Omnibus spending bill is in the final stages. Negotiators say the massive package is “98 percent there.” The House will try to vote on the fiscal 2022 omnibus spending bill today before Democrats leave for a two-day retreat. Its fate in the Senate remains less clear. The bill is likely to include about $14 billion in aid to Ukraine, more than the White House initially requested, but about $15.6 billion in pandemic assistance, much less than what President Biden wanted. Retirement savings legislation may also find its way onto the bill.
Bringing back WIN buttons? Hill Democrats appear to be recasting the now-defunct Build Back Better social spending, climate, and tax bill as a measure to fight inflation. In a letter to colleagues yesterday, Senate Majority Leader Chuck Schumer described a possible new initiative “to lower the rising cost of energy, prescription drugs, and health care, and the costs of raising a family….Democrats are focused on delivering on our promise to fight these rising costs.” He didn’t say if Democrats would pass out those Whip Inflation Now buttons that were popular in the Ford Administration.
California county lawmaker proposes a one-year suspension of the state’s gas tax. Republican San Diego County Supervisor Jim Desmond urged the Board of Supervisors to “step up” and impose the holiday even though he acknowledges high fuel prices are “a short-term problem” and that energy independence is a federal issue. He suggests the state cover the loss of gas tax revenue with 15 percent of its projected budget surplus.
Rhode Island lawmaker wants to suspend its gas tax through 2022. Sen. Jessica de la Cruz argues it’s not a partisan issue. The 34-cent-per-gallon tax funds $120 million in transportation projects annually. She says the revenue loss could be covered by the state surplus and federal infrastructure funds.
New York Gov. Holchul: Will a state gas tax suspension really help? She’s skeptical despite the ongoing chatter about gas tax holidays. Her view: “We don't have any guarantee that if you suspend a 10-cent per gallon tax on gas that it's actually going to result in lower taxes,” because the price of gasoline itself will continue to climb. State gas tax revenues fund road and bridge repair.
A majority of Iowans support a personal flat tax, but not corporate tax cuts. Gov. Kim Reynolds signed the tax cuts, which will take effect in 2026. The latest Des Moines Register/Mediacom Iowa Poll finds that 54 percent of adults support the new flat personal income tax rate of 3.9 percent. But even if the state hits revenue growth targets, 53 percent oppose cuts to corporate tax rates.
Thai government relaxes tax rules for digital asset investments. The government aims to promote and develop the industry, given the growth of cryptocurrency trading. The rules will allow traders to use losses to offset capital gains when calculating taxes on cryptocurrency investments. They’d also exempt cryptocurrency trading on authorized exchanges from a 7 percent value-added tax.
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