A Senate vote this week? Sen. Kyrsten Sinema (D-AZ) has not yet taken a position on the Manchin-Schumer climate and tax compromise. The bill would establish new spending and tax subsidies for energy production, a 15 percent minimum tax on the income large corporations report to their shareholders, and a substantial boost in IRS enforcement funding. In particular, it’s unclear if she will support the bill’s carried interest reform that would affect private equity investors.
JCT reignites debate over Biden tax pledge. The Joint Committee on Taxation just published an analysis of the Inflation Reduction Act. It found that taxes would increase for households at most income levels, prompting accusations from Republicans that Biden was violating his pledge not to raise taxes on those earning less than $400,000. However, the White House countered that the JCT analysis doesn’t take into account all of the potential benefits in the bill.
As for the compromise bill’s electric vehicle tax credit… Tax Notes reports (paywall) that Rep. Daniel Kildee hopes the revamped electric vehicle tax credit can be phased in over time. As the bill is written, the new “clean energy tax credit” would go to vehicles whose final assembly occurs in North America. Amounts of the credit would depend on the sourcing of minerals and battery components. Kildee hopes that lawmakers will be able to talk to the industry about the best timing of the law’s implementation.
Crikey! Buzz kill down under. The price of a pint of a beer has climbed to $10.50 in Australia, now that the government has increased its excise tax on beer by 4 percent. It’s the biggest increase in over 30 years, according to the Brewers Association of Australia. The government adjusts the excise two times a year with inflation. Australians pay the fourth-highest beer tax in the world compared with member nations of the Organization for Economic and Cooperative Development and members of the European Union.
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