Although it depends who you ask. President Kevin McCarthy predicted earlier this week that he could cut a deficit reduction deal with President Biden in exchange for increase debt limit. But Senate Majority Leader Chuck Schumer said yesterday that he and Biden are firm in their position that House Republicans must show they have the votes to pass spending cuts. So far, House Republicans have not released a plan for any cuts.
New OECD rules give US companies a temporary deferral of higher taxes. The Organization for Economic Co-operation and Development outlined how the US tax system will interact with the minimum taxes that will take effect in the European Union, the United Kingdom, South Korea, and other countries. The United States has yet to pass legislation that aligns with the agreement.
Speaking of renewable energy, electric vehicle tax credits are doing well in the US. Axios reports that the new tax credits available to automakers are helping boost domestic battery manufacturing on schedule. The value of those tax credits may be four times higher than Congressional Budget Office estimates of about $30.6 billion over ten years due to a surge in new battery plants across the country, according to a Benchmark report. Mineral Intelligence ready for Axios.
Texas sales tax revenue hit an all-time high. The Texas Comptroller reported that state sales tax revenue totaled $4.11 billion in January, 6.6 percent more than in January 2022. Most of the January revenue is based on sales made in December and remitted in January.
The Iowa Senate passes a bill to prevent a property tax increase, but local governments may feel pressured. The Iowa Department of Revenue published in October the tax rates that local governments use to set your budgets, but that rate, which would result in a tax increase of $127 million, was apparently incorrect. The state Senate this week passed a bill that corrects the error, but local governments have already set their budgets. The bill would extend the March 31 budget deadline for local governments to April 30 to give them time to make changes.
Washington state launches a new tax credit for working families. The benefit awards qualifying families between $50 and $1,200, depending on income and number of children. A filing cabinet must also be eligible for the federal Earned Income Tax Credit.
New York tax relief may not reach those eligible. TO new state law allows homeowners age 65 and older (making less than $50,000 a year) to cut their property taxes in half. The limit used to be $37,000. But the county, town, village or school district has to opt into the new income threshold. Taxpayers and tax jurisdictions have until March 1 to decide whether to use the new threshold. If the jurisdictions are approved, taxpayers will miss the break.
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