Out like a lamb? House Ways & Means Chairman Kevin Brady released a 297-page bill late Monday that would extend expiring (or expired) tax breaks for, among other things, fuel cell cars, energy efficient homes, race horses, mine safety equipment, and auto race tracks. It also includes new incentives for retirement savings as well as “time-sensitive technical corrections” to the 2017 Tax Cuts and Jobs Act. Many of the retirement provisions already have passed the House; this bill will win approval there in the lame duck session as well. But how will the GOP muster the needed 60 votes in the Senate before the year ends?
“Congress can and should demand President Trump’s tax returns.” TPC’s Steve Rosenthal makes that argument, explaining that the Constitution expects the House and Senate to “enact legislation and to oversee whether those laws are faithfully executed." The House should fulfill its oversight responsibility by demanding the president’s tax returns. It’s had the power to do so since 1924, though for the past half-century (until Trump) presidents have voluntarily made their tax returns public.
How did the TCJA reduce the value of the Child and Dependent Care Tax Credit? TPC’s Elaine Maag explains that while the 2017 law didn’t directly change CDCTC rules, it did indirectly lower the credit’s value for many low- and moderate-income families because of changes to the Child Tax Credit. “The majority of families still are better off under the TCJA than they would have been under the old tax law. But low- and moderate-income families with child care expenses have lost benefits they used to be able to use to offset child care costs, while high-income families continue to receive similar tax benefits to offset their child care costs.”
Due December 3: Paper proposals for the 9th Annual IRS-TPC Joint Research Conference on Tax Administration. Researchers from the US and abroad are invited to submit proposals for conference papers on topics such as measuring and influencing taxpayer compliance, estimating taxpayer compliance costs, tax complexity, improving tax administration, and understanding the nature and behavior taxpayers. Click here for the formal call for papers. For more information about IRS research conferences, including links to previous conference programs and papers, click here. The conference will be held on June 20, 2019. Proposals are due by close of business next Monday, December 3, 2018.
Pennsylvania is increasing the price of craft beer. The state will levy a new tax on malt and brewed beverage manufacturers who sell beer out of their own establishments—also known as craft breweries. The businesses likely will pass the increased cost onto beer drinkers once the tax goes into effect in the new year. Cheers!
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.
