The Bidens released their 2021 tax returns. The President and Vice President released their 2021 tax returns last week. President Biden and Jill Biden earned $610,702 in 2021 and paid an effective federal income tax rate of 24.6 percent. Vice President Kamala Harris and husband Doug Emhoff paid an effective rate of 31.6 percent on income of $1,655,563.
Are taxes complicated? Compared to what? TPC’s Bill Gale counters the familiar narrative: Our income taxes are too complex. It is true, Bill says, but there’s at least one good reason. “The income tax provides ‘one stop’ shopping that enables people to receive, in one fell swoop, the benefits of numerous social policies and economic incentives. Including these programs in the tax code complicates tax filing but simplifies people’s interactions with government.”
Biden’s budget would globalize cryptocurrency compliance. The president’s budget attempts to close a reporting gap for overseas exchanges of cryptocurrencies with a two-pronged approach built on the Foreign Account Tax Compliance Act. TPC’s John Buhl examines whether the US is ready to tackle compliance by foreign exchanges and account holders before it develops complete reporting rules for US-based firms. Imposing strict FATCA compliance on individuals before fully implementing other rules could prove problematic.
Kansas Gov. Laura Kelly signs more tax relief into law. Last week the Republican governor signed a bill that increases the residential property tax exemption, prorates some personal property taxes, and offers some homeowners property tax refunds. The new law has bipartisan support.
Tune in Thursday for your TPC Prescription with Atif Mian. Does the US have the fiscal space to avoid higher taxes or spending cuts? Can it run a “free lunch” fiscal policy? Princeton University economics professor Atif Mian will discuss his new research on whether the US can rely on low interest rates and economic growth to manage its debt. Register and tune in here for the noontime discussion on April 21.
Next Monday: TPC’s Lubick Symposium will focus on what the US can learn from tax reform in developing nations. The April 25 event will be held in memory of Don Lubick, who helped emerging nations develop and improve their tax systems. Ambassador Stuart Eizenstat and Phil West will discuss Don Lubick’s work. They will be followed by a panel of Mary Baine of the African Tax Administration Forum, Victoria Perry of Oxford University, and Artur Swistak of the International Monetary Fund. TPC’s Howard Gleckman will moderate. Learn more and register for the virtual event here.
Congress is not in session. The Daily Deduction will post Mondays until it reconvenes.
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