No more US tax benefits for Russian oligarchs? Senate Finance Committee Chair Ron Wyden proposed eliminating tax benefits for sanctioned Russians doing business in the United States. His measure would eliminate US tax credits and deductions for taxes paid to Russia and cancel lower withholding tax rates on dividends and interest for Russians and Belarusians listed by the Treasury Department’s Office of Foreign Asset Control.
Suspending most favored nation status for Russia. President Biden said he and the Group of Seven nations and the European Union have agreed to lift “Permanent Normal Trade Relations” with Russia. It would allow the US and other countries to impose new tariffs on Russian goods they import. Speaker Nancy Pelosi says the House will vote on the bill this week. The measure is likely to have bipartisan support. Since the US already has barred most Russian imports, the impact of the move is unclear.
A tax on top US oil producers and importers? Democratic lawmakers proposed a 50 percent tax on the price difference between the current cost of oil and the average cost between 2015 and 2019. At $120 per barrel, the tax would raise an estimated $45 billion annually. The lawmakers say the measure would curb profiteering and fund taxpayer rebates—$240 for a single filer earning less than $75,000 annually and $360 for joint filers earning less than $150,000 a year. Rep. Ro Khanna introduced the bill with about a dozen Democratic senators and two other Democratic House members. TPC’s Thornton Matheson told The Wall Street Journal (paywall) that while the proposal could raise energy prices, some families still could be better off with the annual payments.
Thursday on the Hill. The Senate Finance Committee holds a hearing on charitable giving. TPC’s Gene Steuerle will be among the witnesses. The Senate Banking Committee holds a hearing on the role of digital assets in illicit finance. IRS Commissioner Rettig will testify before the House Ways and Means Oversight Subcommittee on the 2022 filing season.
Are current Hill tax hikes enough to fund a scaled-back climate and social spending bill? TPC’s John Buhl doesn’t think so. He explains that while proposed tax increases could raise substantial money, complexity and uncertainty render them less-than-perfect revenue raisers for new spending or deficit reduction.https://khanna.house.gov/media/press-releases/release-gasoline-prices-sky-high-khanna-whitehouse-announce-curb-big-oil
Probably no gas tax holiday in Michigan. The GOP-led House passed legislation to suspend the state’s 27-cent gasoline tax, and the Senate likely will pass it this week. But Gov. Gretchen Whitmer prefers to repeal taxes on some retirement income and increase Michigan’s Earned Income Tax Credit. Does that mean she’ll veto gas tax holiday legislation? “It won't have lived up to any of those things I just said,” she answered. “So you can draw your own conclusions.”
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