Four more days ’til Friday--and another deadline. President Trump signed a short-term funding bill to keep the federal government open until this Friday Dec. 18. Lawmakers continue to try to reach agreement on a longer-term $1.4 trillion omnibus package that would keep the federal government running at least through March and perhaps through the fiscal year.
And stimulus? Both House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell say they’d like to attach a pandemic relief bill to the omnibus bill. Of course, reaching agreement on a relief deal would help. Sen. Bernie Sanders says he’ll block the Senate from even considering another government funding bill unless it includes another round of stimulus payments.
IRS releases the 2020 Form 1040. It still won’t fit on a postcard. In case you just can’t wait, here it is. Among the additions: A line for non-itemizers to deduct up to $300 in charitable donations, and a new question: “Did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
Will Oregon repeal state tax breaks? Governor Katie Brown and legislative leaders may hold a third special session to address the state’s eviction moratorium. The House Speaker also wants to repeal three tax breaks that will reduce revenue by $102.9 million this fiscal biennium, One is a $47.8 million provision that eliminates a $500,000 cap for joint filers ($250,000 for single filers) on deductions of business losses. Brown has not indicated whether she supports the repeals.
Bipartisan group of Iowa lawmakers opposes a sales tax hike. Governor Kim Reynolds wants to increase the rate from 5 percent to 6 percent. At her Condition of the State Address on January 12 she’s expected to promote the Invest in Iowa Act, which would raise the sales tax while cutting the state income tax and reducing property taxes.. She says the plan amounts to an overall tax reduction.
Alabama won’t tax the CARES Act’s Economic Impact Payments. Governor Kay Ivey signed an emergency proclamation on Friday that exempts payments of up to $1,200 for individuals and $2,400 for married couples from state income tax. The payments are already exempt from federal income tax. Likewise, businesses will not owe state income tax on benefits received under the Paycheck Protection Program. Ivey’s order also extends two business tax incentives.
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