The IRS issues a direct electronic filing report ahead of the planned pilot project in 2024. He new report examines the potential costs of implementing an IRS-administered tax filing system and the challenges with managing such a system. It also includes surveys on taxpayer interest in being able to file returns electronically with the IRS; most were “very” or “somewhat” interested in the idea and willing to make the switch, but interest was slightly less among those who use a paid tax preparer.

Tougher work requirements in exchange for a debt limit increase? Speaker Kevin McCarthy (R-CA) said yesterday that tougher work requirements for public assistance programs, including health care and food security, were his “red line” in debt ceiling talks with President Biden. Biden expressed his willingness to discuss them. negotiators see progress in conversations.

Tune in tomorrow at noon for the TPC Prescription with Shai Akabas of the Bipartisan Policy Center. Akabas will discuss the latest calculations for when the US could default on its debt ceiling and the ramifications this could have for the federal budget and economy. Sign up and tune in here.

Iowa enacts a SALT workaround. The state has enacted an entity-level tax election for pass-through entities. this will allow a partner or shareholder to claim a credit against individual and franchise taxes paid to the state. The provision is retroactive to January 1, 2023. Iowa is the latest of several states to enact the fix to the $10,000 cap on state and local tax deductions set by the Tax Cuts and Jobs Act of 2017.

Oklahoma lawmakers reach agreement on tax credits for private schools or homeschooling. Republican Governor Kevin Stitt and Republican lawmakers have agreed to a legislative package that includes $625 million in new recurring funding for education. The agreement also ensures a plan to provide $1,000 per student tax credit for homeschooling families and a tiered tax credit for private school expenses. The credit would be $5,000 per student for families earning more than $250,000 per year and up to $7,500 per student for families earning $75,000 or less, with a preference for families with household incomes of less than $150,000. The private school tax credit is capped at $150 million in 2024, $200 million in 2025, and $250 million in 2026.

Texans will pay a new tax if they buy an electric vehicle. Republican Governor Greg Abbot signed the law New Electric Vehicle (EV) Tax. Electric vehicle owners will pay $400 to register a new electric vehicle and $200 to renew an electric vehicle registration. The new tax goes into effect on September 1 and does not apply to electric motorcycles, mopeds or autocycles. State officials estimate that the tax will generate about $3.8 billion in state revenue in 2024.

In the UK: One in five will pay a higher tax rate by 2027. Prime Minister Rishi Sunak decided to temporarily freeze the adjustment of income tax thresholds to inflation as the nation seeks to control inflation and deficits. The Institute for Fiscal Studies estimates the freeze will put an additional 7.8 million people in the 40 percent marginal rate bracket. The UK currently exempts the first £12,570, imposes a 20 per cent “base” rate on income above the threshold up to £50,270, after which one pound of income is subject to the rate.” above” 40 percent. Income above £125,140 faces a 45 per cent rate.

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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