Harris’s proposed newborn tax credit could be worthwhile with sound administration. TPC’s Margot Crandall-Hollick examines a proposal by Democratic presidential nominee Kamala Harris. As part of permanent expansions to the Earned Income Tax Credit (EITC) and child tax credit (CTC)—similar to the temporary changes under the American Rescue Plan (ARP)—Harris has called for a larger CTC for families with newborns. Eligible parents could get up to $6,000 for their newborn, a $2,400 boost beyond the $3,600 ARP’s CTC for children under age six. TPC estimates the expansions and newborn credit boost would cost $105 billion in 2025, providing low-income families with children an additional $2,750 on average.
Can either presidential candidate fight inflation? It’s not likely. TPC’s Howard Gleckman reports on whether the plans offered up by Harris and Republican presidential nominee Donald Trump could help reduce inflation. Neither looks promising on paper, with a lack of proposals to reduce federal spending or raise taxes sufficiently to moderate demand and curb price increases.
Join TPC for an event on the Tax Cuts and Jobs Act of 2017: Lessons learned and the debate ahead. The TCJA expires at the end of next year, setting up a major tax debate after the election. If Congress takes no action, nearly all American households will see their taxes climb. On Thursday, Sept. 12, TPC and the Brookings Institution’s Hutchins Center on Fiscal and Monetary Policy will convene authors of five recent Journal of Economic Perspectives papers to discuss the impact of the TCJA on individuals, businesses, and investors headed into the 2025 debate. Join in person or online.
Nebraska high court says a manufacturer’s repatriation income does not qualify for state deduction. TaxNotes reports (paywall) on the Nebraska Supreme Court decision. The court ruled last week that Precision Castparts Corp.’s repatriation income did not qualify for the state’s deduction of “foreign dividends received.” Instead, the income was a “deemed inclusion,” not a “deemed dividend,” based on Internal Revenue Code Section 965 and Moore v. United States.
Colorado state lawmakers reach a property tax cut deal. Last week the state legislature concluded a special session with the passage of a bill that will save Coloradans hundreds of dollars a year in property taxes. The bipartisan deal calls for the removal of two ballot measures that would have made deeper tax cuts. A CBS News Colorado affiliate reports that the deal will save homeowners and small businesses about $1.6 billion a year.
Brazilian government proposes corporate income tax increases. The government submitted bills that would temporarily increase tax rates through the end of 2025. Banks would pay a 22 percent rate instead of the current 20 percent. Private insurance companies, capitalization firms and brokerages would pay 16 percent, up from 15 percent, while other companies’ tax rates would climb from 9 percent to 10 percent. Rates would return to current levels in January 2026.
The Daily Deduction will resume its regular schedule on Monday, Sept. 9.
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