The Biden tax agenda may not be DOA. Even a GOP-controlled Senate might agree to some of the tax proposals included in the president-elect’s tax agenda. TPC’s Howard Gleckman notes that some of his proposals, including expanded refundable tax credits for low- and moderate-income households, retirement savings reforms, and tax credits for US manufacturing have bipartisan support. Biden’s tax increase proposals will have tougher sailing if the GOP retains control of the Senate after two Georgia run-off elections set for Jan 5.
The European Union has imposed $4 billion in tariffs on American goods. The move comes after negotiations stalled out between Europe, the US, and the World Trade Organization over tax subsidies the US provides aerospace company Boeing. The tariffs include a 15 percent levy on aircraft and a 25 percent tariff on a range of agricultural and industrial products.
If you’re working from home, should you be paying a commuter tax? In March, Ohio Republicans passed legislation allowing cities to continue to collect municipal income tax revenue for up to 30 days after the state’s emergency pandemic declaration expires. But the pandemic hasn’t ended and city governments still need the revenue to fund services. A conservative think tank has sued, claiming the legislation is unconstitutional. Republican lawmakers also introduced legislation to end the collections.
Self-supporting college students: There’s still time to receive your Economic Impact Payments. The IRS reminds eligible college students who are not dependents on their parent’s tax return to register by November 21. Those who do so will get their Economic Impact Payment (EIP) by the end of the year. Millions of low-income people have yet to sign up for the payments and the IRS hails today as National EIP Registration Day for community outreach efforts.
But watch out for this new EIP text scam. The IRS, state tax agencies, and tax preparers are warning that thieves are attempting to trick people into disclosing bank account information they say is required to receive their $1200 Economic Impact Payment. The scam text message reads: "You have received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this payment into your account. Continue here to accept this payment …" The text includes a link to a fake phishing web address. Neither the IRS nor state agencies ever text taxpayers asking for bank account information.
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- © Urban Institute, Brookings Institution, and individual authors, 2020.