Tax changes to overtime added to Trump’s list of ideas. Republican presidential nominee Donald Trump late last week proposed exempting overtime pay from income tax. This is in addition to his proposals to exempt tips and Social Security income from income tax. Democratic presidential nominee Kamala Harris generally agrees with Trump on tips, but would instead raise the corporate income and capital gains tax rates, while offering new tax credits and deductions for families and small businesses.
How do Americans feel about taxes on Social Security benefits? In a Wall Street Journal poll, 64 percent of respondents strongly favored the elimination of taxes on Social Security benefits. Support for the idea dropped when asked if they’d support the proposal if it increased the national debt.
On Capitol Hill this week. Tomorrow, the Senate Finance Committee will hold a hearing on the Inflation Reduction Act and its impact on health care costs. The House Ways & Means Subcommittee on Health on Wednesday will hold a hearing to examine the prevalence of chronic disease in America and investments in prevention and innovative treatment options. The panel’s Trade Subcommittee will hold a hearing Friday on US leadership in establishing and enforcing strong digital trade rules.
TIGTA: Flaws apparent in the corporate AMT rulemaking process. The Treasury Inspector General for Tax Administration (TIGTA) found that the Office of Chief Counsel did not adequately review and consider public comments on interim guidance for the corporate alternative minimum tax (AMT). The corporate AMT, established under the Inflation Reduction Act, is a 15 percent tax on large corporations’ financial statement, or “book,” income. TIGTA recommended that the Chief Counsel establish a written process to track all comment letters submitted prior to issuing rules or guidance. The IRS disagreed with this recommendation, responding that the office already has the necessary written guidance and procedures.
Michigan Supreme Court to consider Family Cottage Tax Cap. The state’s high court will consider a corporation’s appeal regarding the taxable value of a family cottage owned by the corporation, reports Bloomberg Tax (paywall). An appeals court ruled that the value of the property in question should be uncapped since more than half of the corporation’s ownership interest was cumulatively transferred within the same calendar year. The corporation says the ownership interest was less than half.
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