Sen. Markey opposes the Schumer-Manchin side deal. Sen. Ed Markey, joining Sen. Bernie Sanders, opposes including in a stopgap spending bill changes to the nation’s permitting system for fossil fuel extraction, a provision demanded by Sen. Joe Manchin. Disagreements also remain over coronavirus aid, disaster relief, and more, creating obstacles to a deal.
Treasury can say private equity is a business, subject to the new book minimum tax. TPC’s Steve Rosenthal argues private equity is a business. Steve says Treasury can apply the new tax to companies owned by private equity firms, if an individual firm’s combined portfolio exceeds the $1 billion book earnings threshold in the law. Those firms could file a single consolidated tax return for the many companies in their portfolios, simplifying administrative issues.
Stanford University wants a tax break for faculty houses. The university wants a tax exemption for two houses it owns and provides to faculty members, claiming they are used for educational purposes. While Stanford is asking for annual property tax relief of $20,657 for the two homes, Santa Clara County and the Palo Alto Unified School District argue they could lose as much as $5 million in annual tax revenue if Stanford receives the exemption. The university owns as many as 1,200 similar properties.
Which states tax student loan forgiveness, and why is it so complicated? TPC’s Nikita Airi and Lillian Hunter review states’ treatment of forgiven student debt. It all comes down to whether they conform to federal definitions of taxable income or adjusted gross income. Last year’s American Rescue Plan Act explicitly exempted student debt forgiven between 2021 and 2025 from federal income tax. Four states plan to treat student loans that President Biden is forgiving as income, while three are reviewing their rules.
Tune in Thursday for TPC’s Prescription with Rohit Kumar. The former top policy aid to Senate Republican Leader Mitch McConnell will discuss tax policy in the lame-duck congressional session, including the fate of key expired tax provisions. Kumar is coleader of the Washington National Tax Services practice at PricewaterhouseCoopers. Register and tune in here for the noontime event on Sept. 22.
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