Tax Refund


The House has votes this week, but not on a CR to fund the government. Over the weekend, the House Rules Committee adopted a rule allowing floor debate on Defense, Homeland Security, Agriculture, and State-Foreign Operation appropriations bills. Roll Call reports that Republicans are considering—but have not released details or a schedule for action—a continuing resolution (CR) that would extend the length of the stopgap funding measure from one month to six weeks, while authorizing less total spending, and adding border security legislation and a fiscal commission to examine long-term deficit reduction measures.

Also on the Hill this week: Confirmation hearing for IRS Chief Counsel nominee. Marjorie Rollinson will testify before the Senate Finance Committee on Thursday, Sept. 28. Rollinson served in the IRS Office of Chief Counsel during the Obama and Trump administrations. She became Associate Chief Counsel (International) in 2016. In 2019, she returned to the private sector at E&Y and recently retired. 

Budget commissions can make deficit reduction harder. There are two purposes to congressional commissions: 1) to provide political cover for lawmakers who want to achieve a goal but are afraid to act without an external push, or 2) to provide an excuse for politicians to duck crucial policy decisions. In either case, TPC’s Howard Gleckman concludes that for Congress, “ignoring commission recommendations becomes routine, and most everyone forgets what they were about anyway.”

New York State lawmakers push for expansion of direct tax filing. A state senator and assemblyman wrote New York’s Department of Taxation and Finance, recommending collaboration between the state and IRS to create an online direct tax filing system for New York State taxpayers. “A direct file system, run by a trusted state agency that already has requisite filer information, can ensure that tax benefits reach those who need them most while saving taxpayers time and money,” they wrote. 

A tax relief deal in Massachusetts? State House and Senate Democrats have reached a deal on a tax relief bill and plan to send it to Gov. Maura Healey (D) this week. When legislators broke for summer recess in July, they allotted $581 million to cover tax relief impacts for fiscal year 2024. The final tax relief deal could exceed $1 billion in later years. No details on the actual compromise are yet available. 

Maybe an inheritance tax cut in the United Kingdom? Prime Minister Rishi Sunak is working on plans to cut the UK’s inheritance tax. The levy is currently 40 percent on estates worth more than £325,000, with an exemption of £175,000 for a main residence if passed to children or grandchildren. Sunak’s plan would lead to an eventual repeal of the levy, reported The Sunday Times. 

 

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 *