Congress agrees to fund the federal government through Dec. 20. Before leaving Washington through Election Day, the House and Senate passed a narrowly focused stopgap funding bill that will keep the federal government running, largely at current spending levels, for nearly three months. President Biden is expected to sign the measure before current funding expires on Oct. 1. Congress will return the week of November 11.
Sens. Shaheen and Baldwin propose permanent enhanced premium tax credits. Sens. Jeanne Shaheen (D-NH) and Tammy Baldwin (D-WI) introduced the Health Care Affordability Act to make permanent the expansion of premium tax credits (PTCs). PTCs were created under the Affordable Care Act for Health Insurance Marketplace coverage and were later expanded, temporarily, by the American Rescue Plan and the Inflation Reduction Act. The enhanced credits increased the value of the credits for people with income between 100 and 400 percent of the federal poverty level (FPL). They expanded eligibility to include individuals with income above 400 percent of FPL. These enhancements expire at the end of 2025.
Are luxury homes driving mansion tax revenue in Los Angeles? Measure ULA, a real property transfer tax of between 4 percent and 5.5 percent on properties that sell for more than $5.15 million, went into effect in April 2023. A report by the Los Angeles Office of Finance estimates that since then, about 46 percent of Measure ULA revenue has come from sales of single-family homes. The other 54 percent has come from the sale of other types of real estate, like offices and retail and apartment buildings.
Mississippi lawmakers want to phase out the state income tax, but... The Republican chair of the state’s House Ways and Means Committee, Rep. Trey Lamar, at an event this week, said the upcoming 2025 legislative session is the time to start phasing out the income tax. Republican State Sen. Jeremy England said “baby steps” might be needed to assure funds are available to pay for vital state services, while Chair of the state’s Senate Finance Committee. Sen. Josh Harkins also recommended taking time to see the results of previous tax cuts passed in 2022 and 2016.
Tuscaloosa voters reject a property tax increase for schools. The increase would have raised $17 million annually for Alabama’s Tuscaloosa City Schools. A tax bill for a $200,000 home would have climbed by about $230, opponents of the measure said. The school district says education costs have tripled since the last tax increase in 1986.
Congress is not in session. The Daily Deduction will post Mondays and resume its regular schedule on November 11.
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