Jason Smith will chair the Ways and Means Committee. House Republican leaders picked Rep. Jason Smith of Missouri. Smith was ranking Republican on the House Budget Committee. Considered a hard-right populist, he’s sponsored a bill to grant a $2,000 tax credit to unborn children and represents a shift from the free-trade, pro-business Republicans who led the committee in the past. He beat out Adrian Smith of Nebraska and Vern Buchanan of Florida. The GOP’s Steering Committee’s choice still must be approved by the full party caucus, but that is considered a formality.
House move to rescind new IRS funding would add $114 billion to the deficit. The House passed the House GOP’s plan to rescind most of the $80 billion in new IRS funding Congress approved last year. The measure will die in the Senate. The Congressional Budget Office estimates the bill would roll back about $71 billion of the $80 billion in new money. But by reducing funds for compliance, the bill would lose about $114 billion in revenue over ten years. The Center on Budget and Policy Priorities reports the IRS has fewer revenue agents now than in 1954.
CBO: House moves to rescind new IRS funding would add $114 billion to the deficit. The Congressional Budget Office estimates the bill that House GOP leaders say is their first legislative priority would roll back about $71 billion of the $80 billion in new IRS funding Congress approved last year. But by reducing funds for compliance, it would lose about $114 billion in revenue over 10 years. The Center on Budget and Policy Priorities reports the IRS has fewer revenue agents now than in 1954.
Virginia Gov. Youngkin wants $1 billion in tax cuts. The state expects a $3.6 billion surplus so the Republican and potential presidential candidate says tax reductions are affordable. The legislature approved $4 billion in tax cuts last fall. Youngkin now wants to cut the corporate tax rate and top individual income tax rate, and increase the standard deduction. The divided General Assembly opens its session tomorrow.
Colorado Gov. Polis calls for more property tax relief. Property taxes have soared with property values and the Democratic governor seeks more than $200 million in new cuts in the levy over the next two years, on top of $700 million the legislature already approved. Polis hasn’t specified a plan but wants the legislature to use $200 million in general fund money to cover any lost revenue for school districts and local governments.
Nebraska lawmaker: Tax “skill games” like slot machines. The number of slot machine-like video games has doubled since 2018 to nearly 4,000. State Senator Tom Briese will introduce a bill to tax skill games at the same 20 percent rate as slot machines. It would fund an estimated $20 million in property tax credits.
Pennsylvania lawmakers may vote to end automatic gas tax increases. The Senate Transportation Committee is considering a bill to freeze automatic gas tax increases. Sponsors say rising wholesale gas prices increased the state’s tax to 61.5 cents per gallon, second only to California. The committee may consider future legislation to create a mileage-based user fee on electric vehicles to fund transportation projects.
Ohio launches Beginning Farmer Tax Credit. The program aims to support retiring farmers and help new ones. It encourages older farmers to sell or rent their livestock, land, or equipment to those who are new to the industry and want farming to be a significant source of income. The carrot: a 3 percent income tax credit.
In Taiwan: Tax credits for chip makers. Taiwan will grant a 25 percent tax credit to local microprocessor manufacturers for research and development expenses. Last year, the US approved new tax and other subsidies for its domestic chip makers.
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.