A new Democratic priority: Competing with China. Still searching for political wins, House Democrats will push this week for a bill aimed at helping US manufacturers compete with China. The measure includes $52 billion to subsidize US semiconductor production. The Senate passed a similar bill this year.
Virginia House panel OKs a tax rebate but not partial EITC refundability. Virginia’s GOP-controlled House of Delegates’ finance subcommittee approved $1.2 billion in one-time rebates of $300 for individual ($600 for joint filers) yesterday. The panel refused to advance a Democratic proposal to make 15 percent of the state’s earned income tax credit (EITC) refundable to low-income families.
Illinois Gov. Pritzker proposes “Family Relief Plan.” In tomorrow’s budget address, Gov. J.B. Pritzker will announce a $1 billion tax relief package designed to mitigate the impact of inflation. It would suspend the 1 percent grocery tax for a year, delay the automatic inflation-adjusted increase in the motor fuels tax, and provide a 5 percent property tax rebate to qualifying owners.
IRS says ignore its notices about unreceived 2020 tax returns. Fearing more annoyed taxpayers and piles of additional mail, the IRS told people to ignore a spate of recent CP80 notices demanding they refile their 2020 Form 1040s. In many cases, the IRS cashed balance due checks but somehow has no record of the returns being filed. The agency stopped sending the notices last week and now says if you filed a 2020 return last year “do not refile,” even if you got a notice.
UAE will tax corporate profits. United Arab Emirates, the Gulf state that includes Dubai and Abu Dhabi, is the region’s second largest economy thanks in part to its status a tax haven. But beginning June 1, 2023, to help meet “international standards for tax transparency” it will levy a new 9 percent tax on corporate profits that exceed about $102,000, excluding state-owned oil firms. The Wall Street Journal reports (paywall) the revenue is supposed to support small businesses and startups.
The Pope shares his thoughts on taxes and tax collectors. Pope Francis told Italy’s tax collection agency that its efforts are a “guarantee of equality” that helps the common good. Acknowledging that not everybody loves the taxman, he said that taxation administered properly “is a sign of legality and justice.” In Italy, avoiding taxes is said to be a sport nearly as popular as soccer.
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