“The Waiting [Remains] The Hardest Part…”*

CBO: Manchin-Schumer compromise would decrease the deficit by $100 billion over ten years. The Congressional Budget Office estimates that the reconciliation bill would cut the deficit by far less than had been initially projected. Democrats earlier estimated the plan would cut the deficit by more than $300 billion, but CBO noted its estimate does not include the potential revenue gains from enhanced IRS enforcement.

Will Sen. Sinema support the Manchin-Schumer compromise? The Arizona Democrat has yet to indicate whether she backs the Inflation Reduction Act. She has said that her decision could not come before the Senate parliamentarian determines whether the provisions in the bill can be passed through the budget reconciliation process. She also seeks to maintain the treatment of carried interest and reduce the scope of the 15 percent corporate tax on large corporations. 

Former Treasury secretaries back the compromise reconciliation bill. Timothy Geitner, Jacob Lew, Henry Paulson, Robert Rubin and Lawrence Summers cosigned a statement supporting the Inflation Reduction Act. “The extra taxes levied on corporations do not reflect increases in the corporate tax rate, but rather the reclaiming of revenue lost to tax avoidance and provisions benefitting the most affluent,” the statement says. 

Big automakers are trying to change the compromise bill’s EV tax credit provision. The likes of Ford, General Motors, and Toyota want the electric vehicle provisions tweaked. The current proposal sets new limits on how much electric vehicles can cost, how much income their buyers can earn, and where the batteries and vehicles are made. “It looks like companies won’t be able to use them in the short run,” said Sen. Debbie Stabenow (D-MI).

Should states impose excise taxes on crypto mining to help the environment? Crypto mining requires a tremendous amount of energy, and in the US, over a third of that energy is carbon-based. TPC’s Tax Hound considers whether US-based crypto miners should face heavier regulation of their energy use, pay a tax on their electricity use, or receive tax incentives for using renewable energy. All told, there may be an easier option. 

California Gov. Newsom backs extension of film and television tax credit. The Democratic governor endorsed legislation that would extend the tax credit available to film and television makers through 2030, beyond its original expiration date of 2025. The extension will cost the state $1.65 billion.

Rep. Jackie Walorski passed away. The Republican congresswoman from Indiana, her staff members Emma Thomson and Zachary Potts, and the driver of another vehicle died in a two-car accident yesterday afternoon. Rep. Walorski served on the House Ways & Means Committee and was set to take on a leadership role on the committee if Republicans took back the House in November. She would have overseen the worker and family support subcommittee. She was elected to the House in 2012.

*The Waiting, by Tom Petty.

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