Revised messaging on extending the TCJA? Roll Call reports that changing politics and growing debt has prompted House Republicans in charge of reviewing Tax Cuts and Jobs Act (TCJA) to reconsider their message. Making the temporary portions permanent has been a long-standing goal, but now many Republican lawmakers say permanence for the entire package is not a foregone conclusion.
IRS offers clarifications on certain early withdrawals of retirement savings. The recently enacted SECURE 2.0 aims to expand and increase retirement savings and simplify retirement plan rules. Related to the law, IRS Notice 2024-55 outlines the definitions of both emergency personal expense and domestic abuse victim exceptions from the additional 10 percent tax on early retirement plan withdrawals. It also clarifies plan eligibility to allow the distributions, how often the distributions can be taken, and certification guidelines to determine distribution eligibility .
California Supreme Court nixes ballot measure on state taxation. Over a million California voters signed a petition for a November ballot measure that would have required (1) voter approval of any tax increase passed by the California legislature, and (2) two-thirds of voters to approve local tax increases. The measure could have retroactively reversed most tax increases passed since Jan. 1, 2022, including a guns and ammunition tax set to take effect July 1. Democratic Gov. Gavin Newsom and legislative leaders asked California’s high court to remove the measure, and the court agreed, noting it would take away the Legislature’s power to raise taxes and “fundamentally rework the fiscal underpinnings of our government at every level.”
This week on Capitol Hill. The House Ways & Means Committee will hold a hearing on Wednesday on the reauthorization of the Title IV-B program, which serves children and youth in foster care.
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