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Who’s happy: Republicans cheered the announcement that Treasury and the IRS would roll out proposed regulations in the “near future” — no surprise given that senior administration officials have scoffed at the state workarounds and GOP lawmakers have called on states to instead work on cutting spending.

Democratic elected officials, like Rep. Josh Gottheimer (D-N.J.), did say they were glad the notice came out as quickly as it did, in order to give taxpayers as much guidance as possible. But tax lawyers watching the issue also fully expect it to end up mired in litigation, a process that could take years. “States that have enacted charitable contribution workarounds or are considering them are counting, in part, on precedent, according to Baker McKenzie partner Daniel Rosen, a former special trial attorney for the IRS. Other states have previously set up charities, for things such as land conservation and college tuition aid, before the federal SALT cap was enacted,” Aaron noted.

Along those same lines, some liberals are clearly a bit queasy about the idea of the state SALT maneuvers, given that most of the benefits flow to top earners. But the liberal Institute on Taxation and Economic Policy also said it would be “ unfair, arbitrary and ineffective” for the federal government to target the blue state workarounds, while continuing to leave alone more longstanding red state programs to allow tax credits for contributions to organizations providing school vouchers.

The House Appropriations Committee on Wednesday proposed giving the IRS $11.6 billion next year, a slight $186 million increase from the current level. (The full financial services appropriations bill adds up to $23.4 billion, the same as this year.) House appropriators are also seeking to give the IRS an extra $77 million specifically for implementing the GOP tax law, with another $31 million earmarked for taxpayer service support. The IRS had requested $397 million for implementing the tax law, $320 million of which it already received this year.

COME ON DOWN TO SCHEDULE B: David Kautter, the acting IRS commissioner, told a Senate panel this week that he was open to chucking the Schedule B forms currently required of tax-exempt organizations. Republicans have previously pushed legislation to largely scrap the form, on which nonprofits have to list donors who have given at least $5,000, and the IRS also talked about getting rid of it under former Commissioner John Koskinen.

Kautter told a Senate Appropriations subcommittee that he was “actively involved” in discussions with Treasury Secretary Steven Mnuchin on the issue — adding that, for most groups, “we don’t need that information to administer the tax laws in a fair and equitable way.” A collection of about five dozen conservative groups wrote to President Donald Trump and Mnuchin this month, urging them to encourage the IRS to write rules scrapping the form in the wake of the agency’s previous improper scrutiny of tea party groups. Freedom Partners, one of the groups on that letter and a member of the Koch political network, said in a new post on Wednesday that information from Schedule B forms had been used by “government officials to harass and intimidate organizations and individual donors that do not share their ideological and political beliefs.”

But Philip Hackney, a Louisiana State law professor, told Morning Tax that the IRS could find plenty of information gleaned from Schedule B forms quite useful. “There are individuals who contribute to charitable organizations and then control it in some way — direct this organization to work with its for-profit organization or do other things like that,” said Hackney, who previously worked in the IRS chief counsel’s office. “Knowing who the donors are is a critical part of enforcing the tax law." Hackney added that he thought IRS leaders open to scrapping the Schedule B had been too influenced by the fallout from Lois Lerner and the tea party controversy. “I think it’s a foolish long-term decision based on the politics of the moment that will pass and will harm oversight of the charitable sector long-term,” he said.

THINK TANK CORNER: The liberal Roosevelt Institute is out with a new paper arguing that the GOP tax law adds to the economic challenges faced by minorities in the U.S. The study’s authors, Darrick Hamilton and Michael Linden, maintain that’s because the GOP tax cut gives most of its benefits to high-income households, provides more benefits for those with existing wealth (instead of offering incentives to create new wealth) and will eventually weaken the public sector with its loss of revenue. (They also contend that the limits on the state and local deduction will force localities to rely more on fees, a more regressive means of raising revenue.)

And with all the talk about Opportunity Zones and Community Development Financial Institutions funding: The Economic Innovation Group has a new study examining how the economy is advancing in communities across the nation – and found that, much like income inequality is on the rise, certain parts of the U.S. are speeding forward while the rest of the country basically stands still. The report “finds that today’s most well-off places have enjoyed 15 years of nearly uninterrupted growth and rapidly rising living standards. The bulk of American communities, by contrast, have seen only modest advances and still bear deep scars from the Great Recession.”

YOU DON’T REALLY THINK YOU’LL WIN, DO YOU? In fact, a former left-wing guerilla is running strong in Colombia’s presidential race, with a better than decent shot of landing in a runoff after Sunday’s first vote. Gustavo Petro, who became mayor of Bogota after leaving the M-19 guerilla group, has a rather straightforward pitch on taxes, Bloomberg reports — hit the rich. He’s proposed increasing property and corporate taxes, and particularly has his eye on wealthy landowners and investors. And yet, Wall Street isn’t worried about Petro’s candidacy — though some analysts are starting to believe that might be overconfidence. (Ivan Duque, who has post-graduate degrees from both American University and Georgetown in D.C. and a more positive view of the market, is the current front-runner for Colombian president.)

AS PROMISED: Gov. Mark Dayton of Minnesota vetoed the tax bill that the GOP-controlled legislature just passed — as well as basically all the other important measures that made their way through the legislature, for that matter. “Dayton’s vetoes killed tax cuts for the two lowest income brackets and Minnesota businesses, along with a state-federal tax code alignment intended to prevent major filing headaches for Minnesotans next year," the Minneapolis Star-Tribune reports. So what’s next? Both Dayton and Paul Gazelka, the Republican majority leader of the Minnesota Senate, said there wouldn’t be any special legislative session on taxes anytime soon. But both said there could be one after November’s election — when Dayton’s successor is chosen — to at least seek to conform the Minnesota tax system with the new federal law.

THE PUSHBACK STARTS: Amazon, Starbucks and other big Seattle companies are pouring some $350,000 behind efforts to repeal the city’s new per-worker tax on big employers, The Associated Press reports. The repeal effort comes as the Silicon Valley cities where Apple and Google are located are considering similar levies. The No Tax on Jobs campaign in Seattle is working on securing a November referendum on repealing the so-called “head tax,” and it has until the middle of next month to get 17,632 signatures.