Extension, Transparency, An Override, And an Incentive
On Capitol Hill This Week. Tomorrow, the House Ways & Means Committee will hold a hearing with Treasury Secretary Janet Yellen on the President’s Fiscal Year 2025 Budget Request and Treasury Green Book. The Senate Finance Committee will hold a hearing Wednesday to assess the impact of the cyber attack on Change Healthcare, a unit of UnitedHealth Group.
Staffing up for TCJA extension talks. PoliticoPro reports that House Ways & Means Committee Chair Jason Smith (R-MO) has assigned membership to ten working groups or “tax teams” of Republican committee members who will address the pending expiration of sections of the Tax Cuts and Jobs Act (TCJA) after 2025. Off Capitol Hill, the Alliance for Competitive Taxation has hired former House Ways & Means Chair Kevin Brady, who helped shepherd the TCJA in 2017, as spokesperson for negotiations over the law’s extension.
Lining up to defend the Corporate Transparency Act (CTA). The CTA requires many companies doing business in the US to report information about the individuals who ultimately own or control them. It affects an estimated 32.6 million reporting entities this year, and the National Small Business United has challenged the law’s constitutionality. Democratic lawmakers filed an amicus brief with the Eleventh Circuit Court of Appeals last week to support the federal government, arguing that anonymously held shell corporations threaten US tax interests, national security, foreign affairs, and foreign and interstate commerce. The Tax Law Center at New York University School of Law also filed an amicus brief supporting Treasury.
Overriding a tax cut veto in Kansas. The state’s House voted overwhelmingly to override Democratic Gov. Laura Kelly’s veto of income, property, and sales tax cuts on Friday. The legislation would lower state revenue by an estimated $520 million a year. With other legislation in effect, Kansas would use its $3 billion surplus and see a budget shortfall by 2029. The Kansas Senate must now act; 27 out of 40 members can override a veto.
Encouraging relocation to Nebraska. Tax Notes reports (paywall) on legislation enacted in Nebraska last week. The bill makes various tax changes, including a provision called the Relocation Incentive Act. It allows an employer to claim a refundable income tax credit for 50 percent of the amount of expenses paid toward a qualifying employee’s relocation costs. Qualified employees can make a one-time deduction of their state wages from their federal adjusted gross income within their first two years of Nebraska residency.
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.
