On Capitol Hill next week. The House Budget Committee will hold a hearing on the US fiscal crisis on Wednesday, Dec. 11. Meanwhile, legislative leaders will continue negotiations on a stop-gap bill to continue funding the government after Dec. 20, perhaps through at least March 2025; a vote is expected soon.
Senator Lankford pushes to restore tax deductions for charitable giving. On Giving Tuesday, Sen. James Lankford (R-OK) renewed his push for the Charitable Act. The 2017 Tax Cuts and Jobs Act significantly reduced the number of itemizers, limiting the tax incentives for donations. The bipartisan bill proposes allowing deductions up to one-third of the standard deduction and providing additional support for nonprofits and religious organizations. Advocates argue that expanding this deduction could help reverse declining donation rates and bolster critical community services.
Utah Governor proposes eliminating state’s tax on Social Security benefits. Utah Governor Spencer Cox has proposed a $30.6 billion state budget for fiscal year 2026 that includes eliminating the state’s tax on Social Security benefits. If approved, Utah would become the 42nd state to remove this tax, according to Bankrate. The Utah State Tax Commission estimates the change would help 150,000 filers save an average of $950 annually while costing the state $143.8 million in revenue. Cox’s proposal faces legislative scrutiny as Utah lawmakers grapple with structural budget imbalances.
How much do fines and fees really fund local governments? TPC’s Aravind Boddupalli reveals that fines, fees, and forfeitures generated nearly $14 billion in 2022. That equates to just 0.3 percent of state and local general revenue, the lowest share of state and local revenues in 17 years. Despite their relatively small contribution to budgets, fines and fees often disproportionately burden underserved communities, prompting state and federal calls for reform.
Boston debates shifting property tax burden to commercial owners. Boston’s Democratic Mayor Michelle Wu continues to advocate for her property tax reform plan despite new property valuations that slightly reduce projected residential tax increases. Without the reform, residential taxpayers would face an average 10.5 percent hike in 2024, the highest since 2007. Wu’s proposal to shift a greater share of the tax burden onto commercial property owners would reduce the average hike to 5.2 percent. Opponents question the need for legislative action, citing the improved forecast, but Wu argues the potential increase is still unsustainable for Boston homeowners.
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