Omnibus Bill Hits A Snag

A spending package without pandemic relief. The House passed a $1.5 trillion omnibus spending package after pulling $15.6 billion in pandemic relief from the bill. The measure includes no tax provisions. The House also passed yet another temporary spending bill to keep the government running for another week. Without some action, the federal government will partially shut-down on Friday. It is not clear when the Senate will vote on either bill.

Tune in at noon for TPC’s Prescription with Erin Collins. The National Taxpayer Advocate joins TPC’s Howard Gleckman for a conversation about the most challenging tax season in recent memory and her recommendations for improving tax administration. Tune in at noon eastern here.   

Many low-income families may not get the full CTC because they won’t file a tax return. TPC’s Elaine Maag and Urban Institute colleague Michael Karpman share results from a new Urban Institute survey that finds some eligible families may miss out on the Child Tax Credit because they don’t file a tax return. Among those who did not get advance payments last year, about 14 percent don’t expect to file this year. Families with lower incomes, unmarried adults, and people who are nonwhite or Hispanic are most at risk of missing out on the expanded CTC if they fail to file a tax return.

The future of Free File. TPC’s Aravind Boddupalli looks at the future of the public/private program aimed at allowing low and moderate income households to file federal income tax returns at no cost. The program has been plagued by allegations of consumer fraud, limited usage by filers, and, most recently, the decision by TurboTax and H&R Block to end their participation. Nearly three-quarters of participants used the two software programs. 

California Gov. Newsom proposes a gas tax rebate. California has the nation’s highest price of gasoline at $5.44 per gallon. Democratic Gov. Gavin Newsom proposed an unspecified tax rebate to help offset rising prices. Senior adviser Dee Dee Myers told reporters the rebate would likely cost billions of dollars but could be delivered as soon as this spring.

Indiana legislature approved $1.1 billion in tax cuts. On the last day of their session lawmakers passed legislation to reduce the income tax rate from 3.23 percent to 2.9 percent over seven years. If fully phased-in, it would be the lowest flat tax rate in the nation. But revenue must grow by at least 2 percent each year after 2023 for the cuts to continue. The bill also eliminates utility taxes, saving residents and businesses $200 million a year, or about $5-a- month for each homeowner. Gov. Eric Holcomb is expected to sign the bill.

Georgia’s House passed a $1 billion income tax cut. The measure sailed through the chamber in a bipartisan vote. The bill would create a 5.25 percent flat income tax rate, raising taxes on over 500,000 Georgians while cutting taxes disproportionately on the wealthiest taxpayers. 

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

Source link

You cannot copy content of this page

Social Media Auto Publish Powered By :