Yellen will continue as head of the Treasury. The Treasury secretary has told President Biden that he plans to stay until the end of his first term, multiple news organizations have reported. Sources say she considered leaving after two difficult years, but Biden asked her to help navigate the debt limit battle expected later this year. Yellen is a former chair of the Federal Reserve and a highly respected expert on public finance.
The House can vote to replace the income tax with a national retail sales tax and abolish the IRS. Some House Republicans say Kevin McCarthy agreed to give them a vote as part of the deal to secure his presidency. Your Fair Tax Law it would replace the federal income tax with a national sales tax and replace the IRS with an “administering authority.” It’s unclear if the bill can pass the House, but it would certainly die in the Senate.
More House committee news. Representative Jodey Arrington of Texas will be the new chair of the Budget Committee. She will replace Rep. Jason Smith, who will become Chairman of Ways and Means.
Fighting for defense spending. Some staunch Republican populists want to include military spending in their deep budget cuts. But top House Republicans, including Majority Leader steve scalise and Chair of the Appropriations Committee kay granger say no way House Republicans say they want to reduce fiscal year 2024 discretionary spending to 2022 levels, a cut of about $130 billion.
Former Trump Organization CFO gets 5 months for tax fraud. Allen Weisselberg was sentenced to five months in jail and five years probation after pleading guilty to tax fraud. A New York jury found the company guilty of 17 counts of civil tax fraud for giving Weisselberg and other top executives tax-free benefits in lieu of taxable wages. The former CFO agreed to testify against the company but not against Trump, who was never charged in the scheme.
Texas has a surplus of $35 billion. Inflation caused sales tax revenue to rise, according to the Texas Public Policy Foundation. What to do with the money? Legislators are watching property tax relief for starters. State caps limit new spending to about $12.5 billion.
Will Minnesota continue to tax Social Security income? The state runs a larger-than-expected $17.6 billion budget surplus, so lawmakers are considering eliminating the tax on Social Security benefits. The Department of Revenue estimates that the measure could reduce taxes for 400,000 residents, to the tune of $1,200 for an average return. But the state, one of 12 still taxing Social Security benefits, would lose $500 million in annual revenue.
A tax break for house sharers in Oregon? Lawmakers are developing a bill to waive the tax that owners must pay for the rent of rooms, as long as they charge $1000 or less per month. Home Share Oregon, a roommate matchmaking site, backs the bill, which could help keep older adults in their homes. The company says 800 homeowners are looking to rent vacant rooms on its site and more than 3,000 people are looking for space.
Georgia’s gas tax exemption has ended. The state resumed the collection of its 29 cents per gallon tax on fuels for motor vehicles today. The tax was suspended for ten months last year. Prices won’t go up immediately because retailers must first sell the untaxed gasoline they received during the tax holiday. The suspension cost Georgia about a billion dollars.
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