Speaker Pelosi: House will remain in session until there’s a deal on coronavirus relief. Pelosi was responding to moderates in the Democratic caucus who want legislative action before the November election. She vowed the House would remain in session until Congress reaches an economic relief deal.
Will there be a “March to Common Ground?” In the meantime, the Problem Solvers Caucus, comprised of centrist Democrats and Republicans, will propose a $1.5 trillion package that provides another round of stimulus checks, more federal unemployment benefits,and aid for cities and states.
EITC refunds might be smaller next spring because of unemployment benefits. Congress could fix that problem. TPC’s Elaine Maag explains that jobless benefits, which are taxable income, can reduce—but not increase—the Earned Income Tax Credit. Because some low-income families are not having income tax withheld from their benefits, they may have to pay tax when they file next year. Congress could fix this problem by allowing families to choose whether to include jobless benefits in their adjusted gross income when calculating their EITC. .
Meanwhile, learn about the marijuana industry on the IRS webpage. Forbes reports on the new addition to the agency’s site. Why the change? The IRS “understands this is a new and growing industry and provided frequently asked questions about record keeping, cash payment options, large cash amounts, and other related topics to help promote voluntary compliance in the industry.” Income from the sale of marijuana is subject to federal tax, but the costs of doing business are not deductible even in states where sales are legal.
Nashville Mayor says property tax hike rollback would “gut” the city. Mayor John Cooper opposes a referendum to roll back Nashville’s property tax increase and limit the metropolitan area’s ability to raise taxes. He says it would create a $322 million deficit and reduce Metro Nashville Public Schools’ operating budget by 25 percent. The referendum would cap Nashville’s property tax hikes at 2 percent annually without voter approval. Voters will decide on the referendum in a special election on December 5.
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