Sen. Manchin opposes President Biden’s minimum tax on very wealthy households. He told Bloomberg that the wealthiest Americans shouldn't be taxed on "things you don't have… You might have it on paper. There are other ways for people to pay their fair share, and I think everyone should pay.” Unless a Republican unexpectedly supports the idea, Manchin’s opposition will sink Biden’s plan.
House passes retirement savings package. The House overwhelmingly passed a package of new retirement savings measures. It includes the so-called Secure 2.0 bill passed by the Ways & Means Committee last year. It would create new tax incentives for firms to set up opt-out retirement plans, raises the age for required minimum distributions from 72 to 75, and increases the amount of catch-up contributions for older workers to $10,000. A second piece of the package creates a database to help workers track plans they had in prior jobs and includes incentives for more part-time workers to participate in 401(k)-type plans. The Senate is considering a similar measure.
FTC sues to stop Intuit from advertising free tax filing. The Federal Trade Commission asked the US District Court for the Northern District of California to block Intuit, which owns TurboTax, from advertising free filing when it requires many users to pay. The FTC already has started an internal administrative proceeding on the issue, arguing that TurboTax ads deceptively stress its filing services are free when many are not. Intuit says it will fight the suit.
Thanks to a budget surplus, Maryland will cut taxes by $1.86 million. Gov. Larry Hogan and Democratic legislative leaders agreed to a deal to provide tax relief over five years. Residents age 65 and older who earn up to $100,000 ($150,000 for married couples)—80 percent of Maryland retirees—would get a non-refundable tax credit of up to $1,000. The agreement also includes a Work Opportunity Tax Credit to encourage employers to hire and retain workers from underserved communities as well as sales tax exemptions for diapers, dental hygiene products, and certain medical products.
Georgia senators may rewrite House-passed tax cuts. The House passed a $1.1 billion tax cut but the Senate Finance Committee wants to make some changes. It would reduce Georgia’s income tax rate to a flat 4.99 percent by 2032, lower than the 5.25 percent rate passed by the House. The Senate panel also would retain many deductions that the House bill would eliminate. However, the Senate committee bill would sharply reduce tax breaks for film and television production.
Will the Pennsylvania General Assembly agree to join the Regional Greenhouse Gas Initiative? The compact would implement a carbon tax on businesses to reduce CO2 emissions. Democratic Gov. Tom Wolf wants to join without approval from the GOP-controlled legislature, but Republicans on the House Environmental Resources & Energy Committee say he doesn’t have that authority. Democrats have conceded that Wolf will need legislative approval.
For more on state-level carbon pricing, tune in today at 1:30. The Brookings Institution and TPC will host an event to explore the role of state-level carbon pricing initiatives in US climate policy. After keynote remarks from Rajinder Sahota, deputy executive officer for climate change and research at the California Air Resources Board, a panel of climate policy experts will offer their perspectives. Learn more and register for the 1:30 EDT webcast here. .
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