The IRS is processing returns a bit faster than last year. The IRS reports it has processed 63.2 million individual income tax returns as of March 10, 2 percent more than this time last year. Tax professionals filed 30.2 million returns electronically (an increase of 3.1 percent). The number of taxpayers filing on their own electronically is down 2.5 percent. So far, 49.2 million taxpayers have received refunds, with an average refund of $2,972.
On Capitol Hill this week. On Wednesday, the Senate Finance Committee will hear from US Department of Health and Human Services Secretary Xavier Beccera on the department’s budget request. US Trade Representative Katherine Tai will sit before the Senate panel on Thursday and then the House Ways & Means Committee on Friday. Also Thursday, the House Budget Committee will hear from Office of Management and Budget Director Shalanda Young.
In New York State, a push for higher tax rates on the wealthy. State Democrats have shied away from much of Democratic Gov. Kathy Hochul’s budget plan. Her proposal to build more housing upstate and on Long Island drew criticism. Instead, Democratic lawmakers have introduced a plan that, among other provisions, would increase the state’s personal income tax rate until 2027 from 10.3 percent to 10.8 percent for filers earning more than $5 million and from 10.9 percent to 11.4 percent for filers earning more than $25 million. Hochul opposes the increase. The budget is due to be finalized by March 31.
Illinois Gov. J.B. Pritzker and lawmakers consider tax cuts. Tax cuts are on the table as lawmakers consider what to do with increased revenue estimates of $1 billion in the current and upcoming budget years combined. The Democratic governor did not specify whether tax cuts would be permanent or which tax reductions were under consideration.
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