House Ways & Means Plans Vote On Its Tax Cut Package
On the Hill this week. Tomorrow the House Ways & Means Committee will begin to mark up several pieces of legislation, including the “Tax Cuts for Working Families Act,” which would temporarily increase the standard deduction for taxable years 2024 and 2025. The committee will also consider loosening restrictions on certain business tax breaks and repealing clean energy incentives put in place by the Inflation Reduction Act. The Joint Committee on Taxation expects to release its analysis of the package this week. On Wednesday, the Senate Finance Committee will hold a hearing on anti-poverty and family support provisions in the tax code.
IRS increases scrutiny of Employee Retention Credit (ERC). The tax incentive was designed to support companies during the pandemic. But filing for the credit has become too easy, especially with the growth of consulting companies that help business owners claim the credit. The IRS has added fraudulent claims involving the ERC to its annual “Dirty Dozen” list of tax scams. The risks of audit are higher for firms that improperly claim it.
Massachusetts Senate unveils $590 million tax relief proposal. The legislation would increase the state’s child and dependent tax credit, earned income tax credit, and rental deduction cap, while doubling the senior circuit breaker credit. It would also raise the Massachusetts estate tax threshold from $1 million to $2 million. The state Senate is expected to vote on the package this week.
France plans to close the tax “loophole” that helps Airbnb, just in time for the Olympics. French Economy and Finance Minister Bruno Le Maire proposed raising taxes on Airbnb rentals to align with other long-term rentals. An Ifop survey finds that nearly 20 percent of people in the greater Paris region that do not already rent their home through Airbnb plan to do so during next year’s Olympic Games in the French capital.
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