Daily Deduction House Passes Biden’s Pandemic Relief Bill
Renu Zaretsky
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The American Rescue Plan (ARP) Act heads to President Biden for his signature. Biden plans to sign the bill into law tomorrow afternoon.  By a near party-line vote of 220-211, the House approved  one of the largest economic relief packages in US history. The $1.9 trillion package cuts taxes by nearly $500 billion this year and includes $1,400 relief payments, and an expansion of several refundable tax credits for low- and moderate-income households. 

Sen. Wyden: Stimulus payments should not be seized by debt collectors. The Senate Finance Committee Chairman plans to introduce legislation to prevent the direct payments from being seized by private debt collectors. His bill was not allowed under budget reconciliation rules  so Wyden will try to get is passed some other way. 

Delay the tax filing deadline? Not so fast, says The Federation of State Tax Administrators, a group that represents, yes, state tax officials. They say pushing the April 15 deadline back “is a complex, time-consuming and expensive proposal for a tax agency, whether the IRS or a state agency, as well as for tax return software developers and others who make up the return filing community.” They say it would be easier for those caught up in some of the changes in the pandemic relief bill to file for extensions.  Many tax preparers, accountants, and key members of Congress have urged the Treasury and IRS to extend filing season. 

Are state and local tax systems colorblind? TPC’s Aravind Boddupalli and Kim Rueben review the evidence and say “no." Their new brief examines the impact of state and local revenue systems on racial disparities. Some states with large Black populations that rely on regressive taxes have more apparent racial disparities. These disparities are narrower in states that rely more on progressive income taxes and property taxes. 

Senate panels advance Young nomination for OMB deputy director. Senate committees on Budget, and Homeland Security and Governmental Affairs each advanced Shalanda Young, President Biden’s nominee for deputy director of the Office of Management and Budget,. The  administration has not yet named a nominee for OMB director. His first choice, Neera Tanden, withdrew her name in the face of Senate opposition.

And later today on the Hill. The House Ways & Means Committee Select Revenue Measures Subcommittee will hold a hearing on tax tools to help local governments. 

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