Next Monday, Nov. 14: How should the IRS spend $80 billion? Join TPC in a virtual event that will explore how the agency can best invest its new funding and how to evaluate its success. The event kicks off at 3:00 pm with former IRS commissioners Fred Goldberg, John Koskinen, and Charles Rossotti. Then, three top government officials will talk about how their agencies likely will evaluate the new spending. Register and tune in here.
Who benefits from higher IRA and 401k contribution limits? TPC’s Howard Gleckman explains why raising maximum contribution amounts for inflation benefits high earners but does nothing for the vast majority of working-age Americans. Instead of automatic inflation adjustments, Howard suggests alternatives like increasing the saver's credit, expanding incentives for employers to set up retirement accounts for their workers, and making retirement accounts portable across jobs.
So much tax policy energy, so many empty calories. What makes a marshmallow taxable? The Tax Hound examines whether the puffy cube is tax-exempt food or taxable candy. It depends on the taxing jurisdiction, shape, ingredients, size, and function—as well as a consumer’s understanding of the product.
Massachusetts puts tax cuts on hold due to “financial uncertainty.” State House leaders are holding off on permanent tax relief including outgoing Gov. Charlie Baker’s proposed tax cuts for low-income households, renters, and estates. The debate will be passed on to the next legislative session and the new governor, who will be elected tomorrow.
France is ready for a minimum tax, with or without the EU. Finance Minister Bruno le Maire told Le Parisien that France (paywall) is ready to move ahead with a global minimum tax on corporations next year, even if a European agreement cannot be reached. Meanwhile, the Organization for Economic Cooperation and Development’s outgoing tax chief, Pascal Saint-Amans, told The Financial Times (paywall) that the US and Europe could spark trade wars and lose hundreds of billions of dollars in lost revenue if they fail to implement the global tax deal.
Congress is not in session, so the Daily Deduction will post Mondays only until Congress returns.
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.