New Internal Revenue Service (IRS) guidelines for the federal electric vehicle (EV) tax credit are a “recipe for fraud,” warns the head of the Tax Foundation.
Consumers will now be able to automatically claim the tax credit at the point of sale on new or used EV purchases, rather than wait to claim it on their tax return, according to the latest Treasury Department guidance.
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Pennsylvania state representatives this week passed legislation creating a state version of the Earned Income Tax Credit (EITC).Â
The federal EITC, which went into effect in 1975, is designed to incentivize work. It ranges from $560 to $6,935 and goes to households earning up to $59,187. The proposed state-level counterpart would allow low-wage earners to claim 25 percent of the federal credit on their Pennsylvania taxes. Thirty-three states and the District of Columbia offer a similar credit.
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Two Pennsylvania state Senators from opposite sides of the aisle are asking colleagues to support legislation they are drafting to create a state earned income tax credit (EITC).Â
For nearly a half-century, lower-wage workers have benefitted from a federal EITC which ranges from $560 to $6,935 for a household earning up to $59,187, depending on the number of that filer’s qualifying children. In 2021, this program bestowed $1,874 on the average Pennsylvania family.
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The Virginia House of Delegates passed Governor Glenn Youngkin’s bills to cut the business tax rate from six to five percent and the top individual income tax bracket from 5.75 to 5.5 percent. The two bills would also increase individual and business income tax deductions.
“Virginians are still overtaxed, they deserve to keep more of their hard-earned paychecks and today’s significant move by the House of Delegates means Virginians are one step closer to additional relief,” Governor Glenn Youngkin said in a release after the bills passed out of the House on Wednesday.
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RICHMOND, Virginia — Governor Glenn Youngkin spoke at a small rally on Monday where he shot hoops with children and called for his supporters to pressure their legislators to support the tax relief package included in his budget amendment proposal.
“We can pay for this. We have an expected surplus. We’re projecting continued excess revenues. We can afford this and we can still invest in a record education budget. We can still invest in the transformation of our behavioral health system. We can still invest in law enforcement. We can still invest to make government work for you,” he said.
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RICHMOND, Virginia — Governor Glenn Youngkin continued his call for tax cuts, changes to education policy, and increased funding for law enforcement as part of his Wednesday State of the Commonwealth address; he described his first term as a reversal after his Democratic predecessors, and called on legislators to “press the accelerator.”
“I am here this afternoon to communicate that the state of our Commonwealth is substantially better than it was last year,” he said to applause. “We are still a great distance from our destination. A destination where Virginia truly is the best place to live, work, and raise a family. I’m here this afternoon to urge us to accelerate our efforts to get more done and to get it done faster.”
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Arizona Republican Gubernatorial Candidate Karrin Taylor Robson recently unveiled her economic relief plan, which she would enact if elected as Arizona’s next governor.
“As we’re seeing today, Joe Biden’s inflation is a disaster for Arizona families. I’ve put together an economic plan which focuses on working families – and how we can best set them up for success,” tweeted Robson.
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Virginia’s FY 2023-2024 budget includes some wins for both businesses and workers, according to pro-business organization NFIB Virginia and pro-labor organization Virginia AFL-CIO. General Assembly negotiators have emphasized the compromise nature of the budget, but flashy proposals on tax relief, education, and law enforcement have gotten most of the attention.
“Governor Youngkin and legislators agreed on many issues that are important to Virginia’s small business, including full funding of the commonwealth’s unemployment insurance program, but we’re disappointed that so some key issues didn’t make the final cut, like the three-month suspension of the fuel tax,” NFIB Virginia State Director Julia Hammond said in a press release.
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Connecticut Gov. Ned Lamont (D) and leaders of the Democrat-controlled General Assembly are touting a $24-billion budget deal for the next fiscal year that contains almost $600 million in tax reduction.
Most of the tax relief, however, will only remain in effect through the end of the year.
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At a Connecticut General Assembly hearing Thursday, state lawmakers clashed on visions of tax policy, with Republicans pressing for sales-tax reduction and Democrats advocating a mix of tax increases and targeted relief.
According to the nonprofit Tax Foundation, 12.8 percent of Connecticut residents’ income goes to government coffers, making the combined state and local tax take the second-highest in the U.S., just behind New York’s 14.1 percent overall burden.
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Arizona doesn’t have an Earned Income Tax Credit (EITC), which mostly gives straight cash to those who don’t earn enough money to obtain a state tax refund, but Gov. Doug Ducey wants to change that. He is supporting SB 1018, sponsored by Senator Sean Bowie (D-Phoenix), which would create one, joining 30 other states which have adopted one patterned after the federal EITC.Â
A state EITC would take $74 million from the state’s coffers annually and give it to low earners. In order to qualify, income levels would face the same ceilings as the federal credit. Both families and singles are eligible, with a family of four children earning $20,000 maxing out the most with $325.
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Continuing his “Thank You, Virginia” tour, Governor Ralph Northam announced that his upcoming budget proposal will include tax cuts and refunds, including some similar to those Governor-elect Glenn Youngkin has called on Northam to include in his budget.
“When Virginia cuts taxes next year, it should be done in a way that benefits working people,” Northam said in a Tuesday press release. “Many professionals made it through the pandemic fine, as their work simply moved online. But workers haven’t been so lucky when their jobs require close contact with other people. Some jobs simply can’t move online—restaurant workers, early childhood educators, home care attendants, and others—and we all depend on the people who do this work. Virginia can help working people by eliminating the state grocery tax, providing one-time rebates, and giving a tax break to people who are working.”
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