President Joe Biden wants higher taxes for big corporations and high earners to "support investments in the U.S. economy" as well as tax relief to ensure that low-income and middle-class families "are not paying more than their fair share," a top White House economic aide said Tuesday.
Deputy Director of the National Economic Council Bharat Ramamurti speaks during a daily press ... [+] briefing at the James Brady Press Briefing Room on March 9, 2021, in Washington, D.C.
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Here's how the $10,200 unemployment tax break works
Millions of Americans who collected unemployment benefits last year got a new tax break from the American Rescue Plan.
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President Joe Biden signed a $1.9 trillion Covid relief bill Thursday that waives federal tax on up to $10,200 of unemployment benefits an individual received in 2020.
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The new stimulus plan could affect your 2020 taxes. Here's how
As welcome as the American Rescue Plan is for many people, the fact that it was signed into law in the middle of tax filing season raises a number of questions.
That's because some provisions may affect how you should prepare your 2020 tax return, including calculating the size of your refund. And nearly 56 million people have already filed as of March 5.
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The main provision in the latest Covid relief package that affects 2020 taxable income applies to those who received unemployment compensation last year.
Huge fight looms over raising taxes | TheHill
Biden last week signed a $1.9 trillion coronavirus relief package that was mostly deficit-financed. The White House and congressional Democrats are now turning their attention to another economic recovery package, possibly focused on infrastructure, jobs and climate change. A key question will include if and how to pay for such a proposal.
Biden proposed a slew of tax increases during his presidential campaign that are expected to be on the table as part of the discussions. But they will face fierce opposition from Republicans and business groups, jeopardizing any attempt to pass an economic package on a bipartisan basis.
Not to change the topic here:
Anxious Americans to pay debt, taxes with COVID-19 stimulus checks | Reuters
(Reuters) - Michael Johnson, a construction worker in Washington, D.C., is waiting for the $1,400 check from the government promised after U.S. President Joe Biden signed the $1.9 trillion COVID-19 relief bill last week.
He's not planning a spending spree. He's nervous. "I'll try and get ahead on my mortgage a little bit. You know, we are still in this pandemic," Johnson, 45, said.
Almost 900 miles away in Baraboo, Wisconsin, Aric Nowicki runs a heating and air conditioning business that takes in about $150,000 annually but has expenses of about $100,000. He has clients who are late on their bills, and he plans to use his money to pay his own overdue bills.
child tax credit: this calculator shows how much you'll earn
Although many Americans are anxiously awaiting the latest $1,400 stimulus payment, it's families who stand to gain the greatest amount of financial assistance through the American Rescue Plan Act.
The latest $1.9 trillion Covid-19 relief package expands and enhances the child tax credit. Under the new provisions, families are set to receive a $3,000 annual benefit per child ages 6 to 17 and $3,600 per child under 6 in the tax year 2021.
The credit will be fully refundable. Right now, if taxpayers' credit exceeds their taxes owed, they only can get up to $1,400 as a refund. Under the new rules, they could receive the full $3,000 or $3,600 per child, depending on the child's age.
Biden's expanded child tax credit would be dramatic change for many Americans, experts say
The credit raises the maximum annual benefit level for many families to $3,600 per child under age 6 and to $3,000 per child ages 6 to 17, from $2,000 per child under 17. It will provide most parents with a monthly allowance, instead of a lump sum during tax season, creating a guaranteed income for families with children.
Beginning as early as July, families could begin receiving up to $300 a month per child under age 6 and $250 per child under 18.
Excise Taxes | Excise Tax Trends | Tax Foundation
Excise taxes are a well-established part of governments' taxation of consumption both in the United States and globally. [1] Excise taxes, which are levied on specific goods or services, are commonly levied on tobacco, alcohol, and motor fuel. Perhaps contrary to their reputation, excise taxes contribute a relatively small portion of total taxes paid in the U.S.
The Internal Revenue Service defines an excise tax as a tax "imposed on the sale of specific goods or services, or on certain uses." [3] By definition, these taxes are distinguished from broad-based consumption taxes by being selective in nature. That narrow base must be justified by unique costs or considerations related to the taxed activity; otherwise, these would just be arbitrary taxes.
Happening on Twitter
The American people want their jobs back, not increased taxes! https://t.co/feWYJlCTHk ACTforAmerica (from Washington, DC) Tue Mar 16 14:49:06 +0000 2021
Americans are getting hit with a pandemic, and now they want to raise our taxes?! https://t.co/pJLUi0WHX3 NickAdamsinUSA (from Dallas, TX) Tue Mar 16 14:43:05 +0000 2021
President Joe Biden wants higher taxes for big corporations and high earners https://t.co/dyggcFlTCk by… https://t.co/P26zWmRRy5 Forbes (from New York, NY) Tue Mar 16 21:18:06 +0000 2021
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