Schumer sets up a Senate vote for next week on a stop-gap funding bill. Lawmakers still are squabbling over the stopgap funding bill to keep the government open until mid-December. The biggest hang-up continues to be language to ease the permitting process for energy projects, a gift to Sen Joe Manchin in return for his support of the Inflation Reduction Act. But Republicans and some progressive Democrats still say they’ll oppose it. The deadline is Sept. 30. The shutdown saga, familiar and perennial, continues.
A lame duck tax deal? On yesterday’s episode of TPC’s webcast The Prescription, Rohit Kumar, a former top aide to Senate Republican leader Mitch McConnell, suggested Republicans might agree to partial restoration of last year’s expanded Child Tax Credit. Kumar said congressional Republicans won’t back full refundability of the CTC but might agree to increase benefits for low-income parents who work. The price: Democratic support for restoring expired business tax breaks. He said a post-election tax bill remains a long-shot.
Dark money lives to see another day. Senate Republicans blocked consideration of a bill requiring organizations that spend money on elections to disclose their big donors. Those donations can yield huge tax benefits, as TPC’s Steve Rosenthal explained.
Massachusetts House advances Boston real estate tax. The chamber gave initial approval to legislation allowing Boston to levy a new tax of up to 2 percent on real estate transactions exceeding $2 million—about 7 percent of the city’s real estate transactions. The revenue would support affordable housing. The city council and mayor approved the legislation in March. Several other cities also want the state to OK such a tax.
UK study: Truss tax cuts would make debt unsustainable. The United Kingdom’s Treasury has not published an economic forecast that reflects the government’s mini-budget released today. But the Institute for Fiscal Studies finds Britain will need to borrow £100 billion annually to offset tax cuts proposed by new Prime Minister Liz Truss. In March, the IFS projected the government would need to borrow £50 billion next year.
Remote work and international cross-border taxation: A closer look. Bloomberg Tax shares insights by Baker McKenzie’s Erik Christenson and Imke Gerdes. They dive into the intricate maze of tax rules affecting companies and employees who work remotely across countries. If not planned and monitored carefully, the tax ramifications of remote work can be severe.
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