As the clock ticks towards the imminent deadline, Congress has struck a deal to keep the wheels of the federal government turning until December 20th. In a whirlwind before their departure for Election Day, both the House and Senate swiftly passed a bill ensuring the continuity of government operations. This stopgap measure maintains current spending levels for nearly three months, easing concerns of a potential shutdown.
- Sens. Shaheen and Baldwin push for permanent enhanced premium tax credits:
- Sens. Jeanne Shaheen and Tammy Baldwin have proposed the Health Care Affordability Act, aiming to make permanent the expansion of premium tax credits (PTCs). Originally introduced under the Affordable Care Act, these credits were later temporarily expanded by the American Rescue Plan and the Inflation Reduction Act. The enhancements increased the value of credits for individuals with incomes ranging from 100 to 400 percent of the federal poverty level, while also broadening eligibility to those above 400 percent. However, these enhancements are set to expire at the end of 2025.
- Los Angeles sees an uptick in mansion tax revenue from luxury homes:
- With the implementation of Measure ULA, a real property transfer tax ranging from 4 to 5.5 percent on properties selling for over $5.15 million, the city is witnessing an increase in real estate tax revenue. Recent data from the Los Angeles Office of Finance reveals that a significant 46 percent of Measure ULA revenue stems from single-family home sales, with the remaining 54 percent attributed to other real estate categories, including office spaces, retail stores, and apartment buildings.
- Mississippi lawmakers eye phasing out state income tax cautiously:
- Despite the eagerness shown by Republican lawmakers such as Rep. Trey Lamar and Sen. Jeremy England to phase out the state income tax during the upcoming 2025 legislative session, a prudent approach is advocated. Sen. Josh Harkins recommends a gradual strategy to observe the impact of previous tax cuts before proceeding further, emphasizing the need to maintain essential state services.
- Tuscaloosa voters veto property tax hike for schools:
- In a recent referendum, Tuscaloosa City Schools’ proposal for a property tax increase to generate $17 million annually faced rejection from voters. The dissenters argued that a tax increase of approximately $230 for a $200,000 home was unwarranted, pointing out that education costs have surged threefold since the last tax adjustment in 1986.
As Congress takes a recess, the Tax Policy Center’s Daily Deduction will return to its regular schedule on November 11th, keeping an eye on the evolving tax landscape and policy changes. Stay informed by subscribing to the Daily Deduction for the latest tax updates delivered straight to your inbox every weekday at 8:00 am, with a hiatus on Mondays during congressional breaks. Share any breaking research or news tips with Renu Zaretsky via email for a chance to be featured in the newsletter.
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