More calls for targeted tax breaks. Republican presidential nominee Donald Trump has called for full tax deductibility of car loan interest He also called for ending the US taxation of Americans living abroad. Trump further proposed doubling the deduction businesses can claim when they buy items like equipment, vehicles, and software. (Read more about the both presidential candidates’ tax plans here.)
Next Monday: Tax Policy, the 2024 Election, and a Look Ahead to 2025. Join TPC on Oct. 21 for a conversation about tax policy in the 2024 electionand what it means for the upcoming year. The event will feature two panels of experts. The first, with Kimberly Clausing, UCLA School of Law, Day Manoli, Georgetown University, and Kyle Pomerleau, American Enterprise Institute, will discuss proposals and issues that have been raised throughout the campaign. The second, with Sage Eastman, Mehlman Consulting, and Arshi Siddiqui, Akin, will focus on what the election means for legislation in 2025. Register for the virtual afternoon event here.
IRS projection: Tax gap in 2022 grew to $696 billion. The gap is the difference between projected “true” tax liability and the amount of tax paid on time. The new projection is an increase of $200 billion over tax years 2014-2016. The projection also reflects the time period before the IRS began increasing tax compliance work following passage of the Inflation Reduction Act (IRA) in August of 2022.
French government unveils spending cuts and tax hikes. The plan calls for $45.1 billion in spending cuts to social security and state and local governments and $21.1 billion in tax increases on businesses, the wealthy, and energy. Finance Minister Antoine Armand said, “The French economy is holding up, but our public debt is colossal. It would be both cynical and fatal not to see it, say it, and recognize it.”
Congress is not in session. The Daily Deduction will be published twice weekly until Congress returns on Nov. 12.
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