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A Budget, and Shifting (Gas Tax) Holiday Plans


Biden’s FY 2023 budget includes new IRS funding. Besides President Biden’s proposed minimum tax for wealthy households, his revenue proposals largely rehash earlier ideas. However, the plan includes $20.5 billion in funding for Treasury’s domestic and international programs, including $14.1 billion for the IRS, an increase of about $800 billion or 18 percent over 2021. New money would go for taxpayer assistance, technology, and enforcement. 

Virginia Gov. Youngkin’s gas tax holiday runs into a Democratic roadblock. His proposed three-month suspension of the state’s 26-cent gas tax combined with proposals to eliminate its tax on groceries could reduce the transportation budget by $500 million. Several Senate Democrats oppose the governor’s plan. Because Democrats control the Senate, the gas tax holiday may die in the legislature’s special session this week.

New York Gov. Kathy Hochul: A gas tax cut still on the table. Hochul is negotiating the  budget for the fiscal year starting April 1. Suspending the 33 cents per gallon gasoline tax  would save drivers between $3 and $6 per tank. To protect the tax that funds road repair and infrastructure, Democrats proposed temporarily reducing it to 17 cents  Would saving $2 to $3 per tank be enough to make a difference in drivers’ lives? Hochul is evaluating options.

Nebraska lawmaker’s attempt to cut property and income taxes fails. Republican state senator and gubernatorial candidate Brett Lindstrom’s bill to cut property and income taxes failed by one vote. The proposal included a phase-out of all state taxes on Social Security benefits by 2025. But some senators said the cuts helped the rich but not middle-income taxpayers. Lindstrom vows to try again by adding his bill to a measure that would create new tax breaks for sports arenas.

Indonesia will delay a carbon tax. Its tax on coal-fired power plants will go into effect in July instead of April as originally planned, reports Bloomberg Tax (paywall). This will give the government time to write carbon pricing rules and postpone the tax until after Ramadan and Eid al-Fitr. 

 

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