Senate Republicans may offer an infrastructure counteroffer tomorrow. Senate Republicans plan a response to President Biden’s latest $1.7 trillion infrastructure offer. Mississippi Sen. Roger Wicker hinted the top line might be near $1 trillion but the sides are far apart on the elements of the spending and on how to pay for any of it. At the same time, a small bipartisan group of senators is trying to develop its own compromise that would include much of Biden’s traditional infrastructure but drop provisions that would support low-income families and home-based long-term care. Biden set an informal Memorial Day deadline to reach a deal. House Speaker Nancy Pelosi says she’s aiming to pass a bill by July 4 and Senate Majority Leader Chuck Schumer says the Senate will take up its version soon after.
The IRS child tax credit portal should allow families to update their bank information. TPC’s Elaine Maag congratulates the IRS for quickly building an online portal so families can claim their correct monthly Child Tax Credit payments, which begin July 15. But the portal may have no way for claimants to be sure they can receive the money. “The IRS needs to make sure… families can update their addresses and direct deposit information so they can get the money they deserve.”
The IRS budget battle heats up. Senator Elizabeth Warren introduced a bill to boost the agency’s budget to $31.5 billion, with sufficient “resources to go after wealthy tax cheats,” she said. But conservative groups have embarked on a public relations campaign against growing the IRS. They accuse the Biden Administration of using an IRS expansion to raise taxes, increase union dues, and increase oversight of political organizations.
Ten states’ pot taxes raised $3 billion in 2020. The Marijuana Policy Project’s finds the ten states with legal recreational marijuana collected $2.7 billion in taxes on pot products last year. Since 2014, when Washington State and Colorado legalized recreational pot, states have collected a total of $7.9 billion in related tax revenue.
Arizona is on track to slash revenues and boost spending. The Arizona House unveiled a $12.8 billion budget that permanently cuts state income taxes by 25 percent over three years. But several Republican members have concerns since Arizona still carries debt from the Great Recession. Said one GOP state senator, “It’s almost overwhelming, the amount of spending… And it’s not sustainable.” But she does not plan to oppose the budget.
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].
