On the Hill. Tomorrow, the House Budget Committee will hear from Congressional Budget Office Director Phillip Swagel on the budget and economic outlook for 2020. In the Senate, Republican Sen. Joni Ernst of Iowa has introduced the Eliminating Leftover Expenses for Campaigns from Taxpayers (ELECT) Act of 2020 that would eliminate the presidential election campaign fund and use any remaining money to reduce the federal deficit. Taxpayers contribute to the fund by checking a box on their Form 1040. In 2018, only about 4 percent of filers participated.
Another Trump tariff threat. This time for a carbon tax. In an interview with the Financial Times, US Commerce Secretary Wilbur Ross warned the US would retaliate if European Union nations imposed a tax on carbon imports. Such a levy is a top priority of the European Commission. Ross said the effort was no different from digital taxes proposed or enacted by several European countries.
New York State lawmakers are bullish on legalizing marijuana this spring. The Wall Street Journal reports (paywall) the state legislature may legalize and tax recreational marijuana in the coming months, perhaps as part of the new state budget. Last week, Democratic Governor Andrew Cuomo included legalization in a spending bill and recent polling shows strong public support for legalization.
Also in New York State: Is a hedge fund manager’s $10 million tax bill double taxation? The state sent the bill for back taxes and interest to a Connecticut-based hedge fund manager who paid Connecticut taxes on the same income. New York officials determined that the manager, David Russekoff, is a “statutory resident’ of New York even though he lives in Connecticut. A New York administrative law judge ruled that Russekoff owes New York taxes on income earned in New York and Connecticut taxes on income earned in Connecticut—but owed taxes to both states on “intangible” investment income that is not linked to a specific place.
IRS seeks public comment on changes to forms. The agency requests public comment on its Form 1098-E, “Student Loan Interest Statement.” It also seeks public comment on Form 8316, “Information Regarding Request for Refund of Social Security Tax Erroneously Withheld on Wages Received by a Nonresident Alien.” Comments on either form are due by March 24, 2020.
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].
