Tax Refund

The Speaker race grows while the government funding bill remains a question. Nine Republican contenders for House Speaker made their pitches behind closed doors last night. Some House Republicans worry that Congress could end up with another trillion-dollar omnibus spending package, given the stalled progress to pass 12 annual government funding bills. Rep. Kevin McCarthy (R-CA), when Speaker earlier this year, promised not to take up an omnibus like last year’s $1.7 trillion spending package. 

Report: Not-yet enacted global tax deal already has expensive loopholes. A European Union watchdog group says the global tax agreement brokered by the Organization for Economic Cooperation and Development has been weakened by “loopholes.” The EU Tax Observatory released a report this week estimating the planned 15 percent minimum tax on corporate income could have raised $270 billion in 2023, but subsequent carveouts bring the figure down to $136 billion.

New Jersey Democrats urge Treasury to issue guidance on nuclear tax breaks. Last year’s Inflation Reduction Act put in place the Zero-Emission Nuclear Power Production Tax Credit. Ten Democratic lawmakers wrote Treasury Secretary Janet Yellen this week urging the department to issue guidance before the end of the year clarifying definitions for determining credit eligibility.

North Dakota Gov. Doug Burgum again seeks a permanent income tax cut. The Republican governor and presidential candidate said he was “shocked and disappointed” that Republican legislators did not include his tax cut proposal in their proposed budget. He called the legislature into a special session this week to address the state’s budget bill, which the state Supreme Court struck down in September. Burgum wants the legislature to pass his $91 million tax cut proposal, which would raise the income threshold for the bottom tax bracket and reduce other rates. North Dakota currently has a $288 million surplus from the previous two-year budget.

Japan’s Prime Minister has a tax cut plan. Prime Minister Fumio Kishida announced yesterday plans to cut income taxes for households affected by inflation and offer tax breaks to companies to promote investment. Previously, he had been reluctant to cut taxes since the government was still seeking funds to double the nation’s defense budget within five years. The tax cuts will be part of an economic stimulus package Kishida plans to announce later this month.


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