The push to eliminate taxes on tips for service and hospitality workers gains momentum, with Vice President Harris backing the cause. In a recent rally in Las Vegas, Harris vowed to increase the minimum wage and scrap taxes on tips for workers in the service industry. This move aligns with previous calls by former President Trump and recent legislative efforts by Republicans in the House and Senate to make this a reality. Even Democrats in the Nevada congressional delegation are throwing their support behind this initiative.
Delving deeper into Harris’s tax agenda, five key questions emerge that her economic policy platform is expected to address. These questions, posed by TPC’s Nikhita Airi, range from potential tax increases to the extension of tax cuts from previous legislation. As the campaign trail heats up, Minnesota Governor Tim Walz’s tax policy record also comes into focus. TPC’s Richard Auxier sheds light on Walz’s tax policies, including the child tax credit expansion, tax exemptions for Social Security income, corporate tax increases, and more.
In the realm of budget and tax policy, the issue of reducing government debt looms large. TPC’s Bill Gale and Tayae Rogers examine the historical context of debt reduction efforts, emphasizing the need for substantial and sustainable policy changes to address the current debt problem. On a different note, the Child Care Affordability and Availability Act proposed by Sens. Tim Kaine and Katie Britt introduces a provision to expand the Employer-Provided Child Care Credit, potentially benefiting both employers and parents seeking affordable child care solutions.
In a significant development, Connecticut announces its participation in the IRS Direct File program for federal tax returns in the upcoming filing season. This move, championed by Treasury Secretary Janet Yellen and Democratic Gov. Ned Lamont, reflects a broader initiative by the IRS to streamline tax filing processes across all states. However, opposition from Congressional Republicans could pose a challenge to the program’s full implementation.
As Congress takes a break from its regular sessions, the Tax Policy Center’s Daily Deduction will continue to provide updates on tax news on Mondays and special occasions. Stay informed by subscribing to the Daily Deduction for the latest updates delivered to your inbox. Don’t miss out on crucial tax policy developments – sign up today.
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