There’s another presidential candidate with a tax (and jobs) idea. Libertarian nominee Gary Johnson says he’d eliminate the IRS if elected. He told The Hill that "If we had zero corporate tax in this country, tens of millions of jobs would get created in this country for no other reason.” If Johnson “could wave a magic wand,” he’d eliminate income tax, corporate tax, and the IRS. “We could replace all of it with one federal consumption tax.” Maybe the wand could enforce that tax?
Lessons from CBO’s macroeconomic scoring of Obama’s budget. While few are interested in the budget effects of President Obama’s long-dead final budget, CBO’s full-blown dynamic score of the fiscal plan is a learning experience for us all, says TPC’s Howard Gleckman. A few lessons: When it comes to affecting the overall economy, tax plans can be dwarfed by other initiatives (in Obama’s case, it is his immigration plan); and any projections of the budget effects of those economic changes are highly uncertain, especially after the first few years.
Ohio Senator Sherrod Brown calls for an expanded EITC. In his address to the Center for American Progress yesterday, the Democrat announced his plan to raise the $500 maximum EITC for childless adults to $1400. Brown believes that Democrats could get Congress to pass the plan the same way they secured permanent extension of EITC and the Child Tax Credit at the end of 2015.
Ohio’s bringing in fewer tax dollars than expected. Collections through May are about a half a billion dollars short of the $20.2 billion budget officials projected, with one month left before the end of the state’s fiscal year. GOP Governor John Kasich’s budget director Tim Keen says tobacco retailers and Ohio-headquartered insurance companies will submit tax payments next month that should improve the June numbers. About $271 million in reduced Medicaid spending may also help offset some revenue shortfalls.
No tax cut in Minnesota. Democratic Governor Mark Dayton allowed a $260 million tax cut bill to die Monday night. The GOP bill would have cut rates for Minnesotans including farmers, working families, veterans, and student-loan debtors. Yesterday Dayton invited the state’s legislative leaders to work with him in a special legislative session to consider his $1 billion borrowing-and-spending bill for public works and transportation. So far, GOP lawmakers have resisted.
Kansas gives Cargill $10 million in tax breaks to stay put. The agribusiness giant secured a deal with the state and some local governments worth $10 million in tax breaks over ten years. To keep the firm’s protein operations in Wichita, the city will issue revenue bonds to build a new $41.6 million facility, as well as another $6 million in bonds for equipment and machinery. The city may also pick up half the cost of Cargill’s $15 million parking garage. Cargill promises stay in town for at least 15 years.
The IRS launched a stronger e-authentication process yesterday. The IRS expects that this version will significantly increase protection against identity thieves who impersonate taxpayers through the agency’s Get Transcript online service. The IRS says the enhanced process will also serve as a foundation for future IRS self-help services.
Interested in subscribing to the Daily Deduction, the Urban-Brookings Tax Policy Center summary of the day’s tax news? Sign-up here to get the Daily Deduction delivered to your inbox every morning. If you’d like to tell us about a new research paper or have any comments about our feature, write us at dailydeduction “at” taxpolicycenter “dot” org.
Posts and Comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
- © Urban Institute, Brookings Institution, and individual authors, 2016.