Congress passes relief bill and spending package. The 5,593 page bill is one of the largest ever considered by Congress. Treasury Secretary Steven Mnuchin expects direct relief payments to be distributed beginning next week. TPC’s Howard Gleckman says the measure includes important tax changes that will help families and businesses hit hard by the pandemic. And it includes some clunkers.
A few tax surprises. The bill includes a few unexpected provisions. There are no limits on the ability of firms to deduct expenses already funded with Paycheck Protection Program grants. Lawmakers had considered “guardrails.” President Trump convinced Congress to restore the 100 percent deduction for business meals. But only for one year. The measure also extends the above-the-line tax deduction for charitable giving for one year and raises the deduction to $600 for joint filers.
Congress approves a $12 billion IRS budget. That up just a bit from last year’s $11.5 billion. It targets more funding to fight money laundering and to improve taxpayer telephone service. It also limits the agency’s ability to go after political non-profits.
President-elect Joe Biden selects Ramamurti for NEC post. Bharat Ramamurti, a former aide to Sen. Elizabeth Warren, will serve as deputy director for financial reform and consumer protection on the National Economic Council. Former Obama administration economic adviser David Kamin will serve as deputy director for the NEC. Former OMB Director Brian Deese will be NEC Director.
House Oversight and Reform Committee will renew its demand for Trump’s tax records. The panel will renew its subpoena for eight years of President Trump's business records from his accountants in the next session of Congress. Trump’s attorneys have so far blocked the subpoena in court.
Governor Cuomo extends sales tax payment deadline for New York City restaurants. Sales tax had been due yesterday, but Cuomo extended the deadline to March 2021 for locales where indoor dining has been suspended. That means all of the city’s restaurants qualify for the extension.
Congress is in recess. The Daily Deduction will post on Mondays until it returns. Happy Holidays!
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