Democrats plan their response to the debt limit. President Biden will meet with top Hill Democrats today to develop a joint strategy to raise the debt ceiling. House Republicans insist they won’t raise the debt limit until Democrats agree to deep spending cuts. Biden aides say he won’t link the two issues. On the other hand, Treasury Secretary Janet Yellen rejected the idea of minting trillion dollar coins to avoid the debt problem. The former Fed chair told the Wall Street Journal (paywall), that the Federal Reserve would probably never agree.
Why did it take so long for the IRS to audit Trump’s tax returns? Democrats on the Committee on Fourteen Ways and Means have called on the Government Accountability Office to investigate why the IRS delayed its mandatory presidential audits of Donald Trump, political reports. Notably, the signatories did not include top committee Democrat Richard Neal.
Rhode Island Governor McKee plans to cut gas sales and taxes by $60 million. In his second State of the State address, the Democratic governor will announce a plan to reduce sales tax from 7 percent to 6.85 percent, a cut of $35 million annually. It would stop an automatic gas tax increase on July 1 at 3 cents a gallon, which would reduce revenue by $25 million. It would also give residents a rebate for gross receipts tax on energy bills this winter, lower the corporate minimum tax, and eliminate a tax businesses pay on garbage.
Nebraska Governor Pillen is asking for $1.5 billion in tax cuts. Your legislative package would be would immediately eliminate the tax on Social Security benefits and create a flat individual income tax rate of 3.99 percent by 2027. It would also allow $25 million a year in tax credits for donors who fund scholarships for private K-4 students. 12.
Indiana lawmakers seek to eliminate the individual income tax. The tax contributed 39 percent of all state revenue in 2022, according to budget analysts. Senate Republicans remove the tax entirely but they have not said how they would replace the revenue. The Indiana Chamber of Commerce believes the idea has potential, but urges a responsible approach.
OECD: Revenue gains from global tax reform will be higher than expected. A new analysis of the Organization for Economic Co-operation and Development (OECD) finds that a global corporate minimum tax could raise $220 billion annually, 9 percent more than current corporate income tax revenue. The group previously estimated an increase of $150 billion. The findings were presented in a webinar In the past week.
Next month: “The Federal Income Tax: Racially Blind But Not Racially Neutral.” On February 24, the The American Tax Policy Institute will host the one-day forum in Washington, DC. The event will include panel discussions on topics including race, history and taxes; tax systems and privileged elections; the systemic inequities that underpin seemingly neutral tax laws; and discrimination through non-discrimination. Visit the ATPI website for more information here.
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