Senate Republicans consider moving first on budget reconciliation.
The Hill reports that Senate Budget Committee Chair Lindsey Graham (R-SC.) will brief Republican senators on a budget resolution aimed at advancing two packages. The first would address border security, energy production, and defense spending. The plan could move forward before the House if needed; that chamber has yet to reach consensus on budget plan that covers those priorities and extending parts of the 2017 Tax Cuts and Jobs Act set to expire at the end of this year. The Senate’s second bill would serve as a vehicle for the tax cuts.
Ohio governor’s proposes child tax credit and higher sin taxes. Ohio Capital Journal reports that Gov. Mike DeWine’s (R) $218 billion budget would fully fund public education and introduce a $1,000 child tax credit. It would hike taxes on marijuana, tobacco, and sports betting to help fund those projects and a new Cleveland Browns stadium.
Texas lawmakers look for more property tax relief. The Texas Tribune reports that Texas policymakers are prioritizing another round of property tax cuts. Gov. Greg Abbott (R) wants to allocate $10 billion for further reductions. The state has recently spent billions on lowering tax bills, but rising property values have offset some of those savings. The state has a smaller budget surplus this year. The Senate’s proposal includes raising the homestead exemption from $100,000 to $140,000, while the House has yet to unveil its plan.
Georgia’s lieutenant governor pushes for expanded child care tax credits. The Associated Press reports that Georgia Lt. Gov. Burt Jones (R) is backing legislation to tax subsidies for child care costs. The proposal would create a new $250 per-child tax credit for children under seven, increase the child care tax credit to $1,200 per child, and expand incentives for businesses to provide on-site care. Democrats have proposed broadening the child tax credit further, but some legal opinions suggest the Georgia Constitution could prohibit such refundable credits. Jones’ plan could cost between $100 million and $200 million annually.
Maryland tests a mileage-based user fee to replace the gas tax. WMAR-2 News reports that Maryland is experimenting with a mileage-based user fee (MBUF) as fuel tax revenues decline. A pilot program found that participants paid roughly the same amount in mileage fees as they do in gas taxes, but concerns about privacy and fairness persist. Rural drivers, who tend to own less fuel-efficient vehicles, could see their tax burden decrease under an MBUF model. Some Republican lawmakers oppose the idea, concerned that Maryland might introduce the fee in addition to existing gas taxes.
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