The IRS is thinking big about its $80 billion. But how? TPC’s Janet Holtzblatt reviews the IRS plan to invest the ten-year $80 billion boost to its budget provided under the Inflation Reduction Act. And today at noon, TPC hosts the Don Lubick Symposium exploring how that plan might be executed. The hybrid event on the IRS’s plan features Treasury Deputy Secretary Wally Adeyemo, former IRS Commissioner Charles Rossotti, and a host of other tax experts.
It's still unclear how the IRS will increase audits while sticking to President Biden's $400,000 tax pledge. In The Wall Street Journal, columnist Josh Zumbrun explores how upper-income households could use that threshold to evade taxes. "People might think it’s very clear who is and who isn’t high net worth," said Natasha Sarin, a law professor at Yale University and former Treasury official who will be speaking at TPC's Monday event. “The whole point of tax evasion is people with high net worth are doing a lot of maneuvering and accounting tricks to look like they’re not.”
House Republicans’ Main Street Caucus shares its debt ceiling priorities. The 70-member group provided Speaker Kevin McCarthy a list of proposals, including a clawback of billions of dollars in coronavirus funding, resuming federal student loan repayments, and returning non-defense discretionary spending to 2022 levels. The Main Street Caucus also wants to limit the growth of non-defense discretionary spending at 1.5 percent annually and boost work requirements for the Supplemental Nutrition Assistance Program. It also wants a bipartisan panel to propose solutions that increase the sustainability of Medicare and Social Security.
Texas House advances a $12 billion property tax relief plan. The bill would allocate $12 billion to Texas school districts to help reduce their property taxes. It includes a controversial provision that would lower the appraisal cap from 10 percent to 5 percent, limiting how much a home’s taxable value can climb each year.
Massachusetts House approves $654 million tax relief package. The plan raises the state’s estate tax threshold from $1 million to $2 million. It would result in $1.1 billion in savings for taxpayers in the 2026 fiscal year. The bill also changes a 1986 law that limits state tax revenue growth and returns any excess to taxpayers. Currently, taxpayers receive a credit based on personal income tax liability on a proportional basis; the bill would make the credit equal for each taxpayer.
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