Can the House compromise on a $1.1 trillion spending bill?
News from the Hill:听础听听is expected to be released today. The House is scheduled to vote on the bill tomorrow and then adjourn for the year. The Senate will likely vote on Thursday, just hours before the December 11 deadline. The package will听 fund most of the government through next September 30. But the Department of Homeland Security, which has jurisdiction over immigration enforcement, will be funded separately, and for just a few months. As for those expired tax breaks? The Senate听.
Meanwhile, the IRS Oversight Board Report is out.听础濒尘辞蝉迟听听say they find it unacceptable to cheat on taxes. More than 25 percent were unsatisfied with the service they received from the IRS. The compromise spending bill Congress is about to pass is expected to provide about $10.9 billion for the IRS, a 5.5 percent cut in funding.
Did Pennsylvania鈥檚 newly elected Governor miss the mark?听When it comes to a proposed new severance tax on natural gas drillers,听. This could stymie his campaign promise to fund Pennsylvania schools and address the state鈥檚 budget shortfall. He had expected the new tax would raise more than $1 billion. But a production boom has depressed prices, to the point where a 5 percent severance tax would now produce between $525 million and $675 million a year. Prices could rebound, but perhaps not soon enough.
Will a challenge to Colorado鈥檚 Internet tax law head to federal court?听Colorado鈥檚 Supreme Court听听on a state law that requires online retailers to notify customers who spend more than $500-a-year that they owe state sales tax on their purchasers. Fair?听听don鈥檛 think so: They鈥檝e been challenging the law since 2010.
A whistleblower contends Vanguard鈥檚 transfer pricing methods kept its taxes artificially low.听The huge mutual fund firm听says the Securities and Exchange Commission allows it to charge its own funds at-cost prices for management services. Such transactions between related businesses, or transfer pricing, are supposed to be completed at fair market value.听,argues that the SEC order applies only to securities law, not taxes, and Vanguard鈥檚 pricing has cost taxpayers more than $1 billion. His suit may get a hearing early next year.
Nice try, but it needs some work.听That鈥檚 how Brookings Institution鈥檚听听the听, co-sponsored by GOP Senator Mike Lee. 鈥淓fforts to simplify the system, to eliminate many deductions, and to reach out to the struggling middle class鈥� are commendable, she says. 鈥淏ut without modifications this legislation is regressive, balloons the deficit, and is oddly motivated to boot.鈥�
Don鈥檛 forget: Tune in today for a webcast on state and local pension reform.听Public employee retirement plans face a $2 trillion nationwide deficit. 础听听will examine the funding of state and local pensions and assesses various reform options. You can听.
Interested in subscribing to听, the听听summary of the day鈥檚 tax news? Sign-up听听for free access. If you鈥檇 like to tell us about a new research paper or have any comments about our new feature, write us at听dailydeduction@taxpolicycenter.org.
The post听听appeared first on听.
