Inflation woes further cloud budget reconciliation progress, among other things. Sen. Joe Manchin called the 9.1 percent jump in prices over the past year a “clear and present danger” to the economy. That may make budget reconciliation negotiations even more fragile. The Fed is likely to raise interest rates by at least 0.75 percent later this month and many economists fear a recession may follow.
Senate Democrats may go it alone on spending bills, for now. With no progress on a bipartisan spending package for the fiscal year that begins in two and a half months, Senate Democrats say they’ll roll out their own plan by the end of July. The House hopes to pass all of its appropriations by then as well.
Tune in today at noon for TPC’s Prescription with Barbara Angus. Congress and the European Union have been unable to agree on global corporate tax rules drafted by the Organization for Economic and Cooperative Development. Former House Ways & Means Chief Tax Counsel Barbara Angus will shed light on how the changes may affect US corporations. Register here, and then watch live at 12:00 Eastern here.
Pennsylvania’s budget includes a long-sought cut in the corporate tax rate. The state’s corporate tax rate has been one of the highest in the country at 9.99 percent. Last week, Gov. Tom Wolf signed a $45.2 billion state budget that cuts that rate to 8.99 percent this year and by another 0.5 percent every year until 2031, landing at 4.99 percent.
Coming July 25: An SLFI panel on how states are navigating volatile times. TPC's State and Local Finance Initiative will host a virtual discussion on state budgets in fiscal year 2023. While some states are collecting higher revenues than expected, many face economic headwinds and fiscal challenges. In a discussion moderated by journalist Liz Farmer, TPC’s Lucy Dadayan, Shelby Kerns of the National Association of State Budget Officers, and Mark Zandi of Moody’s Analytics will discuss the states’ budget outlook. Learn more and register here.
The IRS is hiring hundreds of revenue agents. The agency seeks 470 revenue agents to examine individual and business taxpayers for the Small Business Self Employed Division. Among other duties, they will be responsible for identifying fraud and abusive tax shelters.
Kazakhstan raises taxes on crypto miners. President Kassym-Jomart Tokayev signed a tax increase on crypto miners. The tax will be based on electricity costs of extracting digital currencies like bitcoin. It will range between $0.002 and $0.053 per kilowatt-hour, with crypto farms that use renewable electricity paying the lowest rate. The government aims to reduce the burden on the country’s power grid by discouraging use of domestically produced electricity for crypto mining.
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].