Yellen confirmation today? The Senate could confirm Janet Yellen as Treasury Secretary as soon as today. While the chamber is mired in disputes over organization and former President Trump’s impeachment, Yellen is expected to win easy confirmation. She was unanimously approved by the Senate Finance Committee last week.
New executive order establishes Equitable Data Working Group, including tax data. President Biden signed an executive order last week that aims to advance racial equity and support for underserved communities. It establishes an Equitable Data Working Group that includes the yet-unnamed Assistant Secretary of the Treasury for Tax Policy. The group will identify inadequacies in federal data collection across agencies and work to improve those data to fully measure equity and capture the diversity of the US population.
Support for Biden’s proposed CTC expansion from Hill Democrats. Reps. Suzan DelBene and Rosa DeLauro want to reintroduce the American Family Act (AFA), which boosts the Child Tax Credit. The AFA tracks President Biden’s American Rescue Plan initiative that would provide an annual credit of $3,000 per child and $3,600 for children under 6. The plan also has backing among Democratic senators. The benefit would be paid monthly rather than once a year when families file taxes. The credit amount would phase out according to income.
CBPP: State, localities, tribal nations, and territories face budget shortfalls totaling $300 billion through fiscal year 2022. The Center on Budget and Policy Priorities wants the federal government to provide more aid to these subnational governments. Its estimate accounts only for revenue losses resulting from the pandemic, plus normal cost increases states face from factors such as wage inflation, population growth, and increased Medicaid costs.
Treasury must give former President Trump 72 hours notice before turning over his tax returns to House Democrats. Federal District Court Judge Trevor McFadden says his order for advance notice will last for two weeks. It remains uncertain how the Biden Administration will respond to House Ways & Means Chairman Richard Neal’s request for Trump’s returns. Attorneys on both sides must file a joint status report by February 3.
Tune in February 5: What do Americans think about taxes? TPC hosts a Noon Zoom event to consider the question. Americans’ views are as widely misunderstood as the tax code itself. How is public opinion changing, and how will these perceptions affect the ability of the US to pay and plan for its future? Syracuse University’s Christopher Faricy, Harvard University’s Stefanie Stantcheva, and Brookings Institution’s Vanessa Williamson will discuss these issues in a conversation moderated by TPC’s Howard Gleckman. Learn more and register here.
Will states and Congress update tax rules to fit a telecommuting workforce? ABC News looks at the dilemma facing local governments and telecommuting workers. Six states have convenience rules: People working from home because of the pandemic may owe income tax to the locality to which they used to commute. Seventeen states have reciprocity agreements with their neighboring states: They don’t tax their residents if they physically commute to work elsewhere. The problem: States and localities are battling to maximize revenue at a time when telework is booming.
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].
