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A Senate Sprint Before Recess

Senate Democrats still squabbling over budget reconciliation details. While there are unlikely to be major climate provisions or tax increases in the budget reconciliation bill, Senate committee chairs still are scrambling to add money for pet programs. They include more funding for COVID-19 vaccines, affordable housing, and Medicaid home-based long-term care, as well as more aggressive changes to Medicare prescription drug pricing. Majority Leader Chuck Schumer still hopes for a vote before the Senate leaves for its August recess. Stay tuned.

Chips bill on the Senate calendar for this week. Senate leadership still hopes to approve this week a reworked $52 billion bill aimed at increasing subsidies for the US computer chip industry. The measure includes a temporary 25 percent investment tax credit for chip manufacturers.        

Grassley would index the CTC for  inflation.  Sen. Chuck Grassley has a plan to adjust the Child Tax Credit and some other refundable tax credits for inflation. That idea might get broad Democratic support but Grassley’s proposed pay-for, extending the $10,000 cap on the state and local tax deduction, probably would not.

Massachusetts Senate approves tax relief plan. The chamber approved one-time tax rebates of $250 for single filers earning between $38,000 and $100,000 and $500 rebates for married filers earning up to $150,000. The plan also increases  the state’s child and dependent credit, earned income tax credit, rental deduction, and tax credit for seniors’ rent or property taxes. The changes would take effect immediately, unlike modifications proposed by the House. Gov. Charlie Baker has been pushing for his own $700 million tax relief package. 

Idaho tax revenues hit a record $6.2 billion in  fiscal 2022. Collections beat expectations by over $1 billion. Corporate income tax revenue comprised about two-thirds of the surplus. Individual income tax revenues were 13 percent higher than projected and sales tax revenues were 9.5 percent higher.

South Korea will again postpone its tax on crypto gains. The government  planned to start collecting a 20 percent tax next Jan. 1. But it deferred the levy  for two years. This is the second time the government delayed the tax.

OECD: Reform property taxes that favor the wealthy. The Organization for Economic Cooperation and Development compared property taxes among its 38 member nations and  suggested countries could improve their tax systems’ efficiency and equity by regularly updating property assessments or reducing or capping mortgage interest tax benefits.


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