Spending bill talks will need to speed up. Funding for the federal government expires on Friday. The White House requested an additional $32.5 billion in emergency funds to respond to Russia’s invasion of Ukraine and the continuing COVID-19 pandemic. However, a group of Senate Republicans warns it may slow down consideration of a package. Absent a spending deal soon, another continuing resolution is likely.
IRS will hire 10,000 new workers over two years. The Washington Post reports the agency is looking to hire staff ranging from clerical workers to tech experts. Some new staffers will help work through the agency’s backlog of past year tax returns, while some will upgrade its antiquated IT systems. The agency hopes to find ways to pay competitive salaries.
Online Child Tax Credit tool now on hold. The White House promoted the tool to help families who are not required to file annual tax returns claim billions of dollars in Child Tax Credit payments. But the administration concluded that because the portal could also be used by tax filers, it would add to an already chaotic tax filing season.
Speaking of tax filing season: Tune in Thursday for TPC’s Prescription with Erin Collins. The National Taxpayer Advocate joins TPC’s Howard Gleckman to discuss the current filing season and her office's recommendations to Congress to improve tax administration. Tune in here Thursday at noon.
Congress should do more than block tax-exempt bonds for just pro sports stadiums. TPC’s Howard Gleckman argues that blocking Virginia’s efforts to subsidize a stadium and mixed-use commercial development is misguided and short-sighted. Instead, Congress should look beyond professional sports venues and completely rethink private activity bonds.
Colorado income tax changes would disproportionately benefit the rich. Legislative Council Staff, which provides nonpartisan research, estimates a House Republican bill to reduce the state income tax rate from 4.55 percent to 4.4 percent would give 58 percent of the savings to households with incomes above $150,000. They make up 13 percent of Colorado’s taxpayers. The 17 percent of taxpaying households that earn between $15,000 and $29,999 annually would receive 1.8 percent of the tax savings.
Virginia renews its sales tax exemption for gold bullion and rare coins. The exemption went into effect in 2015 but is set to expire this year. Gov. Glenn Youngkin signed a bill to extend the sales and use tax exemption for sales of $1,000 or more of gold, silver, platinum bullion, and legal tender coins for another three years.
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