Tax Refund

A September shutdown showdown? House Republicans have rejected the fiscal year 2023 spending cap set by Speaker Kevin McCarthy and President Biden in their debt limit deal, writing bills with caps set at fiscal year 2022 levels. But Senate appropriators plan to align their bills with the spending caps set by the McCarthy-Biden deal, set at fiscal year 2023 levels for two years. Stay tuned for another clash between the House and the Senate. 

In the meantime, Senate Finance Committee weighs stronger work requirements for the Child Tax Credit (CTC). The panel this week debated the merits of adding stronger work requirements for families using the CTC. While Democratic members touted the success of the expanded CTC at reducing child poverty, Republican members countered that research couldn’t be fully trusted, given only five months of data and the circumstances of the pandemic. 

Absent federal expansion of the CTC, more states opt to give cash benefits to families. Colorado has joined eight other states that in two years have supported a guaranteed cash benefit for its poorest parents. While smaller than the expanded federal CTC in place for 2021, state CTCs could test the idea that the government can give cash to families without discouraging a parent from working outside the home.

Some in Idaho are jonesin’ for pot tax revenue. The New York Times reports on the dilemma facing states like Idaho that have not legalized recreational marijuana. The state’s population is growing and property taxes have increased by 20 percent. In some towns, residents are tired of seeing marijuana tax dollars collected just down the road in Oregon, where recreational marijuana is legal. A poll for The Idaho Statesman found that 68 percent of residents back legalizing marijuana for medicinal purposes and 48 percent support the legalization of its recreational use. So far, Idaho Republican Gov. Brad Little opposes marijuana legalization.

“The IRS needs YOU.” TaxNotes reports (paywall) on the IRS’s latest recruiting strategy, touting patriotism in the service of taxpayers. “Twenty years ago… I would emphasize . . . the mission of the IRS, how cool it is, what we get to do, [and] the important role we have in finance and government,” said IRS Commissioner Danny Werfel. “[But] the center of gravity should be on their careers.” He explained the need to convince prospective IRS hires that three to five years at the IRS is a resume-builder and skill-developer providing unique opportunities.

Next Thursday, June 22: The 13th Annual IRS/TPC Joint Research Conference on Tax Administration. You can attend virtually or in-person the only annual conference focused exclusively on tax administration research. Researchers from the IRS, other government agencies, academia, and private organizations will discuss some of the latest analyses seeking to make tax administration as effective as possible.

Also next Thursday: TPC’s Prescription with Libin Zhang. The partner at Fried Frank will talk about how the growing popularity of artificial intelligence and tools like ChatGPT could impact tax policy and administration. Register and tune in here for the noontime discussion.


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 *