Budget Cuts and Nominations | Tax Policy Center
On Capitol Hill. Late last week, the House Appropriations Committee approved the Fiscal Year 2025 Financial Services and General Government Appropriations Act by a vote of 33 to 24. The bill would cut the IRS’s fiscal 2025 funding from $12.3 billion to $10.1 billion, including a $2 billion reduction for enforcement. The Senate Finance Committee approved the nominations of Rose E. Jenkins, Kashi Way, and Adam B. Landy’s for the US Tax Court. Tomorrow, the Senate Finance panel will hold a hearing on work and Social Security disability benefits.
Connecticut corporations can carry forward NOL deductions for an additional 10 years. Democratic Gov. Ned Lamont approved amendments to rules governing the treatment of net operating losses (NOLs). Corporations may now carry forward a deduction incurred on or after Jan. 1, 2025, for 30 years. Previously, a corporation could carry forward an NOL deduction for up to 20 years.
A tax cut agreement in Kansas. Democratic Gov. Laura Kelly and Republican lawmakers agreed last week to a tax cut package just before the start of this week’s special session. The agreement would reduce Kansas’ three income tax brackets to two, offer property tax relief, and repeal taxes on Social Security income. The plan must still pass in the Legislature. If it does, Gov. Kelly says she will sign it into law.
Maryland’s smokers will pay a higher tax soon. The state’s tobacco tax increase goes into effect on July 1. That means consumers will pay an additional $1.25 per package of cigarettes, on top of the existing $3.75 per-pack tax. Electronic smoking devices, including vaping liquid, will face a 20 percent tax.
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