Turning tax increases into tax cuts? TPC’s Howard Gleckman tracks the journey. President Biden and congressional Democrats once placed trillions of dollars in tax increases on corporations and high-income households at the top of their legislative agenda. But Howard reports, “They’ve been replaced by, of all things, talk of billions of dollars of tax cuts for corporations and high-income households.” They include some new retirement savings tax breaks and restoration of expensing for corporate research costs.
IRS gets kudos for its distribution of stimulus payments. The Treasury Inspector General for Tax Administration reports the agency correctly distributed 99.48 percent of 175 million advance recovery rebate tax credits through September 16, 2021. TIGTA did find that the IRS issued more than 1.2 million payments totaling $1.9 billion to “potentially ineligible individuals.”
More states make paying at the pump less painful. Maryland Gov. Larry Hogan says his state should extend its 30-day 37-cent gas tax suspension beyond April 16; Comptroller Peter Franchot, who is running to replace Hogan, suggests an additional 60 days. Connecticut lawmakers voted to suspend their state’s 25-cent excise tax on gas for three months. And California Gov. Gavin Newsom wants to issue proposedgiving residents $400 debit cards for each resident’s registered vehicle to help cover higher gas costs and provide free public transportation for three months. The debit cards would cost about $9 billion.
Gov. Lee of Tennessee proposes grocery tax holiday. He’d suspend state and local grocery taxes for a month. He’ll include the proposal in a budget amendment for the 2022-2023 fiscal year to be delivered on March 29. Tennessee shoppers pay a 4 percent tax on their groceries.
Next Wednesday, March 30: Can state-level carbon pricing help achieve national climate goals? The Center on Regulation and Markets at Brookings and TPC will host an event to explore the role of state-level carbon pricing initiatives in US climate policy. After keynote remarks from Rajinder Sahota, deputy executive officer for climate change and research at the California Air Resources Board, a panel of climate policy experts will offer perspectives on the issue. Register here.
Trump still trying to keep his tax returns from the House Ways & Means Committee. Former President Trump’s attorneys are arguing their case at the DC court of appeals. Ways & Means’ attorneys assert the panel has the power to obtain Trump’s tax records from the IRS, while Trump’s lawyers claim the panel’s request is political. The judges seemed divided, saying it is possible the committee has both legitimate legislative reasons and illegitimate political motivations for wanting the tax returns.
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].
