Conflict continues in the GOP caucus. With government funding expiring in 12 days, divisions remain among House Republicans over their spending strategy. Some conservatives want additional spending concessions before agreeing to legislation to fund the government.

Also on Capitol Hill this week. The Senate Finance Committee will hold a hearing on Tuesday on aging in place and access to care. The Senate Budget Committee will hold a hearing on Wednesday on public investment and its impact on income inequality and economic growth. In the House, the Ways & Means Committee will hold a hearing on Tuesday to examine the implementation of patient protections contained in the No Surprises Act. The panel’s Subcommittee on Trade will hold a hearing on Wednesday on reforming the Generalized System of Preferences used with US imports from China. 

Arkansas Gov. Sarah Huckabee Sanders signs income tax cuts into law. The state legislature passed legislation to cut the state’s top income tax rate from 4.7 percent to 4.4 percent and lower the top corporate income tax rate from 5.1 percent to 4.8 percent. The rate reductions go into effect on Jan. 1, 2024. The law also creates a one-time nonrefundable tax credit of $150 this year for those earning up to $90,000.

Will Canada levy new taxes on grocery store chains? Prime Minister Justin Trudeau said last week that the government could impose new taxes on the retail businesses if they do not come up with a plan to limit the rise in food prices. The heads of the largest grocery chains are to provide a plan to the Canadian government by Oct. 9. 

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].