Tune in at noon today for TPC’s Prescription with John Koskinen. The former IRS commissioner will discuss how the IRS should spend the $80 billion in new funding it will receive through the Inflation Reduction Act, including challenges with increasing staff and improving technology. One issue: Will the IRS set up its own free electronic tax filing system? Register and tune in here today.

Amid the energy crisis, European Union plans for windfall taxes and more. European Commission President Ursula von Der Oeyen has a five-point plan to address energy shortages caused by the Russian closure of the Nord Stream 1 pipeline, climate change, and the effects of the COVID-19 pandemic. She calls for windfall taxes on energy sector profits, as well as mandatory electricity savings and a cap on Russian gas prices.

In Detroit, Treasury Secretary Janet Yellen will vow to end US dependence on fossil fuels. In a speech to be delivered today in Detroit, Yellen will say new clean energy tax credits enacted under the Inflation Reduction Act will help support US energy security and insulate the country from future fossil fuel-driven energy volatility.

Is it time to trade the Educator Expense Deduction for something better? TPC’s Tax Hound reviews the 20-year-old tax benefit available to teachers and others in education. The above-the-line deduction climbs from $250 to $300 for single filers in tax year 2022. But is it worth it? The Tax Hound says no. With a growing national teacher shortage and tougher working conditions, policymakers ought to trade it for something better. The inefficient deduction is too small and regressive; teachers deserve more.

Indiana will tax student debt relief. The state’s Department of Revenue told The Associated Press that Indiana residents must include forgiven loans as taxable income on their state tax returns. Indiana taxes personal income at 3.23 percent, so loan forgiveness of $10,000 could  result in another $323 in taxes.

Study: There’s a soda tax substitution effect in Philadelphia. New research examines the city’s 2017 tax on sugar-sweetened beverages. The authors found that demand for those drinks fell by 31 percent, consistent with previous research. But consumers purchased other sweetened foods or traveled to surrounding towns that did not tax sugar-sweetened beverages to buy candy, cookies, and sodas. 

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].