All Eyes On The Senate

The Senate returns this week with a long to-do list. The Senate first will consider an annual defense bill, then measures to prevent a government shut down and a debt limit breach. Later in December it will address—and certainly change—the House-passed Build Back Better Act (BBB). Will Congress get all of this done before the month ends? 

There’s a better way than the House’s book income tax to raise revenue from businesses. TPC’s Howard Gleckman outlines an idea suggested by MIT accounting professor Michelle Hanlon: Allow firms to take only part of the value—say 80 percent—of their deductions and credits. While not perfect, it would prevent firms from using tax preferences to pay little or no tax while avoiding many of the pitfalls of the book income tax. 

Tax credits for a free press? The New York Times takes a look at the House’s BBB provision that would provide$1.67 billion in payroll tax credits over the next five years for local news organizations, including newspapers, websites, and radio and TV stations. Eligible organizations could claim up to $25,000 for each local journalist they employ in the first year, and up to $15,000 in each of the next four years. 

New York State considers tax help for local news, too. Two state lawmakers have proposed tax credits for  local newspapers, digital publications, and their readers. Subscribers could claim a tax credit for as much as 80 percent of their costs, up to $250, in the first year, and 50 percent in subsequent years. News organizations that employ full time local journalists would get a tax credit of up to 50 percent of their first-year salary and 30 percent for the next four years. 

It’s official: President Biden nominates Shalanda Young to head OMB. Young has effectively led the budget office as the deputy director of the Office of Management and Budget since March. Young is a former Democratic staff director for the House Appropriations Committee. 

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].