The IRS helps fight the war against ransomware. Politico reports on the growing role the agency plays in investigating ransomware gangs. These gangs prefer payment in hard-to-trace cryptocurrency but the IRS boosted its cybercrime unit to about 130 staff to better track the transactions. It cooperates with the FBI and the Department of Homeland Security to investigate the underground movement of cryptocurrencies between victims and those who extort them. Recent legislation to require crypto brokers to report transactions should make investigations easier.
Study: The enhanced CTC did not reduce employment. New research from the Social Policy Institute of the Washington University in St. Louis finds many parents were able to work more by using Child Tax Credit payments for child care, food, and rent. CNBC reports some parents used the extra financial support to start businesses.
Oregon corporate tax revenues soar. The state collected nearly $1.4 billion in corporate excise taxes in 2021, the most on record and 46 percent more than 2020. Industries with exceptionally strong profits include warehouse and distribution, automakers, and tech manufacturers. Historically, Oregon business tax receipts have been among the lowest in the country.
Mississippi Republicans keep pushing to phase out the state’s income tax. Republicans control the legislature by a wide margin, but are struggling to repeal the income tax that accounts for 34 percent of state revenue. One bill backed by GOP Gov. Tate Reeves would eliminate the income tax and reduce the sales tax on groceries but raise the sales tax rate on many other items. Another GOP bill would keep the income tax but lower the rate.
This week’s Prescription… What does the Treasury’s employee union thinks about this year’s filing season? TPC’s webcast The Prescription will feature a conversation with Doreen Greenwald, national executive vice president of the National Treasury Employees Union. To join the conversation at noon on Thursday, register here.
The Daily Deduction will resume its regular schedule on Monday, February 28, when Congress returns.
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