Tax Refund

President Biden signed the temporary government spending bill late last week. Biden signed the short-term government funding bill on Thursday, after the Senate approved the House-passed measure designed by Speaker Mike Johnson (R-LA). Four federal agencies are funded through Jan. 19, 2024, and the rest are funded through Feb. 2, 2024. 

Maag and Steuerle: Avoiding a government shutdown is good, but children deserve more. TPC’s Elaine Maag and Eugene Steuerle argue that when Congress bypasses the regular budget process with continuing resolutions, it “allows policymakers to avoid tough decisions about which programs deserve more resources and which will get less. And when this happens, children are often among the biggest losers.”

Treasury and IRS released new regulations for investment tax credits (ITC). The proposed regulations update rules for the first time since 1987, defining the types of energy properties eligible for the credit and outlining requirements under the Inflation Reduction Act. Eligible properties now include updated definitions for solar, hydrogen fuel cells, wind, and microgrid resources.

Colorado lawmakers continue to spar over tax relief plans. They convened for a special legislative session on Friday. Democratic Gov. Jared Polis announced the special session after voters rejected a ballot initiative that would have provided property tax relief in exchange for smaller tax refunds. Republican lawmakers want nearly $1.24 billion in property tax relief, drawing on the state’s general fund and reserves to offset revenue losses for local governments and schools. Meanwhile, Democrats proposed nearly doubling the state’s earned income tax credit, as well as $30 million in rental assistance and $5 million for a summer school lunch program.

In the United Kingdom, maybe no tax cuts. Chancellor of the Exchequer Jeremy Hunt said yesterday that he would not call to cut taxes that could prompt higher inflation. Per Reuters, Hunt told Sky News that the governing party “want[s] to bring down the tax burden but we will only do so responsibly.” His major budget update is expected this week. 

The Daily Deduction will resume its regular schedule next week. Happy Thanksgiving.

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 *