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

Meanwhile, the Senate Finance Committee is considering tougher work requirements for the Child Tax Credit (CTC). This week’s panel debated the merits to add stronger work requirements for families using the CTC. While Democratic members touted the success of the expanded CTC in reducing child poverty, Republican members countered that the research could not be fully trusted, given only five months of data and the circumstances of the pandemic.

In the absence of a federal expansion of the CTC, more states are choosing to provide cash benefits to families. Colorado has joined eight other states who in two years have supported a guaranteed cash benefit for their poorest parents. While smaller than the expanded federal CTC in effect for 2021, the state CTCs could test the idea that the government can give cash to families without discouraging parents from working outside the home.

Some in Idaho seek revenue from marijuana taxes. The New York Times reports about 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 cities, residents are tired of seeing marijuana tax dollars being collected in Oregon, where recreational marijuana is legal. TO poll for idaho statesman found that 68 percent of residents support legalizing marijuana for medical purposes and 48 percent support legalizing recreational use. So far, the Republican governor of Idaho, Brad Little, opposes the legalization of marijuana.

“The IRS needs YOU.” Tax Notes reports (paywall) on the latest IRS hiring strategy, trumpeting patriotism in the service of taxpayers. “Twenty years ago… he would emphasize. . . the IRS mission, how cool is it, what can we do, [and] the important role we have in finance and government,” said IRS Commissioner Danny Werfel. “[But] the center of gravity must be in their races”. He explained the need to convince prospective IRS employees that three to five years with the IRS is a resume builder and skills builder that provides unique opportunities.

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

Also next Thursday: TPC recipe with Libin Zhang. Fried Frank’s partner will talk about how the growing popularity of artificial intelligence and tools like ChatGPT could affect tax policy and administration. Sign up and tune in here for the noon discussion.

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Register here to receive it in your inbox on weekdays at 8:00 am (only on Mondays when Congress is in recess). We welcome suggestions for new research or other news. Email Renu Zaretsky at [email protected].

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