Legislative Traffic Jam Means Tax Bill Idles
The tax package is stuck in congressional traffic. The Tax Relief for American Families and Workers Act of 2024 might not see a floor vote for weeks. TaxNotes reports on the holdup, driven by disagreements over border security, immigration reform, emergency funding for Ukraine and Israel, and a proposed impeachment of Homeland Security Secretary Alejandro Mayorkas. And that’s before getting to concerns some Senators have with the tax provisions themselves, which would temporarily enhance the child tax credit and certain business tax breaks.
If Congress expands the child tax credit, who’d get the most help? PoliticoPro reports on TPC analysis showing the main beneficiaries would be families earning between $10,000 and $50,000. However, less than 1 percent of the plan’s benefits would to people making less than $10,000.
Analysis: IRA funding would offer high return on IRS investment. A new analysis by Treasury and the IRS estimate the revenue impact of Inflation Reduction Act funding for tax compliance and enforcement. It projects that the funds would help increase federal tax revenue by as much as $561 billion over the next ten years. If IRA funding is renewed after that, estimated revenues could reach $851 billion.
Georgia lawmakers consider a sales tax holiday for guns. A majority of Georgia’s senators would like a five-day sales tax holiday on guns, ammunition and gun safes, held just before the start of Georgia’s deer hunting season. The Georgia Senate passed a measure and sent it to the Georgia House. Some Georgia House members have said they would consider a sales tax holiday that applies only to gun safety devices.
Missouri lawmakers consider child care tax credits. The Missouri House has given initial approval to a bill that would establish tax credits to increase the accessibility and affordability of child care. These include credits for taxpayers who donate to support child care centers, for employers who make investments in child care needs for their employees, and for child care providers.
Michigan lawmakers seek to revive film industry tax incentives. The state eliminated its film and digital media production tax incentive in 2015. Researchers have often found that film tax incentives do not provide significant economic benefits, but many states still offer tax breaks for film and television production. New bipartisan legislation proposes a new transferable tax credit voucher for film, television and commercial producers in Michigan, covering up to 30 percent of certain production and staff costs.
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