Budget Requests, Social Security Fixes, And Face-to-Face Help
Friday on the Hill: The House Ways & Means Committee will hold a hearing on President Biden’s Fiscal Year 2024 budget request with Treasury Secretary Janet Yellen. The March 10 hearing will take place at 9:00 am.
What Paul Krugman gets wrong about Social Security… TPC’s Gene Steuerle examines statements made by Paul Krugman in a recent column and clarifies the mechanics and history of Social Security. Both are important to understand as Social Security trust funds approach exhaustion. Social Security is built on unsustainable promises that must be rectified for tomorrow’s beneficiaries and taxpayers, Gene writes.
Texas House set to pass property tax cut this week. Currently, the appraisal for a primary residence may not increase more than 10 percent per year. House legislation includes appraisal caps for all types of property and would cut school taxes. A typical owner of a $350,000 home would receive a $461 tax break next year and $590 in fiscal year 2025.
Utah’s tax cut legislation heads to Gov. Cox. The bill would reduce the state’s flat income tax rate from 4.85 percent to 4.65 percent. A family of four that earns $80,000 would save $208 a year, according to legislative estimates. The bill would also eliminate the 1.75 percent sales tax on food. For the income tax cut to go into effect, voters would need to approve a constitutional amendment in 2024 to remove the earmark on education for income tax revenue. Gov. Spencer Cox (R) has 21 days to sign or veto the legislation or allow the measures to become law without his signature.
This Saturday: IRS offers special hours for face-to-face filing help. Taxpayer Assistance Centers nationwide will be open on March 11 from 9 am to 4 pm, when taxpayers can receive face-to-face help from IRS employees without an appointment. These centers are usually only open during the week and require appointments for services. Additional Saturday openings are planned for April 8 and May 13.
Global Business Alliance: US subsidies for green tech investment could increase taxes on multinationals with US operations. The Financial Times reports on a study by the Washington trade group. The Inflation Reduction Act provides transferable subsidies for companies investing in green technologies. Depending on how they are accounted for, a company’s US tax liability could drop enough that multinational corporations investing in the US could be open to taxation by foreign jurisdictions that sign onto the global tax agreement drafted by the Organization for Economic and Cooperative Development. That could result in a “massive” transfer of US tax dollars overseas, the alliance says.
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].
