Poll: Slim majority wants the debt ceiling raised without spending cuts. A new NPR/PBS NewsHour/Marist poll finds that 52 percent of respondents want Congress to increase the debt ceiling to avoid default and discuss spending cuts separately. There remains no agreement between President Biden and Speaker McCarthy (R-CA) on how to raise the limit.
Tune in today at 2:00 pm: Lessons from the Child Tax Credit and Next Steps for States. Since the temporary expansion of the CTC in 2021, 14 states enacted or expanded refundable tax credits, and additional states are considering similar proposals. New research is shedding light on how families used the expanded CTC, how the benefit affected outcomes for children, and how all these impacts varied by race, ethnicity, income, and geography. Join the Urban Institute, Berkeley Opportunity Lab, and TPC for a virtual event this afternoon.
Hoosiers will see income tax cuts earlier than expected. State lawmakers approved an income tax cut last year that is supposed to take effect in 2029, presuming the state reaches revenue benchmarks. Lawmakers subsequently removed that benchmark requirement, and now the full tax cut will take effect in 2027. The Indiana Chamber of Commerce notes the cut will make Indiana’s income tax rate among the lowest of those levied in the country.
Tax fraud in the Massachusetts lottery. Between 2011 and 2020, a father and son participated in a scheme to buy winning lottery tickets at a discount from people who did not want to claim their prizes from the state lottery commission, which then withholds taxes and child support payments before paying out prizes. They unlawfully claimed 14,000 winning Massachusetts lottery tickets and paid over 40 convenience store lottery agents to process transactions, and used fake gambling losses to evade federal income taxes and receive fraudulent tax refunds. They will now serve time in prison for the scheme and have been ordered to repay nearly $6.1 million.
Apple and Ireland appeal $14 billion EU tax ruling. The tech giant and the Irish government argue that the European Union’s antitrust watchdog erred when it concluded Apple received unfair tax aid from Ireland and owed an additional $14 billion in taxes. Apple attorney Daniel Beard told the appeals court that the commission “just got the facts wrong about what activities went on in Ireland,” Bloomberg reports. EU Competition Commissioner Margrethe Vestager has made it a priority to go challenge tax breaks provided to multinational firms by EU member states.
Japan may overhaul its tax-free shopping program for foreign visitors. Visitors to Japan who stay less than six months do not pay consumption tax on items purchased. But the Japanese government may shift to a program where those visitors pay the consumption tax and apply for refunds later. There have been a growing number of cases of tax-free items being resold overseas for profit at tax-inclusive prices.
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].
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