ISO: A Speaker. House Republicans tried three times to elect a Speaker yesterday and adjourned after failing three times. They are expected to return at Noon today to try again. Front-runner Kevin McCarthy lost 19 Republican votes in the first two rounds and 20 in the third. Will McCarthy make more concessions to conservatives to try to win their support, or is it too late?
Dynamic scoring is back. New rules set by the incoming House Republican majority will require the Congressional Budget Office and Joint Committee on Taxation to include the macroeconomic effects of major legislation into official cost estimates used for enforcing the budget resolution and other rules. When dynamic scoring was used in past years, there was little difference in revenue estimates from traditional scoring.
And the “Gephardt rule” is gone. The new rules package also will require an explicit House vote to raise the debt limit. The old rules, named after former Rep. Dick Gephardt, automatically raised the borrowing limit whenever the House passes a budget that increases the deficit. The new rule helps set up a bloody fiscal battle when the current debt ceiling is breached later this year. The House will vote to approve these new rules after it picks a Speaker.
National settlement event heralded by the IRS. The IRS recently hosted a national virtual settlement event, resolving 44 tax disputes over four days. The cases involved taxpayers who are not represented by paid counsel but could receive free tax advice from Low Income Taxpayer Clinics run by volunteer attorneys from the American Bar Association and other pro bono organizations. In the past, the events have been regional. This time, taxpayers had the chance to connect with legal support all over the country.
India raises windfall tax on certain fuels. The Indian government raised its windfall tax on crude oil, petroleum, and aviation fuel. The tax on crude oil will climb from $20.55 per metric ton to $25.38. India is a major importer of oil, and has been purchasing crude from Russia at prices well below the $60 cap set by the West.
Italy approves a 26 percent capital gains tax on cryptocurrencies. Late last week, it approved a 2023 budget that includes a 26 percent tax on capital gains on crypto-asset trading over €2,000. Italy previously treated crypto assets as foreign currencies that faced lower taxes.
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