TaxWatch: ‘Voters are looking for help’: With control of Congress is still too early to call, here are 3 burning tax questions

by | Nov 9, 2022 | Stock Market

A day after midterm elections, it remains uncertain whether either party will end up with Congressional control or whether it will be a divided Congress — and that has consequences for these tax questions. What happens next for taxes are no idle matter in an election where rising costs and high inflation weighed heavily on voters.

Here are 3 those burning tax questions: • What are the chances of future tax-law changes in 2023 and 2024? • Can Democrats and Republicans agree to another round of child tax credit payments before the end of the year? • Does the Internal Revenue Service get to keep its recently-enacted $80 billion infusion to bolster enforcement and improve taxpayer service? House and Senate control teeters on a razor’s edge as counting continues in tight races. Georgia’s Senate campaign is going to a Dec. 6 runoff election. Neither Democratic incumbent Raphael Warnock nor Republican challenger Herschel Walker were poised to win more than 50% of the vote. However, the midterms offered some tax clarity, at least at the state level. California voters rejected a ballot measure that would have tacked an extra 1.75% tax on households making at least $2 million. If Proposition 30 passed, the top rate for California’s income taxes would have gone from 13.3% to 15.05%. On the other hand, Massachusetts voters backed their own millionaires tax. The measure will add an extra 4% surtax for households making at least $1 million. That goes on top of the 5% state’s flat 5% income tax. Here’s a deeper dive on those 3 outstanding tax questions:1. What about new tax laws in 2023 and 2024? Here’s where the Georgia run-off race could really loom large — especially as recession worries keep sticking, observers noted. It might sound unlikely, given the latest results in race for the House, but let’s start with the chance that Democrats keep majorities in the House and Senat …

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