OECD’s Pillar 1 will have to wait until 2023. The overhaul of global tax rules broadly agreed to last year by nearly 140 counties and promised by now, will now not be complete until the first half of next year. The plan would create a uniform system for countries to collect corporate tax on profits from sales in their jurisdictions. The delay by the Organization for Economic Cooperation and Development could complicate consideration of the proposal in the US since Congress may be controlled by Republicans in 2023.
TPC’s Matheson: One strong global minimum tax is better than two weak ones. As budget negotiations continue on the Hill, Democrats reportedly are considering watering down their proposed alternative minimum tax on global income of large corporations and their reforms of the global intangible low-income (GILTI). But TPC’s Thornton Matheson argues that, instead, Democrats should adopt a single global minimum tax, the Pillar 2 being proposed by the OECD.
CBPP: Family Security Act 2.0 would benefit some families but others would be worse off. Republican Senator Mitt Romney and two colleagues proposed legislation to give families with up to six children monthly payments of $350 per child up to age 5 and $250 for older children. But families earning less than $10,000 would see their credit reduced proportionately. In a new analysis, the Center on Budget and Policy Priorities found the plan would increase benefits for millions of children but many low- and moderate-income families would be worse off, in part because the new benefits would be offset by a large cut in the Earned Income Tax Credit.
ProPublica: The Family Research Council is a “church” says the IRS. In March 2020, the Family Research Council (FRC) applied to change its status to an “association of churches.” The IRS approved the request a few months later, according to ProPublica. As a result, the FRC no longer has to file a Form 990 disclosure and the IRS will only be able to initiate an audit if a high-level Treasury Department official approves it. The FRC describes itself on its website as a nonprofit research and educational organization.
Massachusetts lawmakers propose $500 million in tax cuts. Legislative leaders plan to use some of the state’s $1 billion budget surplus for tax relief, including an expanded tax break for seniors who own their homes, an increased state earned income tax credit, an expanded child and dependent care tax credit, and more rent-based tax relief for tenants.
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