Playing Chicken With the Bipartisan Infrastructure Bill

McConnell: De-link bipartisan infrastructure bill from reconciliation bill, or… else? Senate Minority Leader Mitch McConnell warned President Biden not to let House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer “hold a bipartisan bill hostage over a separate and partisan process.” McConnell insists he is undecided on the bipartisan deal. But Democrats plan to pass a multi-trillion dollar reconciliation bill that would require only 50 Democratic Senate votes to pass, with Vice President Harris providing a tie-breaking vote. Conservative Democrat Joe Manchin has told other senators he is on board with that plan. 

That reconciliation bill needs budget bill, too. Speaker Pelosi continues to work to keep House Democrats in line to pass a budget  in July. If no Republicans back the fiscal plan, she can lose no more than four Democrats. The budget would set the overall price tag for the reconciliation bill — somewhere  between $2 trillion and $5 trillion—and outline how committees will spend the money. 

Supreme Court won’t hear New Hampshire v. Massachusetts. TPC’s Richard Auxier explains the high court won’t hear the dispute over whether Massachusetts can collect income taxes from New Hampshire residents who regularly work in the Bay State but who worked from home during the pandemic. People on both sides of the squabble hoped the justices would clarify how states can tax remote workers.  

How can Congress improve business taxation?  TPC’s Bill Gale and Claire Haldeman have a new study on the business provisions of the 2017 Tax Cuts and Jobs Act. They describe what worked, what did not, and how to improve the current model of business taxation. 

Can a state raise its marijuana tax for educational programming without teacher’s union support? The political group Learning Opportunities for Colorado’s Kids wants the state to raise taxes on recreational marijuana to fund after-school programs for low-income students. It’s trying to collect 250,000 signatures to put the tax increase on the November ballot, but it just lost backing of the Colorado Education Association (CEA). The union withdrew support because it objects to how the program would be implemented. Revenues would go directly to education providers but eligibility remains unclear.  

No more “pink tax” in Louisiana. Governor John Bel Edwards signed into law this week a “pink tax” exemption. Sales tax no longer will apply to feminine hygiene products as well as diapers. Louisiana has collected about $11 million annually in sales tax on these products.


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