Still no deal for coronavirus relief. Senate Republicans remain divided on unemployment insurance benefits. Meanwhile, Republican and Democratic negotiators continue to reach an overall agreement by, they hope, the end of this week, though some lawmakers are not optimistic about that timeline. Beyond coronavirus relief, The Wall Street Journal reports (paywall) on other provisions that may end up in the package, like a new FBI building, repeal of SALT tax caps, and financial access for marijuana businesses.
Business groups ask for tax deduction related to PPP loans. A group of over 170 trade associations wrote House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell urging that the next coronavirus relief bill include tax deductions for expenses associated with loan forgiveness under the Paycheck Protection Program (PPP). "As part of the next round of COVID19 relief, we request that Congress reaffirm its intent and restore the tax benefits it intended to give distressed Main Street businesses as part of the CARES Act,” the groups wrote. Signatories include the American Farm Bureau Federation, the American Institute of CPAs, the National Retail Federation, and the National Association of Home Builders.
Tune in to The Prescription tomorrow. TPC holds the next in its series of online conversations on policy responses to the COVID-19 economy. TPC’s guest will be Michael R. Strain (@MichaelRStrain), director of economic policy studies at the American Enterprise Institute. Strain will talk with Mark Mazur, the Robert C. Pozen director of the Urban-Brookings Tax Policy Center, about appropriate fiscal policy responses to the COVID-19 pandemic, interpreting apparently conflicting economic indicators, and the US economy’s short- and long-term prospects. Register here.
Will Nevada lift its cap on mining taxes? The state’s lawmakers have taken the first step toward that end by passing resolutions that propose changing certain taxation provisions in the Nevada Constitution. Currently, mining businesses cannot be taxed by more than five percent of their net proceeds. The Constitution could be amended no earlier than 2023 after legislative approval of a plan in 2021 and voter approval in 2022.
Texas’ sales tax revenues in July were better than expected. The state collected $2.98 billion in sales tax revenue last month, 4.3 percent more than it did in July 2019. The July 2020 revenue increase was due to a surge in retail trade collections. E-commerce collections “were up sharply,” said Texas Comptroller Glenn Hegar. He also warned sales tax revenues could turn for the worse after July, now that expanded unemployment insurance benefits related to federal coronavirus relief have expired.
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].
