Update 685: This Year’s Tax Day Haul:Assisted by $80 billion SOS for the IRS Today is the deadline for most American taxpayers to file individual tax returns. Taxpayers might notice that this year’s IRS is faster, more responsive and easier to reach, thanks in large part to the $80 billion dollars the agency received in …
Update 654 — Tax Talk of the Town:Fate of CTC and R&E Rest on FY23 Good news from Georgia — Senator Raphael Warnock has won re-election, giving Democrats 51 seats and a governing majority in the Senate (which we cover Friday). Members of Congress, staff and advocates are working feverishly to hash out a compromise …
Update 631 — Overhaul Talks Over for Now,What’s Next on Democrats’ Tax Agenda? When Congress passed and President Biden signed the Inflation Reduction Act into law, numerous tax provisions were included — increased funding for the IRS, a 15 percent corporate minimum tax, a 1 percent excise tax on stock buybacks — but they did …
Update 626 — Democratic Reconciliation:IRA Secures 50 Votes, en Route to Passage Facing an August recess deadline, Democrats in Congress are on the verge of fulfilling their economic policy promise, bringing a hitherto elusive unity to a reconciliation bill and a Senate floor vote as soon as procedurally possible. The leap forward shows lessons learned: …
Update 610 — CBO: A Mean ReversionRapid Return to Pre-COVID Fiscal Status Yesterday’s CBO report projects this year’s deficit will fall by $1.7 trillion — the single largest nominal one-year reduction in the federal deficit in American history. The deficit this year will be lower than CBO projected it would be before the passage of the American …
Update 603 — Tax as a Class Act:Code’s Impact on Income Inequality This past Monday marked the end of tax filing season for 2022. Average Americans again find themselves paying a higher rate than wealthier filers. OMB estimates that the 400 wealthiest Americans pay an average tax rate of only 8.2 percent, widening inequality. Paying a higher tax …
Update 566 – Building a BBB Budget:Can It Be Balanced by Billionaires? Last weekend, Senator Kyrsten Sinema nixed BBB proposals to raise corporate, individual and capital gains tax rates to pay for the bulk of the bill. Scrambling to fill the close to $1 fiscal hole, Democrats have seized upon the billionaire tax option. The plan proposed …
Update 559 — The Payfor Package:Necessity is the Mother of Taxation A reflexive assumption of national opposition to taxes, and support for tax cuts, seemed to have had an axiomatic grip on fiscal politics from the nation’s birth. But the conventional wisdom was seriously challenged by Trump’s $1.9 trillion tax cut of 2017 and left the …
Update 554 — The Road to Reconciliation:Path, Process Ahead for Budget Resolution Last week, the House passed an FY2022 budget resolution, allowing the $3.5 trillion package to move forward via reconciliation, which requires only a simple majority to pass. In order to achieve the Democratic unity needed for passage, Speaker Pelosi promised a group of moderate Democrats …
Update 524 — Tax Plans: Equity AnalysisTax Code as Cause and Cure of Inequities President Biden shook markets yesterday with details of his tax plan he rolled out previously and precisely during the 2020 campaign. Democrats in Congress have a slew of tax proposals on the table as well, many of which are currently under …
