Tax Refund


Funding hopes spring eternal. President Biden and Senate and House leadership expressed confidence the federal government will remain open after Friday. After meeting yesterday, Senate Majority Leader Chuck Schumer (D-NY) told reporters he did not believe current differences on domestic spending levels were insurmountable. But another continuing resolution will likely be required.   

The revenue impact of IRA investments in IRS enforcement capacity might be bigger than we think. Natasha Sarin of Yale and Mark Mazur, former director of TPC, both worked at Treasury at the start of the Biden administration on IRS funding issues and the Inflation Reduction Act (IRA). In their latest TaxNotes special report, they calculate how much new tax revenue the IRA funding for the IRS will likely generate over the next decade. They estimate a much higher return on investment— at least $560 billion in new tax revenue over the first decade—than official scorekeepers. 

Gov. Phil Murphy wants tax relief in New Jersey. The Democratic governor announced in his budget address a $3.5 billion in tax relief plan for the fiscal year that starts July 1. Property tax relief and expansions of the state’s earned income and child tax credits are part of his plan. The budget would also fund RetireReady NJ, a state-sponsored retirement savings plan for private sector employees. 

Oklahoma Gov. Kevin Stitt signs repeal of state’s grocery sales tax. The state Senate voted last week to pass the House bill that eliminates Oklahoma’s 4.5 percent tax on groceries. The Republican governor signed the measure into law; it will go into effect in August. The average Oklahoma family will save $648 a year. 

Sports betting wins big, tax-revenue-wise, in Massachusetts. The state collected nearly double the tax revenue it expected in its first year of sports betting. Sportsbooks reported over $542 million in taxable revenue between Feb. 2023 and Feb. 2024. Massachusetts collected $108 million during that period, 98 percent of which came from online sports books that launched in March 2023. 

 

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].

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *