SPSCI: IRS needs to conduct more oversight of its Free File partnership. Yesterday the Senate Permanent Subcommittee on Investigations released a bipartisan memo concluding that until recently, the IRS conducted little oversight of the tax-preparation companies that operated its Free File program. Subcommittee chairman Rob Portman and top Democrat Tom Carper said "the IRS should increase its oversight of [Free File Alliance] members and dedicate funding—including increased funding from Congress, if necessary—to market the Free File program.”
How should the federal government maximize the economic benefit of future stimulus? TPC’s Gene Steuerle proposes four ways government could boost the economy. It could: Make significant purchases to stimulate the economy, accelerate COVID-19 testing and vaccine production, direct more money toward households that would benefit the most, and remember that not every cause, no matter how worthy for other purposes, deserves equal attention as a response to our current health and economic crises.
A President’s budget reflects priorities. Gene Steuerle argues that President Trump’s most recent budget reveals misplaced priorities. Released in early 2020, his budget proposes almost no additional resources for workers, children, young and middle-age families, and most of the traditional functions of government.
Idaho Governor Brad Little proposes property tax relief . The Republican announced his plan to pay 103 percent of local government public safety salary costs if they agree to cut their own property taxes that they’d otherwise use to fund police, fire, and EMS. Little would use some of the $1.25 billion the state received from the latest federal coronavirus relief package.
Colorado state Democrats want to eliminate tax breaks, Democratic lawmakers would generate $278 million in annual revenue by undoing certain tax breaks enacted under the 2017 Tax Cuts and Jobs Act using money from the latest coronavirus relief package. They’d also cap net operating loss deductions for businesses, eliminate a capital gains provision that benefits the wealthiest 1 percent of filers, and remove a tax exemption for energy and industrial manufacturing companies. But Democratic Governor Jared Polis wants an across-the-board income tax cut—and that’s not included in the Democratic majority’s proposal.
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