the City of Brotherly Love? City Councilmember Kendra Brooks is reintroducing a “Philly Wealth Tax.” She first introduced the plan in 2020 but it never got a hearing. She’s pushing a 0.4 percent tax on “intangible personal property” including stocks, bonds, mutual funds, and exchange-traded funds. Tax-qualified retirement accounts would be exempt. She may get a hearing this time, but it’s not clear she has broad support for the measure.
An excise tax on residential rentals in California? An assemblyman has proposed an annual $500 excise tax on all residential rental units in California. The Franchise Tax Board would be required to report annually on the number of businesses that have paid the tax. Revenues would help fund affordable housing.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
