Debt Ceiling Standoff Continues, House Vote Expected Today
A threat from Senator Manchin related to the debt ceiling standoff. The West Virginia Democrat says he’d support the repeal of the Inflation Reduction Act if the Biden administration does not invest $384 million in energy security, or fossil fuel investments. Meanwhile, Speaker McCarthy’s debt limit bill could see a vote later today. It would repeal key climate investments, but may not have sufficient Republican support for passage. President Biden says he’ll veto the bill should it land on his desk.
CBO estimates that the House GOP “Limit, Save, Grow Act” would reduce deficits by $4.8 trillion over 10 years. The Congressional Budget Office (CBO) score finds that the plan would reduce discretionary spending by $3.2 trillion, while reducing mandatory spending by $700 billion and reducing interest payments on the debt by $500 billion. Revised figures from the Joint Committee on Taxation (JCT) may also raise some eyebrows. JCT now expects the clean energy tax incentives to cost about $570 billion over a decade, a $300 billion increase over its score prior to the IRA’s enactment.
Alaska GOP Gov. Mike Dunleavy introduces a sales tax proposal. A spokesman for the governor told Tax Notes that a “sales tax bill will be [introduced]” before the legislative session ends on May 17. The bill could be considered next year, given Alaska is in the first year of its two-year legislative session. Alaska faces a budget shortfall. Other revenue measures under consideration include a bill that would levy a new 2 percent tax on individual income over $200,000 and a flat $20 tax on income below that threshold, effective for the 2025 tax year.
Georgia lawmakers set to review state tax incentives for businesses. The chairs of the Senate Finance Committee and House Ways and Means Committee will lead a panel conducting a large-scale review of tax breaks Georgia gives to businesses. These include Georgia’s film tax credit, the state’s most expensive and largest tax incentive. Other tax credits, like the state’s jobs tax credit, have not appeared to have paid off for the state nearly as well.
Michigan Strategic Fund Board approves up to $615 million in tax incentives for District Detroit project. The $1.5 billion development project will receive state and local property tax incentives from Michigan’s economic development board. The funds will go toward a project to build 695 mixed-income residential units, 1.2 million square feet of commercial office space, 100,000 square feet of retail, and 467 hotel rooms across 10 properties in and near downtown Detroit.
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