Federal Reserve Chair Jay Powell will brief the House Republican Study Committee on the debt ceiling. Per Roll Call, Powell will meet with the caucus today during a lunch briefing. House Republicans are seeking concessions from President Biden and congressional Democrats before agreeing to raise the debt limit. Powell will discuss that topic, the federal budget, and the recent financial turmoil caused by the failure of Silicon Valley Bank.
The Supreme Court will hear arguments about how the IRS gathers data from the relatives of tax cheats. At issue is whether the agency can request financial data on people related to tax delinquents without their permission. In this case, Remo Polselli was under investigation for suspected tax evasion. The IRS agent sought financial information on Polselli’s spouse and legal affiliates without giving them notice. In an amicus brief supporting the Polselli’s argument, the Institute for Justice said that by failing to provide notice, the related individuals being investigated are being denied the right to dispute the search.
$4 Trillion in US wealth is stashed overseas, much of it in tax havens. In a new blog, TPC’s Howard Gleckman explores data in a new study on information reported to the IRS by foreign financial institutions, as mandated by the Foreign Account Tax Compliance Act. Although most accountholders are immigrants with relatively small accounts, $4 trillion belongs to group of wealthy individuals through partnerships held in various tax havens. “Some critics of the study say FATCA reporting distorts the amount of wealth in overseas accounts by conflating foreign accounts held directly by US investors with holdings by US individuals in domestic funds that, in turn, own interests in offshore funds,” Gleckman writes. “Despite those significant gaps, this paper provides a compelling look at both the magnitude of assets held overseas and the characteristics of their US owners.”
A California appeals court ruled that the state can’t withhold sales tax revenue based on what cities raise from excise taxes on sugary drinks. Some cities in California are authorized to impose taxes on sugary beverages, even though a 2018 law prohibits sales taxes on groceries, including soda. In those instances, the state withholds an amount equal to the excise tax revenue from the locality’s portion of sales tax revenue. Via Bloomberg Tax, a district appeals court ruled that the state’s withholding of the revenue is an excessive response.
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