The Senate has until midnight to decide whether to keep the government open. Senate Democrats and several Senate Republicans may block passage of the four-week spending bill passed by the House last night. Will the Senate agree to a bill that gives them another few days to make a long-term deal? Or will the government shut down? In case of a government shutdown: The Committee for a Responsible Federal Budget has a handy guide to what it will mean.
Tune in today to make sense of tax legislation. TPC and the Kellogg Public-Private Initiative of Evanston, Illinois hosts “@Issue: Making Sense of Tax Legislation: What Happened and What’s Next.” TPC’s Mark Mazur and Adam Looney join Marc Sumerlin and Ben Harris to discuss the implications of the Tax Cuts and Jobs Act for the US economy and speculate on what’s to come. The event will be webcast live here from 1:15 to 2:15 pm Eastern Standard Time.
Next Wednesday: TPC considers what the TCJA means for states. The new tax law is creating many fiscal challenges for the states. To explain how they may respond, TPC’s Howard Gleckman will moderate a discussion with John Hicks of the National Association of State Budget Officers, Laura Wheeler of Georgia State University, and Kim Rueben of TPC’s State and Local Finance Initiative. You can register to attend here, or watch the live webcast starting at 9:00 am on Wednesday, January 24.
“A little knowledge is a dangerous thing. So is a lot.” TPC’s Howard Gleckman considers the downmarketing of tax shelters. Under the TCJA, everybody’s looking for a tax loopholes. “Middle-income taxpayers are emulating big multinational corporations—through they are doing so without the proper tax planning advice,” explains Gleckman. Something is very wrong “when middle-income households are scrambling to minimize the tax liability by doing things they half-understand.”
Will this be the year for a gas tax increase? US Chamber of Commerce president Tom Donohue, usually a predictable opponent of all tax hikes, has called for 25-cent-per gallon increase to the federal gasoline tax over the next five years. The money would rebuild federal infrastructure. Wouldn’t there be political fallout? “Well, nobody’s for a gas tax, except the American people,” he said. Meanwhile, Governing considers states that are moving toward taxing miles driven rather than gasoline used.
It’s hard out there for a marijuana business owner—and the federal fisc. Marijuana business owners in states that have legalized marijuana sales will owe an estimated $2.8 billion in federal taxes this year, according to New Frontier Data. But because those sales are not legal under federal law, those taxes cannot be paid through banking services. Instead, cash is king, and record-keeping could be optional. As a result, the federal government could be missing out on billions of dollars in tax revenue.
Two tax-writers walk into an election… The Ohio senate race will be a face off between incumbent Sherrod Brown and Rep. Jim Renacci. Senator Brown, a member of the Senate Finance Committee, vigorously opposed the TCJA, while Rep. Renacci helped develop the bill. Will they both campaign on the effects of the law?
If you’d like to tell us about a new research paper or have any comments about the Daily Deduction, TPC’s summary of the day’s tax news, write Renu Zaretsky at [email protected]. You can sign up here to receive the Daily Deduction as an email newsletter every weekday morning (Mondays only when Congress is in recess) at 8:00 am.
