Wed, April 9: NBC’s Sahil Kapur: “Senate Republicans are inching closer to burying a bipartisan bill to expand the child tax credit and provide breaks for businesses, issuing a series of demands that would most likely disrupt the coalition that enabled it to pass the House. … [Senate Finance ranking member MIKE] CRAPO told NBC News on Tuesday that he still has problems with ‘a number’ of provisions,” reports Politico (emphasis added).
Thurs, March 8: Tax highlights from State of the Union:
- Increase the top corporate income tax rate to 28%.
- Raise the minimum corporate income tax rate to 21% up from the current level of 15% as set by the Inflation Reduction Act of 2022.
- Institute a minimum income tax of 25% for the wealthiest 0.01% of households.
- Raise the Medicare tax rate on incomes over $400,000.
- Eliminate the deductibility of compensation costs for salaries of more than $1 million a year.
- Raise the tax on stock buybacks to 4%, quadrupling the current rate of 1%.
- Increase the Child Tax Credit, restoring the refundable credit that was in place during the pandemic.
- Make permanent the enhanced subsidies for health insurance purchased on the exchanges created by the Affordable Care Act, which are currently scheduled to expire after 2025.
- Renew the 2017 tax cuts for those earning less than $400,000 a year, ending them for those who earn more.
- New $5000 tax credit for first-time home buyers.
Wed, March 6: The House-passed child tax credit and business extenders package continues to languish in the Senate, reports Politico.
Fri, March 1: Wall Street Journal reports that opposition from GOP Senators is holding up Senate action on HR. 7024, the Child Tax Credit and business extenders package, that passed the House 357-70.
Thurs, Feb. 29: CBO issued report: “How Changes in Funding for the IRS Affect Revenues.”
Wed, Feb. 14: The Rule to enable consideration of HR 7160, to increase the cap on the state and local tax deduction, failed 195-225.
Mon, Feb. 12: Politico reports that “a good number of Senate Republicans are trying to slow walk the bipartisan tax bill that sailed through the House late in January.”
Thurs, Feb. 1: House Rules Committee reported a closed rule for consideration of HR 7160, a bill to boost the cap on State and Local Tax deductions. Roll Call reports prospects for adoption of the rule to allow consideration of the bill are slim.
Wed, Jan. 31: House passed HR. 7024, the Child Tax Credit and business extenders package, 357-70 (under suspension of the rules, 2/3 required). In order to clear the way for passage, Speaker Johnson agreed to a separate vote, as early as next week, on relief from the cap on deduction of State and Local Taxes (SALT), reports Roll Call. The legislation now moves to the Senate, where the bill will require 60 votes for passage–a tall order in an election year. Politico reports that Senate Republicans want to toughen requirements for Child Tax Credit eligibility.
“Tax deal likely much more expensive than official estimate, experts warn,” reports The Hill.
Tues, Jan. 23: Ways & Means reported H.R. 7024, the Tax Relief for American Families and Workers Act of 2024. H.Rpt. 118-353. CBO estimate.
Fri, Jan. 19: Ways and Means Committee voted 40-3 to report a $78 billion package of tax extenders and revival of a slimmed down child tax credit expansion negotiated by Chairman Jason Smith (R-MO) and Senate Finance Chairman Ron Wyden (D-OR). The extenders include expensing of R&D, a more generous interest deduction, and expensing of business investments. The bill would be offset by accelerating expiration of the Employee Retention Tax Credit. The White House said the President will sign the bill if it clears Congress. Tax Policy Center Analysis