Governor asked for tax data

To understand the impact of tax legislation now being debated in Congress, I have asked Governor Ralph Torres for data on how many Marianas tax filers use ten tax deductions or credits proposed to be cut, and the dollar value of each. House Republicans passed their bill, H.R. 1, on Thursday. The Senate is expected to act on its alternative later this month. Here is the complete list of credits and deductions I asked the Governor to help me with:

• Deduction for teachers, allows them to reduce their taxable income by up to $250 for professional training or classroom supplies. 1040CM, line 23.
• Deduction for moving expenses, important to encourage former residents and other U.S. workers to come to the Marianas for work. 1040CM, line 26.
• Student loan interest deduction, which helps reduce the cost of higher education.  1040CM, line 33.
• Dependent care cost credit, for families paying for daycare for children or who are caring for aging parents.  1040CM, line 49.
• Personal exemption, allows for $4,050 to be deducted from income for the individual taxpayer, their spouse, and each dependent. 1040CM, line 42.
• Senior exemption, increases the personal exemption by $1,550 for single filers and $2,500 for married couples.  1040CM, line 39.
• Adoption tax credit, allows taxpayers to claim a credit of $13,570 per eligible child they adopt.  1040CM, line 54.
• Medical expense deduction, used by taxpayers with high costs due to a disability, long-term care, or dental expenses.  Schedule A, line 2.
• A $500,000 limit on homes eligible for the mortgage interest deduction. Schedule A, line 10.
• Elimination of the casualty loss deduction for damage, destruction, or loss of property as a result of a typhoon or other disaster.  Schedule A, line 20.

Losing these credits and deductions could harm Marianas taxpayers; and the loss of government revenue, another result of the bill, could hurt the Commonwealth government. Other Members of Congress can assess the tax bill’s impact using data from the U.S. Treasury. Because the Commonwealth Division of Revenue and Taxation, not the U.S. Internal Revenue Service, collects taxes in the Marianas, I have to ask the Governor for this information.