Debt Ceiling Standoff Continues | Tax Policy Center
President Biden and Speaker McCarthy remain at odds. Biden told reporters yesterday he believes he has the authority to use the 14th Amendment to unilaterally address the debt ceiling. But he acknowledged that it might not be able to be invoked in time and withstand legal challenges. Meanwhile, Politico reports on the state of negotiations: Not good. “We’re going to have some very long days ahead,” a White House senior aide said.
This week on Capitol Hill. The House Ways & Means Social Security Subcommittee on Wednesday will hold a hearing on the Social Security Administration’s role in combatting identity fraud. Its Trade Subcommittee will hold a hearing on customs policies on Thursday.
Will AI be able to do our tax returns? TPC’s Robert Weinberger explores the power of ChatGPT, and concludes that it is not yet ready to answer real-life tax questions or optimally complete a tax return. “It is flummoxed by translating our convoluted tax code, its regulations, and rulings into tailored decisions. It is prone to error and dependent on internet information only available before 2021.” And a tax return requires information and data not be publicly available, as well as decisions based on precedent and values.
Minnesota lawmakers pass a $3 billion tax plan. The legislative package includes rebates, child tax credits, working family tax credits, property tax relief, and new tax increases on some investment earnings and corporations. Minnesota currently has a $17.5 billion budget surplus. Democratic Gov. Tim Walz is expected to sign the legislation into law.
Michigan’s income tax revenue expectations drop by $1.8 billion for next year. Tax changes passed in March will reduce state revenues by an estimated $1 billion to $2 billion in the next few years, according to budget officials. On Friday, they reduced revenue expectations by $883 million for the current fiscal year, $1.8 billion for next year. The state currently has $7.5 billion in surplus funds.
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].
