GOP House tax plan will be released this week
The House will release a tax plan on Wednesday that would cut the top individual tax rate to 25 percent. Read on for the GOP's tax proposal and and teh rest of today's tax news.
Senate Finance Committee Chairman Sen. Max Baucus, D-Mont., left, and the House Ways and Means Committee Chairman, Rep. Dave Camp, R-Mich., talk about tax reform to 3M employees at the 3M Innovation Center in Maplewood, Minn. last year. Camp will present a tax plan Wednesday, Feb. 26, 2014 that would cut the top individual tax rate to 25 percent.
Hannah Foslien/AP/File
贬别谤别鈥檚听The Daily Deduction, the Tax Policy Center summary of the day鈥檚 tax news. We鈥檒l let you know about upcoming action in Congress, the Administration, and in the states and keep you up-to-date on the latest tax policy research. You can find The Daily Deduction on TPC鈥檚 blog听听or in the What鈥檚 New section of the听TPC . We鈥檒l also be distributing The Daily Deduction every morning by email to those who prefer to receive it that way. For the next few weeks, everyone on our email list will get The Daily Deduction. But to continue to receive it after March 15, please sign-up听. If you鈥檇 like to tell us about a new research paper or have any comments about our new feature, just drop us an email at dailydeduction@taxpolicycenter.org. We鈥檇 love to hear from you.
The House GOP offers its opening gambit in tax reform.听The plan, due to be released on Wednesday by House Ways & Means Committee Chair Dave Camp, would cut the top individual tax rate to 25 percent. However, it would also impose a 10 percent surtax on high-income households,听The Washington Post听.
The IRS is taking its lumps.听迟丑别听House Oversight Committee听has scheduled a hearing Thursday on proposed new IRS guidelines on political activity by 501(c)(4) non-profits. At the same time, Camp has warned the IRS that his panel might听subpoena听agency documents on its past handling of nonprofits鈥� tax-exempt status applications. Meanwhile, the IRS soldiers on,听that it has issued more income tax refunds听so far this year than last. And yesterday it released a report on听Criminal Investigation听that highlights increased enforcement against tax criminals and more convictions for identify theft.
Today the Senate Budget Committee 丑辞濒诲蝉听a hearing听on the 鈥淓conomic and Budget Outlook for Individuals, Families, and Communities鈥� following CBO鈥檚听budget outlook听released earlier this month. As you consider the budget, it鈥檚 worth听remembering听that individual income taxes may generate half of all federal tax revenue within a decade, comprising nearly all the projected rise in revenues.
New Jersey may see听a huge battle over taxes and state employee pensions this year.听听Governor Chris Christie is about to release a budget that may include broad tax cuts and reductions in public pensions. What do these retirement changes mean for a state鈥檚 ability to attract and keep good workers? Rich Johnson, Gene Steuerle, and Caleb Quakenbush explore that issue with New Jersey as a case study in this Urban Institute听.
Speaking of pension reforms, what if citizens could听鈥�see鈥� the financial health of public pensions? A new Blue Ribbon Panel report from the听听recommends more transparency. Its proposed liability measurement 鈥渨ould provide new insight into the market risks for pension plans and the shortfall that might have to be made up by local taxpayers if investment returns did not measure up to expectations.鈥�