Online, always: IRS hackers. They made off with data from 104,000 US taxpayers. IRS Commissioner John Koskinen said yesterday that the data were used to file 13,000 fraudulent returns in 2015 and might be used to file fraudulent tax returns next year too. Treasury Inspector General Russell George reiterated his suggestion that the IRS strengthen its data protection efforts. The IRS says it needs more money. Meanwhile, Tax Analysts reports that in mid-June, the IRS, state revenue departments, and tax return preparation software providers will share their framework for better ways to verify taxpayer identities and uncover patterns of refund fraud.
TaxVox hacked, too. TaxVox is back up and running after being hacked on Sunday afternoon. In case you missed them, read TPC’s Len Burman’s post on the fair tax and Howard Gleckman’s posts on never-ending tax-extenders and early withdrawals from retirement accounts.
In Michigan, a committee has a plan to eliminate the state’s Earned Income Tax Credit to pay for roads. Getting rid of the tax benefit for low-income working families in Michigan would free $117 million a year for road repairs and maintenance. The Republican-led Roads and Economic Development Committee is likely to approve the bill today.
How big will income tax cuts be in Ohio? A full budget vote comes on June 17, and the Ohio Senate leadership wants about $500 million more in income tax cuts than the $1.2 billion passed by the House. The Senate GOP wants to cut all income tax rates by about 10 percent, reducing the top bracket to 4.75 percent. To pay for it, the Senate would raise the cigarette tax by 50 cents per pack and could consider a sales tax increase of .25 percent.
Still no budget deal in Pennsylvania. The state’s GOP-controlled House defeated Democratic Governor Tom Wolf’s budget. GOP leaders wanted to highlight Wolf’s tax increases. Democrats wanted to focus on his budget priorities. Wolf and the GOP-controlled legislature need a budget deal before the next fiscal year begins on July 1.
On the Hill: A repeal, CBO oversight, and the ACA. The House Ways & Means Committee voted yesterday to repeal the medical device excise tax. Today, the House Budget Committee will hold an oversight hearing on the Congressional Budget Office. The Joint Economic Committee will have a hearing on "Examining the Employment Effects of the Affordable Care Act."
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