Jason Smith will chair the Ways and Means Committee. House Republican leaders chose Rep. Jason Smith of Missouri. Smith was serving as a Republican on the House Budget Committee. Considered a far-right populist, he is sponsored a bill to give a $2,000 tax credit to unborn children and it represents a departure from the pro-trade and free-trade Republicans who headed the committee in the past. He beat out Adrian Smith from Nebraska and Vern Buchanan from Florida. The GOP Steering Committee election still must be approved by the full party caucus, but that is considered a formality.
The House decision to rescind the new IRS funding would add $114 billion to the deficit. The House approved the House GOP plan to rescind most of the $80 billion in new IRS funding that Congress approved last year. The measure will die in the Senate. The Congressional Budget Office estimates the bill would cut about $71 billion of the $80 billion in new money. But by reducing funding for compliance, the bill would lose about $114 billion in revenue over ten years. The Center on Budget and Policy Priorities reports that the IRS has fewer tax agents now than it did in 1954.
CBO: House moves to rescind the new IRS funding would add $114 billion to the deficit. He Congressional Budget Office Estimates The bill that House Republican leaders say is their first legislative priority would cut about $71 billion of the $80 billion in new IRS funding that Congress passed last year. But by cutting compliance funding, it would lose about $114 billion in revenue over 10 years. He Reports from the Center for Budget and Policy Priorities the IRS has fewer tax agents now than it did in 1954.
Virginia Governor Youngkin wants $1 billion in tax cuts. The state expects a surplus of $3.6 billion, so the Republican and possible presidential candidate says tax cuts are affordable. The legislature passed $4 billion in tax cuts last fall. Youngkin now wants to lower the corporate tax rate and the top individual income tax rate, and increase the standard deduction. The divided General Assembly opens its session tomorrow.
Colorado Governor Polis calls for more property tax relief. Property taxes have skyrocketed with property values and the Democratic governor seeks more than $200 million in further rate cuts over the next two years, on top of the $700 million the legislature has already passed. Polis hasn’t specified a plan, but wants the legislature to use $200 million in general fund money to cover any lost revenue for school districts and local governments.
Nebraska legislator: Taxes on “skill games” like slot machines. The number of slot machine-like video games has doubled since 2018 to nearly 4,000. State Senator Tom Briese will introduce a bill to tax games of skill at the same 20 percent rate as slot machines. It would fund an estimated $20 million in property tax credits.
Pennsylvania lawmakers can vote to end automatic gas tax increases. The Senate Transportation Committee is considering a bill to freeze automatic gas tax increases. Sponsors say rising wholesale gasoline prices raised the state tax to 61.5 cents a gallon, second only to California. The committee may consider future legislation to create a mileage-based user fee in electric vehicles to finance transportation projects.
Ohio launches Beginning Farmer Tax Credit. The program aims to support retiring farmers and help new ones. It encourages older farmers to sell or rent their livestock, land, or equipment to those who are new to the industry and want to make farming a significant source of income. The carrot: a 3 percent income tax credit.
In Taiwan: Tax credits for chip makers. Taiwan will grant a 25 percent tax credit to local microprocessor manufacturers for research and development expenses. Last year, the US passed new taxes and other subsidies for its domestic chipmakers.
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