Sen. Wyden challenges the Joint Committee on Taxation’s figures on what the ultra-wealthy pay in taxes. Earlier this week, JCT estimated that the top 0.01 percent of taxpayers paid an average federal tax rate of 34 percent in 2019. Per Politico (paywall), Senate Finance Committee Chair Ron Wyden (D-OR) called out the JCT numbers for ignoring the “buy-borrow-die” technique the wealthy use to avoid realizing capital gains. His criticism came during a hearing on the 2025 tax debate as large portions of the Tax Cuts and Jobs Act are set to expire.
Treasury proposes rules for corporate alternative minimum tax. The Internal Revenue Service today proposed regulations to provide guidance on the Corporate Alternative Minimum Tax (CAMT). The Inflation Reduction Act established the CAMT, a 15 percent minimum tax on the “book” income of large corporations for taxable years beginning after Dec. 31, 2022. Treasury’s regulations would help determine if a corporation is subject to the CAMT and set rules for members of a foreign-parented multinational group. The tax is expected to affect about 100 large companies and generate $250 billion in revenue over 10 years.
No funding patch yet for the federal government. With the budget deadline of October 1 approaching, Speaker of the House Mike Johnson (R-LA) had to pull a vote on legislation that would have kept federal agencies and programs funded for six months. A point of contention is language requiring that people registering to vote provide proof of citizenship.
House Republicans vote to curb EV tax credit eligibility. The bill would further limit which automobiles are eligible for the electric vehicle tax credit by adjusting the definition of a “foreign entity of concern.” House Republicans said the bill would assure tax credits don’t benefit foreign adversaries, but the Biden administration has argued the legislation would add “new, unclear, and unworkable restrictions” to the tax credit. .
IRS worker pleads guilty to accepting bribes and faces up to 15 years in prison. A supervisory engineer working for the IRS accepted about $123,000 in bribes, some of which were extorted, from subcontractors procuring and continuing work on IRS projects. The former IRS worker agreed to fully repay his victims in his plea agreement, TaxNotes reports (paywall)
Republican Gov. Jim Justice is willing to cut West Virginia’s spending to offset a personal income tax cut. In his weekly briefing, he said he’d consider cutting current state spending levels to pay for an additional 5 percent cut to the personal income tax, but only if lawmakers present a proposal during their upcoming special legislative session. Justice has not released specific plans on how to achieve his desired 5 percent tax cut, which could return $115 million to taxpayers.
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 tax research or other news. Email Renu Zaretsky.
