Treasury Secretary Yellen sees progress on the global tax deal. Treasury Secretary Janet Yellen told the House Ways & Means Committee yesterday she’s “very hopeful that Poland will soon decide that it’s in their interest to agree to” the international tax deal that sets a 15 percent minimum corporate tax. A bigger challenge may be getting the US Congress to approve Pillar 1 of that agreement, where companies would be taxed in countries where they do business. Earlier this week, Yellen acknowledged that change would need a congressional OK.
Can Yellen break a logjam over new retirement savings tax breaks? At a Senate Finance Committee on Tuesday, Sen. Ben Cardin asked Treasury to help broker a deal on the so-called Secure 2.0 bill. The House passed a version in March but the Finance panel has yet to develop an alternative. “We need your push here to get to the finish line,” Cardin said. Yellen replied that Treasury was ready to assist. Sponsors still hope to pass a bipartisan bill later this year.
Republican lawmakers want to know why the IRS destroyed 30 million documents. House Committee on Oversight Reform member Rep. James Comer and Civil Rights and Civil Liberties Subcommittee member Rep. Nancy Mace are troubled over the Treasury Inspector General for Tax Administration's report on the documents’ destruction and plan to review "allegations of potential misconduct" connected to it.
A new anti-inflation plan. The center-left The New Democrat Coalition has a 24-page plan to ease inflation. The group of 98 Hill Democrats would lower tariffs, enhance the Child Tax Credit, expand job training programs, increase immigration, and expand clean energy subsidies.
Summertime and the driving won’t be easy in West Virginia. GOP Gov. Jim Justice decided against calling a special legislative session to pass a gas tax holiday. He says the Republican majority, which blames President Biden for rising gas prices, opposes the idea. Democrats want to suspend the state’s 36-cent-per-gallon tax but Justice does not want to align himself with Democrats.
Will it be easier in Massachusetts? Gov. Charlie Baker says “the state can certainly suspend the gas tax,” as revenues are “incredibly strong.” Connecticut suspended its gas tax, but Massachusetts lawmakers say it has made little difference. Despite its tax holiday, the average price of a gallon of gas in Connecticut is only 8 cents lower than in Massachusetts.
The sailing might feel less smooth in Barcelona… The Spanish city soon will impose a new tax on tourists who arrive by cruise ship. All visitors currently pay $1.19 in tax to stay of up to 12 hours and $3.20 for longer, and $1.90 for hotel bookings. The new tax will be set in coming weeks. Cruise ships are responsible for much of the city’s heavy pollution and overcrowding.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
Posts and comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
- © Urban Institute, Brookings Institution, and individual authors, 2022.