Werfel Takes Charge, States Continue Tax Cut Trend
It’s official: IRS Commissioner Werfel has been sworn in. On Monday, Daniel Werfel was sworn in as the 50th IRS Commissioner. Werfel served as controller of the Office of Management and Budget from 2009 to 2013 and served as IRS acting commissioner briefly in 2013. His term expires in November 2027.
Tomorrow on the Hill: Treasury Secretary Janet Yellen will present President Biden’s fiscal year 2024 budget to the Senate Finance Committee at 10:00 am EDT.
Will Idaho homeowners get property tax relief? The Idaho House will soon vote on a bill to use 4.5 percent of sales tax revenue to fund a credit for taxes paid on primary residences. The tax credit would not apply, however, to school bonds and levies that voters approve on their own. The bill would reallocate other funds to a school district facilities fund, from which school districts would receive money based on their daily average attendance.
Montana has a new $1 billion tax cut, rebate, and spending plan. Republican Gov. Greg Gianforte signed the bill this week, which provides short-term property and income tax rebates and will cut state income taxes. The legislation also cuts the state’s business equipment tax, restructures the corporate income tax, and streamlines capital gains taxes. Montana households will receive $764 million in tax rebates.
An Ohio income tax cut proposal could inadvertently allow for property tax increases. A House bill would cut income taxes by setting a flat income tax rate of 2.75 percent for earners making more than $26,050 annually. It would also reduce from 36 percent to 31.5 percent the amount of property that can be taxed and freeze the amount people pay in property taxes. But a decades-old law may be in conflict. Designed to stabilize property tax collections against sharp changes in property values, it allows for a property tax rate increase if property values decrease, as long as the new rate does not surpass a voter-approved rate. The bill’s sponsors have promised to amend their proposal.
Proposed in Michigan: A refundable tax credit for union dues. Democratic lawmakers want to establish a 100 percent refundable tax credit for the money spent by workers on union dues. The House Fiscal Agency has not yet analyzed the bill, which could affect 644,000 Michiganders.
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 [email protected].