Democrats are getting closer but still not quite there. Democrats appear to have dropped paid family and medical leave from their compromise Build Back Better bill as they continue to narrow differences between progressives and moderates. Liberals still insist they won’t vote for a bipartisan infrastructure bill until they see legislative language on BBB. But Speaker Nancy Pelosi is pushing for a public works vote first—this week. Rep. Jim McGovern, chairman of the Rules Committee, said an infrastructure vote this week is "still a possibility."
Sen. Manchin balks at the billionaire tax, prefers a “patriotic tax.” The West Virginia Democrat raised concerns yesterday over Senate Finance Committee Chairman Ron Wyden’s plan to impose a market-to-market tax on capital gains of those with a net worth of $1 billion or annual income of $100 million. He suggests an alternative “Patriotic Tax,” where the very wealthy pay a 15 percent levy if they have “zero tax liability.”
Still in the mix: A corporate minimum tax. Lawmakers continue to work through complex issues raised by the levy on book income, but it appears to have the backing of Sen. Kyrsten Sinema, one of the key Democratic critics of other tax increases including increases in the corporate income tax rate.
SALT cap games: Bad policy, badly designed. TPC’s Howard Gleckman argues that a temporary repeal of the federal cap on the state and local tax (SALT) deduction is both bad and poorly designed policy. Some Blue State lawmakers would temporarily repeal the cap in a manner that makes a tax windfall for a relatively small number of high-income people look like a revenue raiser. Howard warns that it’s irresponsible policy and concludes Congress has better ways to revise the SALT cap.
Speaking of fiscal policy: Tune in to today’s Prescription with Bill Hoagland. The senior vice president at the Bipartisan Policy Center, fiscal expert, and longtime Senate staffer will discuss the ongoing talks over Build Back Better as well as the political dynamics of today’s Senate. Register and tune in here.
Is Michigan about to end its “tampon tax?” The state senate voted this week to end the sales tax on menstrual products after the House did the same. Democratic Governor Gretchen Whitmer supports repealing the sales tax on menstrual products and is expected to sign the measure into law. Twenty other states have either repealed the tax or never had one.
Will Denver voters lower their sales tax rate? Next Tuesday, city voters will decide whether to approve Ballot Measure 304 that would reduce the city’s combined sales tax rate from 4.81 percent to 4.5 percent and cap it at that level. Local, state, and special sales taxes have pushed the city’s combined rate to 8.81 percent. City officials estimate the rate cut would reduce fiscal 2022 revenue by $49 million. Spending on discretionary services and voter-approved programs including preschool, college affordability, mental health services, and parks might be trimmed.
Former President Trump’s attorneys are still trying to keep his tax returns private. The former president’s attorneys urged a federal judge to block Treasury from giving Trump’s tax returns to the House Ways & Means Committee. They say panel chair Richard Neal only wants to find something “embarrassing” about Trump. US District Court Judge Trevor McFadden has scheduled a Nov. 16 hearing.
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].
