Republicans push for a month-long continuing resolution. GOP lawmakers insist the government funding bill should include more funding for the military than for domestic programs. In recent years, Congress generally split discretionary funding evenly in year-end spending bills. Some Republicans say they want a short-term continuing resolution that will run to mid-January, when the GOP takes control of the House. Democrats continue to push for either an omnibus spending bill or a one-year continuing resolution. The government will shut down without some agreement by Dec. 16, though lawmakers could delay that deadline by at least another week.
Does the child tax credit reduce child poverty or discourage work? And should parents get the full tax credit only if they have jobs? TPC’s Elaine Maag reviews evidence on how the credit affects people’s willingness to work, an issue economists and policymakers continue to debate. But Elaine concludes, “We know with more certainty that while monthly payments for the CTC were being delivered between July and December 2021, immediate measures of hardship among families with children declined.” She says the expanded CTC is a bargain: “We often lose sight of the fact that investments in children can reap big rewards – not just for children themselves, but for society.”
IRS gives. IRS takes away. Credit cards and mortgages are not the only places Americans are seeing rising interest rates. IRS interest on underpayments of tax will rise to 7 percent starting on Jan 1. Interest for large corporations will increase to 9 percent. The only good news: IRS will pay 7 percent interest to filers who overpay their taxes.
Florida lawmakers are making up with Disney. Under pressure from Gov. Ron DeSantis, the legislature voted to strip Disney of its special tax status after the firm—under the leadership of former CEO Bob Chapek—criticized Florida’s “Don’t Say Gay Bill.” For 55 years, Disney governed 25,000 acres around its Orlando theme parks, taxing itself to fund services like water, power, and firefighting. In April, the legislature repealed that special status. Now that Robert Iger has returned as Disney CEO, lawmakers are expected to restore the company’s “Florida tax magic.”
Preparing for a battle for new funds from Massachusetts’ “millionaire’s tax.” Unions and other members of the Higher Ed for All Coalition are demanding that public higher education receive new funding from the 4 percent surtax on personal household income over $1 million that voters approved in November. Massachusetts budgeted $1.6 billion for its Department of Higher Education this year, an increase of $200 million over last year. But the coalition argues that it’s not enough. They say state funding for higher ed fell by $2,500 per student between 2001 and 2020, while costs increased by $6,500.
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