More North American trade talks. Politico reports that Canadian Prime Minister Justin Trudeau will meet this week with US House and Senate leadership and with President Trump. He wants to get a read on when Congress will vote on a new North American trade deal. Meanwhile, hundreds of companies will testify before the Office of the US Trade Representative against President Trump’s proposal to expand tariffs on $300 billion in Chinese goods.
McConnell may force a vote on the border wall next week. Senate Majority Leader Mitch McConnell plans to hold a vote on Trump's $4.5 billion emergency request for border money. He says he’ll bring up the “freestanding” proposal whether or not the GOP reaches a deal with Senate Democrats. McConnell told Fox News that he’ll “see if they really aren't interested in dealing with this massive humanity that we have to take care of at the border.” The Appropriations Committee plans to mark up the request on Thursday.
The SECURE Act falls far short of its goal, says TPC’s Gene Steuerle. Steuerle explains that the bill only tinkers with pension law, does little to reduce complexity, and largely helps those with higher incomes.
Brookings looks at a bipartisan carbon tax. Tomorrow at 9 am, Senator Chris Coons (D-Del.) and Rep. Francis Rooney (R-Fla) will discuss bipartisan plans for a carbon pricing measure. They’ll talk about how the tax would be structured and what they’d do with the revenue. Register here.
Ways & Means delays its hearings on the TCJA and non-profits. It was supposed to be held tomorrow, but has been put off until fall. A staffer told Politico that the hearing was cancelled because members would be busy with appropriations bills that are on the House floor.
For California EITC, maybe go along to get along. Democratic Governor Gavin Newsom wants to increase the number of households eligible for the state’s Earned Income Tax Credit by 1 million and triple state spending on the program to $1.2 billion. But to pay for the initiative, California will need to conform to business provisions of the Tax Cuts and Jobs Act, The step would raise an additional $1.8 billion, according to the California Department of Finance. But some legislators are balking.
Pennsylvania House bill would give breweries an end run around a sales tax. Last year the state’s Department of Revenue issued rules requiring breweries without a brewpub or restaurant license to collect a sales tax on the retail price beer they sell in a tap room. That would be four times as much as the 6 percent levy on the wholesale price of beer consumers pay at a restaurant or bar. A House bill would allow breweries to charge a sales tax on the wholesale equivalent price of beer sold in a taproom.
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].
