A government shutdown, at least for weekend, seems increasingly likely. Congress needs to act quickly to avoid a shutdown tomorrow night. But roadblocks keep appearing. Some Senate Republicans insist they’ll block any continuing resolution that includes funding to enforce vaccine mandates—a non-starter for Democrats. And the two parties are at odds over the length of a temporary spending bill: Democrats want it to run into January. Republicans want to retain current funding levels through the fiscal year. Cumbersome Senate rules almost guarantee a shutdown, at least into the weekend.
Will the expanded child tax credit stay in the Build Back Better Act? Sen. Joe Manchin says “it's a work in progress” and did not commit to approving the House’s proposed one year extension of the expanded tax credit. Manchin previously said a work requirement should be a condition for receiving the credit.
Could tax incentives help recruit and retain public school teachers? The Tax Hound considers the question. The “Great Resignation” appears to have reached her home state of Michigan’s public education workforce, along with much of the country’s. The situation has grown so dire that schools are closing or educating children remotely for days at a time, not due to the pandemic-related health risks but because of staffing shortages. But tax incentives may not be the answer.
Opportunity Zones under the microscope. Brookings senior fellow and former Wall Street Journal tax reporter David Wessel’s new book “Only The Rich Can Play” takes a close look at how Sean Parker, once head of Napster and Facebook, convinced Congress to enact Opportunity Zones. Parker’s dream: a new way to boost economic development in low- income communities. The reality: A giant tax break for wealthy investors and little help for struggling neighborhoods. TPC’s Howard Gleckman reviews the book here.
Arkansas state lawmakers to consider tax cuts next week. Governor Asa Hutchinson called a special legislative session to approve a proposal to reduce the state's top income tax rate from 5.9 percent to 4.9 percent. The package also includes corporate tax cuts and a low-income tax credit. The measure would reduce state revenue by $135 million in the current fiscal year and nearly $498 million by 2026.
Wyoming lawmakers move to use some severance tax revenue for infrastructure. A bill approved by the state’s Transportation Highways and Military Affairs Committee would divert 1 percent of severance tax revenues to build and repair state roads and community colleges. The levy currently supports the Permanent Mineral Trust Fund.
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