Posted on 06/19/2023 9:04:46 PM PDT by SeekAndFind
Cost is an issue because Republicans expressed concern during recent debt limit negotiations over spending and budget cuts. As you likely heard, the recently enacted McCarthy-Biden debt ceiling legislation keeps nondefense discretionary spending relatively flat until after the 2024 election. That agreement also:
As a result, it will be interesting to see whether Congress can agree on a year-end 2023 tax package. In the meantime, here's an overview of some of the tax issues addressed in the House GOP proposals.
One of the tax issues addressed in the House GOP tax proposal deals with research and development (R&D) tax credits.
Toward the end of last year, there were discussions among Democrats and Republicans regarding support for R&D relief and the reinstatement of the expanded child tax credit, which has been shown to reduce poverty in the U.S. However, talks were stalled due to the high cost of reinstating the child tax credit and other issues, such as a work requirement proposed by Republicans.
So, while R&D expensing is something that could potentially gain bipartisan support, it's likely that some significant expansion of the child tax credit will need to be included in any year-end tax deal to gain the approval of the Democrat-led U.S. Senate.
A provision to provide relief for those affected by the 1099-K rule could gain some bipartisan support.
It should also be noted that the Coalition for 1099-K Fairness, which is made up of online marketplaces like eBay, PayPal, and Etsy, has been advocating for Congress to take action over the past year. They are hoping for legislation that will raise the 1099-K threshold, which would benefit "casual sellers" — millions of people who receive smaller payments through third-party networks but have not received 1099-K forms in the past.
Before details of the bills were released, it was unclear whether House Republicans would propose making TCJA tax cuts permanent in a package so close to contentious debt limit negotiations. That was especially true since the Congressional Budget Office has estimated the cost of making the TCJA cuts permanent to be about $3.5 trillion over the next 10 years.
Cost Money, that is a lie. Every time Taxes ate cut, the Goverment gets big Revenues.
It’s all for show. Modest amounts that will never get past the Senate le5 alone have a snowball’s chance in Hell of being signed by the President, and forget about overriding a veto. This is pre primary campaign advertising.
I’d like to hope this gets through, but you are correct in your analysis…
1099-K relief for casual online sellers.
Yay...that $600 limit was a gift from your friendly dumblecrats, the party of the little guy...
Not just on line sellers, either...
Folks don’t yet grasp just how hard those 1099 regulations will be if they are not changed.every cash app transaction is subject to the cumulative $600 limit. Venmo among friends for rent or concert tickets. Tips to waitstaff...anything using a digital method of payment that can be tracked will be tracked and subject to tax.
The hue and cry will be large, loud and costly.
They’d be better off making the middle class tax cuts permanent. Why they let the rich have permanent cuts but gave middle class has a sunset is beyond me.
The party of stupid. The only arrow in their quiver. Instead of attacking the spending side of the equation they hand things over to the Dems by tax cuts again. (Tax cuts for the rich.)
Why would the Republicans think they can get anything past? After all, they threw the leverage they had completely out the door by agreeing to raise the debt ceiling without very little in return.
The debt ceiling bill highlighted either:
1) A complete lack of competence and misunderstanding on how to negotiate.
2) The presence of the uniparty and the theater it presents to the American people.
No bipartisan support unless you gang bang some rich people.
My bother in law has his own business and his own CPA (been using him for over 11 years). His CPA said that the 1099 will not affect “normal, everyday usage like him paying me $80, per month to share my satellite internet service”.
I asked him, how does the IRS KNOW that is something as simple as him paying me half my internet service charge...I can see the IRS demand he explains why he is not issuing a 1099 to me for my payments. And on my end, I can see them asking why I am not claiming that as income on my end.
Even if his CPA is correct and it comes out in the wash, my BIL and I are going to go through the dang wringer with the IRS before it is all said and done (pun intended)!!
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