House GOP’s Temporary Tax Cut, Followed By A Small Tax Hike
House Republicans offer a temporary tax cut for all income groups. The plans would temporarily raise the standard deduction and restore more generous business tax deductions. TPC’s John Buhl highlights findings from TPC’s latest analysis of the plan, which recently cleared the House Ways & Means Committee on a party-line vote. Modest tax cuts for most households in 2024 would result, but after some of the largest cuts expire, most households would face a small tax increase due to the proposed repeal of clean energy tax breaks.
SCOTUS declines to hear out-of-state sales tax case. The US Supreme Court will not consider Quad Graphics v. N.C. Department of Revenue. The printing company argued that the North Carolina revenue department had no authority to assess a sales tax in 2018 on transactions between 2009 and 2011 with some of its North Carolina-based customers, in spite of the 2018 South Dakota v. Wayfair case that granted the state that authority. Quad Graphics argued that North Carolina failed to follow the law previously established by McLeod v. J.E. Dilworth. The High Court offered no commentary about its decision.
In Wisconsin, municipal budgets will miss property tax revenue from tribal lands. A federal appeals court ruled last year that Wisconsin cannot force tribal landowners to pay property taxes on reservation lands. Now, fewer residents are paying property taxes in communities with tribal lands, driving up property taxes for non-tribal residents. For example, in Sanborn, the tax rate doubled. Taxes on a $100,000 home climbed from $2,168 in 2021 to about $4,438 last year. Counties are seeking state aid to fill revenue gaps and avoid substantial tax increases for residents. Negotiations are ongoing among lawmakers.
President Biden’s son Hunter Biden reaches deal on federal income tax charges. Hunter Biden will plead guilty to misdemeanor tax offenses, sparing him from prosecution on a charge of illegally possessing a firearm as a drug user. The Associated Press reports that the Justice Department would recommend probation for the tax charges.
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].
