The White House debates itself over coronavirus relief. White House trade adviser Peter Navarro is promoting a $2 trillion package that focuses on boosting US-based manufacturing. Treasury Secretary Steven Mnuchin told reporters late last week that it was premature to speculate on the size of the relief package and said the Trump administration was amenable to another round of relief payments to Americans. And National Economic Council director Larry Kudlow said yesterday that the $600 CARES Act weekly unemployment benefit is a disincentive to work ,and he wants it to end in July. He told CNN that the White House is considering other incentives, including smaller checks.

Will there be another budget stand off? The Hill reports that Senate Republicans are concerned about the possibility. Congress needs to pass 12 appropriations bills or its usual temporary catch-all government funding bill before the next fiscal year starts on October 1. The House Appropriations Committee is set to mark up its versions of the individual spending bills during the weeks of July 6 and July 18. Some in the Senate favor legislation to prevent government shutdowns … but not all. Stay tuned.

Will California proceed with its gasoline tax increase? The levy is set to increase by 3.2 cents to 50.5 cents per gallon and raise an estimated $440 million. The increase, pegged to inflation, would be the third in the last four years. Some lawmakers want to delay or cancel the tax hike because of the financial burden of the coronavirus recession, but the move is not backed by Democratic Governor Gavin Newsom. The Democratic-controlled state legislature must approve such a move but has no plan to hold such a vote.

Colorado lawmakers edge closer to a $180 million—not $1 billion—tax hike. The lawmakers may be closing in on a deal to undo some tax cuts for corporations and high-income households. The move would raise $180 million through fiscal year 2022-2023 to fund schools and give tax credits to lower-income workers. The plan would limit the state’s qualified business income deduction for "pass-through" business owners earning more than $500,000, ( $1 million for joint filers). The deduction tracks the federal provision that was included in the 2017 Tax Cuts and Jobs Act. Gov. Jared Polis opposed an earlier bill that would have raised over $1 billion over several years. Polis is expected to sign the $180 million tax hike.

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].