Manchin’s inflation concerns may deflate hopes for BBB in 2021. President Joe Biden yesterday met with Sen. Joe Manchin to urge his support for passing Build Back Better (BBB) this year. But Manchin continues to raise concerns about inflation and the cost of BBB. Data released Friday show inflation at a nearly 40-year high. But TPC’s Ben Page and other analysts say the bill would have little impact on either inflation or short-term economic growth.
More on the SFC-proposed Build Back Better payfors. Why didn’t the Senate Finance Committee tax proposal include earlier, bolder provisions? TPC’s Steve Rosenthal says that ambitious components of the House plan such as the billionaires tax needed more development. As for the proposals that were included, the tax credit for union-made electric vehicles is among them. Sen. Manchin continues to object.
Will Atlantic City casinos fail without tax breaks? Some New Jersey lawmakers hope to enact tax breaks for the city’s gambling establishments. Union officials say thousands of workers could lose their jobs without them, though they provided no evidence. The measure would allow casinos to make payments in lieu of property taxes to Atlantic City, Atlantic County, and the city’s school system. And it would exempt internet gambling and sports betting from certain taxable revenue. Atlantic City’s casino profits and revenues rebounded strongly this year from pandemic-driven declines in 2020.
French appeals court: UBS to pay $2 billion for helping its wealthy clients evade taxes. The court upheld a guilty verdict by a French criminal court but reduced the $5 billion penalty imposed on UBS Group AG. Attorneys for the Swiss bank have not yet announced whether they’ll appeal to France’s highest court.
Reminder from the IRS in the season of giving: Non-itemizers can deduct some charitable contributions. Tax filers taking the standard deduction still can claim a modest deduction in tax year 2021 for charitable donations. Joint filers can claim up to $600 and married couples filing separate returns can claim up to $300 each for cash contributions made to qualifying charities.
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].
