As expected, the House passed the American Rescue Plan on Friday. The $1.9 trillion relief package passed by 219–212, with all Republicans and two Democrats voting no. The bill includes $1,400 recovery rebates and temporary expansions to the Child Tax Credit and the Earned Income Tax Credit. The bill also increases and extends Family and Sick Leave credits, and extends the Employee Retention Credit. President Biden is urging the Senate to act quickly on the measure and Democrats hope to complete it in two weeks.
Get your TPC Prescription this Thursday with Marc Goldwein. TPC’s Howard Gleckman will talk with Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget. They’ll discuss the pandemic relief proposals being debated in Congress and overall US economic policy. Register here for the noon-time online event on March 4.
The United Kingdom plans a £6 billion income tax hike. On Wednesday, Chancellor of the Exchequer Rishi Sunak will release a budget that would raise the levy by the equivalent of $8.36 billion. The Sunday Times (paywall) reports that by the next scheduled general election in 2024, about 800,000 people who are not currently paying income tax would pay the basic rate of 20 percent. Another 800,000 would be paying a higher tax rate than they do today. The government also wants to raise the corporate tax from 19 percent to 25 percent.
In Oregon, a huge proposed tax hike on beer and wine producers. The state has not raised beer and wine taxes for decades: A barrel of beer is taxed at $2.60; a barrel of wine at 60 cents. A House bill proposes to raise the levies to $72.60 for beer and $10.60 for wine —in order to curb underage drinking and addiction. Says one brewmaster, “This proposal would… cost me $840,000 dollars a year. I don't make $840,000 a year.”
Tomorrow on the Hill. Congressional Budget Office director Philip Swagel will testify before the House Appropriations Committee Legislative Branch subcommittee on CBO’s Fiscal Year 2022 budget.
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