Concerns that the Wyden-Smith child tax credit (CTC) expansion would cause people to quit working are overblown. In recent days, conservatives have argued that the bipartisan tax deal under consideration could harm the labor market. TPC’s Nikhita Airi and John Buhl review the evidence and the details of the proposal, which show the proposed CTC expansion would likely not prompt lower-income households to stop working.

Treasury Secretary Yellen: Tax fairness is on President Biden’s second term agenda. Treasury Secretary Janet Yellen told reporters that President Biden aims to maintain tax cuts enacted in 2017 (and set to expire in 2025) for those earning under $400,000. “We’re not negotiating new tax breaks for wealthy individuals,” she said, adding that Biden plans to protect additional IRS funding available through the Inflation Reduction Act. 

Next week on Capitol Hill. On Wednesday, January 31, the Senate Budget Committee will hold a hearing on expanding housing affordability, while the House Budget Committee will hold a hearing to assess the role of the Congressional Budget Office. Also Wednesday, the Senate Finance Committee will hold a hearing to consider the nominations of Corey Ann Tellez to be Deputy Under Secretary of the Treasury and Andrew G. Biggs, Kathryn Rose Lang, and Sharon Beth Lewis to be Members of the Social Security Advisory Board. 

A $323 million tax break for former President Donald Trump? The Wall Street Journal reports that Trump could claim up to $323 million in federal income tax deductions. All he has to do is not build on the Blue Monster Golf Course, a property he owns in Florida that he’s claimed as a conservation easement. 

Should Detroit levy an amusement tax? City Council Member Angela Whitfiled-Calloway has asked the state legislature to allow Detroit to implement an “amusement tax” on entertainment services. The Detroit Free Press found that fans of the NFL’s Detroit Lions could pay on average 30 percent more for a season ticket under the plan. An amusement tax on those tickets could generate significant revenue for the city and its neighborhoods, argues Whitfield-Calloway. 

 

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

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