A top-line agreement on federal spending? Appropriators say they have reached a top-line agreement on a fiscal 2022 funding bill that will allow for more spending on both defense and domestic programs. They still need to turn that very broad agreement into line items. Meanwhile, the House has passed another temporary money bill to keep the government operating to mid-March. The Senate is expected to follow.
Senate Democrats propose suspending the federal gas tax in response to rising prices. Sens. Mark Kelly of Arizona and Maggie Hassan of New Hampshire introduced a bill that would suspend the 18.4 cent per gallon federal gas tax through this year. The bill would require Treasury to monitor whether oil and gas companies pass along savings to consumers and be encouraged to penalize those that do not.
Tune in at noon for your TPC Prescription with Liz Farmer. Join Rockefeller Institute of Government fellow Liz Farmer and TPC’s Howard Gleckman will discuss her latest research on the hiring and staffing challenges facing state and local governments. Will hiring struggles continue despite strong revenue growth and federal aid? You can tune in here at 12:00 Eastern.
Remembering Don Lubick. TPC’s Howard Gleckman reflects on the career of Don Lubick, who passed away this week at 95. Lubick’s work in tax policy spanned over 50 years. “At a time when public service is being discounted by so many, it is important to remember a policy idealist who repeatedly answered government’s call. At significant financial sacrifice, Don worked tirelessly to make a better tax code and serve the public good.”
How does CBO estimate the effects of federal taxes on capital income from new investment? The agency put out a new report that answers your questions. Read it here.
Still haggling over an income tax cut in West Virginia. The House Finance Committee passed a measure to cut individual income tax rates by 0 percent next year. Half of any future surpluses would go to additional rate cuts. The bill is an alternative to Gov. Jim Justice’s efforts to repeal the income tax entirely. The state’s income tax accounts for 45 percent of general revenues and one independent analyst figures the bill would cost $264 million in the first year alone.
Vermont edges closer to a new child tax credit. The House gave preliminary approval to a $50 million tax cut that includes a state version of the federal child tax credit. Vermont would provide $1,200 per child under age 6, phasing out for those with annual household incomes exceeding $200,000. The credit would benefit 50,000 children.
Alabama might cut the sales tax rate paid by commercial fishermen, but at what cost? Commercial fisherman currently pay 4 percent sales tax when they buy gear like netting and bait. A bill would cut the rate to 1.5 percent, the same rate currently offered to farmers. The problem: The legislation includes no cost estimate, because the Department of Revenue does know how much tax fishermen pay on specific items.
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