A Rate Increase; An IRS Conflict Of Interest?
Fed raises rates, finds banking system “sound and resilient.” In a unanimous decision, the Federal Reserve approved a quarter-point increase in the federal funds rate target range, aiming to bring inflation back down to 2 percent over the long run while still supporting maximum employment, according to its statement.
On Capitol Hill today. US Trade Representative Katherine Tai appears before the Senate Finance Committee. Meanwhile, the House Budget Committee will hear from Office of Management and Budget Director Shalanda Young.
No “direct file” tax return system, says Americans for Tax Reform-led coalition. The coalition of conservative groups says the government should not be helping Americans determine what they owe in taxes. Doing so would be a “conflict of interest,” they argue, since the IRS collects taxes.
Another try for the E-BIKE Act. Reps. Jimmy Panetta (D-CA), Mike Thompson (D-CA), Adam Schiff (D-CA), and Earl Blumenauer (D-OR) have reintroduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act. The bill would establish a refundable tax credit worth 30 percent of an e-bike’s price, capped at $1,500. The credit would apply to a new e-bike that costs less than $8,000. E-bike owners earning up to $150,000 for a single filer and $300,000 for joint filers would be eligible for the credit. The credit was ultimately dropped from the Build Back Better Act and was not included in the Inflation Reduction Act.
Texas Senate passes $16.5 billion property tax relief package. The legislation includes an increase to the state’s homestead exemption for school districts and requires the state to direct at least $5.38 billion into public schools. It also cuts school property tax rates by 7 cents per every $100 in property value. Some Senate Democrats voiced concern that the economy might not always be so strong and might require new revenue in the future, but none voted against the bill. The proposal now goes to the House, which has its own tax relief bill in the works.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].