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Another State Ditches Its Death Tax While Potential Backdoor Federal Estate Tax Looms

Another State Ditches Its Death Tax While Potential Backdoor Federal Estate Tax Looms
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How Much Aid Do State and Local Governments Really Need?

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The $350 billion in state and local aid included in Democrats’ $1.9 trillion Covid relief package is proving to be another point of contention, even among Democrats. Several Democratic senators have reportedly pushed for changes to that portion of the legislation, fueled in part by concerns that states could respond to an infusion of more federal aid by cutting taxes instead of devoting the additional funding to pandemic-related needs.
“We could distribute billions to the states, and they turn around and lower taxes there are governors talking about that, and it’s not the point here … there should be a prohibition against voluntarily diminishing revenues,” Sen. Angus King (I-Maine), who caucuses with the Democrats, told The Washington Post last week. ....

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Now It's the Senate's Turn on Stimulus

Plus, how much aid do state and local governments really need?
Monday, March 1, 2021
Stimulus Update: Now It s the Senate s Turn
Democrats’ sprint to pass a $1.9 trillion Covid relief package ahead of the March 14 expiration of enhanced unemployment benefits is more akin to a relay race. The House of Representatives, as expected, approved the plan early Saturday morning, passing the baton to the Senate, where the legislation will face a fresh set of hurdles.
The final vote in the House was 219-212, with two Democrats, Kurt Schrader of Oregon and Jared Golden of Maine, joining all Republicans in voting against the bill. Democrats can’t afford even one defection in the evenly divided Senate. They’re using a budget reconciliation process that will allow the bill to pass with a simple majority vote, but all 50 Senate Republicans are expected to oppose the package. ....

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