Senate likely to confirm Werfel as IRS Commissioner. Senate Finance Committee Republicans say that Daniel Werfel is likely to be confirmed by the Senate, but the IRS will face tough oversight as it uses $80 billion in new funding from the Inflation Reduction Act.
Untouchable spending, with no help from tax revenue. The Congressional Budget Office estimates the national debt will grow by $19 trillion over the next decade under current law. That’s $3 trillion more than it projected last May. Why? TPC’s Howard Gleckman points to the programs that Congress and President Biden seem unwilling or unable to cut: Social Security, Medicare, the military, and interest payments. “Lawmakers say they want to reduce the deficit. But the CBO report shows both how daunting the challenge is and how narrow their target for achieving that goal is.”
Speaking of the debt and Social Security. The federal government is on track to hit its debt limit as soon as July, according to the CBO, or sooner if income tax receipts in April fall short of estimated amounts. Meanwhile, Social Security’s trust funds will run out of reserves in 2032, a year earlier than previously expected. “The Social Security solvency date — the exhaustion date for the trust fund — is now within the [ten-year CBO] budget window,” CBO Director Phillip Swagel said.
Wisconsin appellate court: Catholic Charities and some sub-entities are not exempt from state unemployment taxes. Tax Notes reports (paywall) on the Wisconsin Court of Appeal ruling that these nonprofit organizations did not qualify for the Wisconsin Unemployment Compensation Act’s religious purposes exemption. The sub-entities provide services to individuals with developmental and mental health disabilities, regardless of the recipients’ religion. Neither employees nor program participants are required to attend religious training or engage in devotional exercises.
The Daily Deduction will next publish on Tuesday, Feb. 21, in observance of Presidents’ Day. It will resume its regular schedule on Monday, Feb. 27, when Congress returns to session.
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 research or other news. Email Renu Zaretsky at [email protected].