Cuts To The IRS Budget Advance to Senate Floor
Capitol Hill developments this week… Senate appropriators on Thursday unanimously approved a $16.9 billion fiscal 2024 bill to fund the Treasury Department, IRS and related agencies. . The legislation would rescind $10 billion in IRS funding from the $80 billion boost provided by the Inflation Reduction Act. The Senate Finance Committee and House Ways & Means Committee also unveiled their draft Taiwan tax agreement, which would end double taxation for those in the Taiwan region, TaxNotes reports (paywall).
IRS and US prosecutors are investigating wealthy crypto traders and fund managers who used Puerto Rico’s tax breaks. Bloomberg reports on civil and criminal investigations into several hedge fund managers, crypto traders, and other wealthy Americans. They are suspected of lying about the nature of their Puerto Rico residency and key elements of their income to take advantage of the tax breaks. Attorneys and accountants responsible for marketing the island’s tax program are being investigated upon suspicion of conspiracy and wire fraud.
Most OECD countries with digital services taxes may wait one more year to impose them. The Organization for Economic and Cooperative Development announced that over 30 countries with planned national digital services taxes will wait to apply them at least until 2024. The jurisdictions also have the option to wait through 2025 if needed, as adoption and implementation of the OECD’s Pillar 1 and Pillar 2 tax deal continues.
Marijuana company protests federal ban on tax deductions for cannabis industry. MariMed staff dressed in colonial garb and reenacted the Boston Tea Party to draw attention to Section 280E of the Internal Revenue Code, which causes the marijuana industry to face higher tax rates. MariMed CEO and President Jon Levine stated, “Section 280E is unfair and hampers companies striving to make cannabis accessible for consumers and medical cannabis patients in all legal states. It should be repealed.”
Milwaukee has a new sales tax. The 31st largest city in the country enacted a 2 percent sales tax that goes into effect on Jan. 1. There’s been vocal opposition to the tax in the city. The tax could generate roughly $190 million a year, with the aim of avoiding a fiscal crisis.
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].
