This is a representation photo showing home keys as House and Senate made two separate bills on Texas Property Tax Relief. (Photo by Maria Ziegler on Unsplash)
As the tax season approaches, taxpayers across the country are scrambling to prepare their returns and hoping for some relief through deductions, credits, and tax relief leads.
However, lawmakers are also looking to prioritize their tax relief leads to help boost the economy and support individuals and businesses impacted by inflation.
Tax Relief Leads: Oklahoma Gov Urges Lawmakers to Find Other Ways to Boost Tax Credits
The governor of Oklahoma mentioned in The Ada News that lawmakers to find more tax relief leads as they may not have the funds to pay for tax credits for private schools or school vouchers while still providing citizens with tax breaks on their groceries or income taxes.
Gov. Kevin Stitt said that among the three tax relief lead ideas, he would give the Parental Choice Tax Credit Act by House Republicans first priority. With an estimated cost of up to $300 million, it would provide tax relief to the families of around 60,000 private and homeschooled pupils.
Nevertheless, a critic on Monday questioned why the Republican governor would support a proposal that would reduce taxes for the majority of people instead of one that would favor a school choice program that benefits a minority of citizens.
ALSO READ: Oklahoma School Choice Bill Approved; Who Is Qualified?
Still said (via Muskogee Phoenix report) that the school choice law is great because it will open up many additional schools and provide parents with more choices.
The proposal would provide a $2,500 tax credit to parents of homeschooled youngsters, and a $5,000 credit to parents of children enrolled in private institutions. The credit might be used by those parents to cover expenses, including tuition, tutoring, textbooks, standardized exams, and concurrent enrollment in a higher education facility.
But, Stitt also said that he doesn’t want to expand government and is instead focused on returning money to consumers to broaden Oklahoma’s tax base as one of the tax relief leads. A drop in income taxes, a permanent or temporary reduction in the food tax, or a combination of the two, he argued, may accomplish that.
What American, Lawmakers Should Prioritize
According to tax experts, there are several tax relief measures that would be particularly helpful to struggling Americans. Here are some of the top recommendations:
- Expanded Earned Income Tax Credit (EITC): Experts told Bangor Daily News that EITC is a tax credit that benefits low- and moderate-income workers. Experts recommend expanding the credit to provide more relief to those who need it most.
- Child Tax Credit (CTC): CNet pointed out that the CTC is another tax credit that benefits families with children. Lawmakers recently expanded the credit as part of the American Rescue Plan, but experts say more could be done to ensure that families receive the full benefit.
- State and Local Tax (SALT) Deduction: The National Association of Counties explained that SALT deduction allows taxpayers to deduct state and local taxes from their federal tax bill. Experts recommend reinstating the full deduction, which was capped under the 2017 tax law.
These are just a few of the tax relief leads that experts recommend. However, there is debate over which measures should be prioritized and how they should be implemented. Lawmakers will need to carefully consider these issues as they work to provide relief to struggling Americans.
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