Poll: A slim majority wants the debt ceiling raised without spending cuts. A new NPR/PBS NewsHour/Marist poll shows 52 percent of respondents want Congress to raise the debt ceiling to prevent a default and separately consider spending cuts. There is no agreement between President Biden and Speaker McCarthy (R-CA) on how to raise the cap.
Tune in today at 2 p.m.: Lessons from the Child Tax Credit and next steps for states. Since the temporary extension of the CTC in 2021, 14 states have adopted or expanded refundable tax credits, and additional states are considering similar proposals. New research sheds light on how families used the expanded CTC, how the benefits affected children’s outcomes, and how those effects varied by race, ethnicity, income, and geography. Join the Urban Institute, Berkeley Opportunity Lab, and TPC for a virtual event this afternoon.
Hoosiers will see income tax cuts sooner than expected. State lawmakers approved income tax cuts last year that are expected to take effect in 2029, assuming the state will meet revenue targets. Lawmakers subsequently removed that benchmark requirement, and now the full tax cuts will take effect in 2027. The Indiana Chamber of Commerce notes that the cuts will make Indiana’s income tax rate the lowest in the nation.
Tax fraud in the Massachusetts lottery. Between 2011 and 2020, the father and son participated in a scheme to buy discounted winning lottery tickets from people who did not want to claim the prizes from the state lottery commission, which then withheld taxes and child support payments before the prizes were paid. They illegally claimed 14,000 winning Massachusetts lottery tickets and paid more than 40 lottery agents to process the transactions, and used fake gambling losses to evade federal income taxes and obtain fraudulent tax refunds. They will now serve prison time for the scheme and have been ordered to pay nearly $6.1 million in restitution.
Apple and Ireland have appealed the EU’s $14 billion tax ruling. The tech giant and the Irish government argue that the European Union’s antitrust watchdog erred when it concluded that Apple received an unfair tax break from Ireland and owed an extra $14 billion in back taxes. Apple’s lawyer, Daniel Baird, told the Court of Appeal that the commission “simply got the facts wrong about what was going on in Ireland,” according to Bloomberg. European Commissioner for Competition Margrethe Vestager has made it a priority to challenge the tax breaks provided by EU member states to multinational firms.
Japan may reconsider free trade program for foreign visitors. Visitors to Japan who stay for less than six months do not pay consumption tax on purchases. But the Japanese government may move to a program where these visitors pay a consumption tax and later apply for a refund. There have been increasing instances of tax-free items being sold overseas for profit including taxes.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deductions. Sign up here Get it delivered to your inbox by 8:00 a.m. weekdays (only on Mondays when Congress is in recess). We welcome tips on new research or other news. Email to Renu Zaretsky [email protected]ter.org.