Crunch time. House Speaker Nancy Pelosi scheduled a vote on the Senate-passed bipartisan infrastructure bill for Thursday. And she told Democrats last night that they may have to wait to vote on the big domestic spending bill that is being considered through the reconciliation process. And she needs to figure out how to pass a continuing resolution to keep the government running through Friday. Oh, and there is the debt limit.
Senate Republicans sink the Democrats debt limit Plan A. As expected, the Senate GOP blocked debate on a bill to temporarily fund the government, provide relief to victims of recent natural disasters, and increase the federal government’s borrowing limit. Senate GOP leader Mitch McConnell said Republicans will oppose any legislation that extends the debt limit. Democrats are turning to Plan B.
President Biden is less confident that Congress can pass a continuing resolution this week... While getting his COVID-19 booster shot, the President said of a government funding deal to keep the government open on Friday, “It may not be by the end of the week. I hope it’s by the end of the week.”
Also Thursday: Tune in for TPC’s Prescription with guest Rohit Kumar. The former domestic policy director for Senate Republican Leader Mitch McConnell and co-leader of PriceWaterhouseCoopers’ Washington National Tax practice will discuss tax and budget policy with TPC’s Howard Gleckman. Register here for the Sept. 30 noon-time event.
Who’s child is it, anyway? TPC’s Janet Holtzblatt writes that the eligibility rules for the monthly Child Tax Credit (CTC) in the Ways and Means reconciliation bill are overly complex and in some cases impossible to measure. The bill would extend the CTC expansions in the American Rescue Plan through 2025 with some modifications—including changes to the definition of a child. Janet concludes “if the rules can’t be understood by taxpayers or administered by the IRS, or if the program is undermined by charges of improper payments, it will fail despite its best intentions.”
What will become of Maine’s income tax? If former GOP Governor Paul LePage is elected to a third non-consecutive term, he’ll call for its repeal. He wants to replace Democratic Governor Jan Mills, even though she left in place tax cuts LePage signed into law. Democrats attempted to reform the state income tax ten years ago but Republicans and Maine voters rejected it.
A big VAT rate increase in Bahrain? The island nation’s government is considering doubling its value added tax to 10 percent. Reuters reports the goal is to reduce its deficit.
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].
