Is a spending deal around the corner? Speaker Nancy Pelosi signaled this week that she could support an agreement to ease permitting requirements for energy projects if it’s included in a Senate bill funding the government. The agreement, part of a deal to win Sen. Joe Manchin’s vote on the Inflation Reduction Act, still is opposed by some Senate Republicans and progressive House Democrats.
House Republicans have a tax plan for the 118th Congress. TaxNotes reports (paywall) that House Republicans are set to release their “Commitment to America” on Sept. 23. The tax section will focus on extending the Tax Cuts and Jobs Act individual rate cuts, the 20 percent rate cut on pass-through income, and bonus depreciation beyond 2025. Even if Republicans win majorities in both the House and Senate in 2022 and pass such a bill, it would be vetoed by President Biden.
Thanks to obscure state law, Massachusetts taxpayers will receive nearly $3 billion. A 1986 law limits state tax revenue growth to the growth of wages and salaries. Any excess has to be returned to taxpayers. The state hasn’t done so since 1976, when it gave back $29.2 million. On Thursday, the State Auditor certified state must return $2.94 billion.
Spain is open to windfall taxes on banks and energy companies. Government officials said yesterday they may amend a proposed bill on a windfall tax on banks and big energy firms to ensure the tax does not affect the country’s financial stability and aligns with other European proposals. It proposed a bank tax of 4.8 percent on net interest income and commissions and a tax on energy companies that includes a 1.2 percent tax on power utilities' sales.
No more sugar tax in the UK? Prime Minister Liz Truss is preparing to ditch the tax on soft drinks as well as other anti-obesity measures. The Tory government will deliver its mini-budget, including tax cuts, on Sept. 23.
The German government encourages tax-free payments to employees. It wants businesses to make one-time tax-free payments to employees of up to $3,000 to ease the burden of rising prices. Except it likely will boost consumption and raise prices.
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