Direct File In The Crosshairs
House Republicans introduce bill to block IRS Direct File. House Ways & Means Committee members Adrian Smith (R-NE) and Chuck Edwards (R-NC) introduced legislation to block the IRS from continuing its Direct File program. The IRS piloted Direct File during the 2024 filing season and plans to expand the offering in 2025. Politico also reports that the Republicans’ Financial Services and General Government appropriations bill for fiscal year 2025 would prohibit funds for the program.
How would seven think tanks use tax revenues to reduce budget deficits? The Peter G. Peterson Foundation asked them and TPC scored the plans. TPC’s Howard Gleckman reviews TPC’s findings. Even with significant spending cuts, nearly all the participating groups recognize that additional revenues would be necessary. However, they profoundly disagree on how to change the tax code.
Over $22 million in property tax refunds to come in Cook County, Illinois. The property tax refunds will be sent automatically to about 10,000 Cook County taxpayers who overpaid last year. Cook County Treasurer Maria Pappas explained that many taxpayers were eligible for exemptions that were greater than the amount billed and subsequently paid.
Group of 20 finance leaders to meet this week in Rio de Janeiro on the global tax deal. They’ll aim to make progress on the stalled “Pillar 1” plan to reallocate taxing rights of large multinational companies. It would also serve to replace unilateral digital services taxes borne largely by US tech giants. A failure to reach a final agreement could spur several countries to reinstate their taxes on those US tech giants and ignite retaliatory US tariffs.
India will increase its capital gains tax. The Indian government increased its short-term capital gains tax rate to 20 percent, Bloomberg reports. It’s the first increase since 2008. It also increased the rate on long-term capital gains (held over 12 months) to 12.5 percent. The government aims to slow the growth of speculative trading in its $5 trillion market.
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