Treasury clears states to cut taxes — but not with stimulus

The Biden administration said in a response to concerns raised by Republicans that state governments accepting pandemic-relief money from Washington are allowed to cut taxes, but only if they don’t use the federal aid to offset those reductions. ]] Original Article Posted at : https://www.accountingtoday.com/articles/treasury-clears-states-to-cut-taxes-but-not-with-stimulus

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Scoping out Biden’s legislative and tax agenda

Experts read the tea leaves in the American Rescue Plan and other early hints of the administration’s revenue proposals. ]] Original Article Posted at : https://www.accountingtoday.com/news/scoping-out-bidens-legislative-and-tax-agenda

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Making the Expanded Child Tax Credit Permanent Would Cost Nearly $1.6 Trillion

Families with children will see a significant increase in their maximum child tax credit (CTC) in 2021 thanks to the American Rescue Plan Act (ARPA) expanding child-related tax benefits. President Biden is now exploring how to make the ARPA’s temporary expansion of the CTC permanent. Whether and how lawmakers choose to finance a permanent expansion…

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IRS to automatically process refunds on jobless-benefit payments

The IRS will automatically process refunds for individuals who paid taxes on their unemployment benefits before Congress passed a law making those payments tax-free, Commissioner Chuck Rettig said. ]] Original Article Posted at : https://www.accountingtoday.com/articles/irs-to-automatically-process-refunds-on-jobless-benefit-payments

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TCJA Is Not GILTI of Offshoring

Democratic members of Congress are interested in changing tax rules for foreign earnings of U.S. multinational companies. They claim the current rules incentivize U.S. businesses to outsource and offshore what would otherwise be U.S. jobs and investment. However, closer inspection shows these claims do not fit with the way the rules have been working. Some…

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