Tax-exempt groups, Tax-Advantaged Accounts, Tax Cuts, And Gas Tax Options
House Ways & Means Committee passed five bills on tax-exempt groups and data disclosure this week. One would require public disclosure of grants made by tax-exempt groups to foreign entities, while another would impose penalties on tax-exempt organizations that accept contributions from foreign nationals and then contribute funds to political committees. Two others would keep 501(c)(3) organizations from directly funding election organizations and require annual disclosure of contributions to tax-exempt groups by foreign sources and expand privacy for US donors. The fifth bill would strengthen penalties for the disclosure of taxpayer data.
On Capitol Hill next week. The House Ways & Means Tax Subcommittee will hold a field hearing in Erie, Pennsylvania, on economic prosperity in the “Rust Belt.” The Senate Finance Committee will hold a hearing on Tuesday, May 21, on child savings accounts and other tax-advantaged accounts that benefit children. Also Tuesday, the panel’s Subcommittee on International Trade, Customs, and Global Competitiveness will hold a hearing on trade enforcement entry of merchandise at US ports. On Wednesday, May 22, the full panel will hold a hearing on the Family First Prevention Services Act.
Income tax cuts in Colorado. Democratic Gov. Jared Polis signed legislation this week that reduces the state income tax rate from 4.4 percent to 4.25 percent and reduces the sales tax . Polis also approved a cap of 4.5 percent for property tax increases. Officials estimate an annual property tax savings of $500 for homeowners.
Who’s left behind in New York State’s tax break for local news outlets? Last month Democratic Gov. Kathy Hochul signed the nation’s first tax break for local news organizations. The $90 million tax credit program offers $30 million in tax credits each year over three years, designed to cover half of a journalist’s salary up to $50,000 each year. But the program excludes most TV broadcasters and many commercial radio stations..
California officials want to find an alternative to the gasoline tax. In a new pilot program officials are testing whether they can replace the current 58-cent-per-gallon gasoline tax. They have offered select driers $400 gift cards to participate in two alternative payment models. In one model, a driver pays a flat per-mile rate. In the other, the driver pays a rate tailored to their vehicle’s fuel efficiency.
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