Do Trump’s child care tax cuts add up? The Wall Street Journal considers how (paywall) the proposals would affect two sample middle-income families with children. “A more complete calculation shows that the Republican presidential nominee overstates the benefits of his plan in one case and understates them in another.” The benefits look bigger if you ignore the existing $1,000-per-child tax credit and the child and dependent-care tax credit, which provides up to $1,200 to families in this income group. Meanwhile, TPC’s Elaine Maag explains that “For those who need it the most, such as low-income married couples with a single earner, there is much less to Trump’s plan [for child care tax breaks] than meets the eye.”
As for taxing partnerships and pass-throughs? Brian Faler at Politico reports on Trump’s new details. The latest: All businesses could pay the 15 percent business rate. Pass-throughs could also choose to pay at the individual rate. If owners choose the 15 percent rate, their businesses would also be taxed at the firm level. However, small business (which Trump does not define) would be exempt from the second level of tax. In addition, the campaign told Politico that Trump would also devise rules to prevent "wealthy" people from gaming the system. As of yesterday afternoon, no description was available on Trump's website.
No time like the present… IRS Commissioner John Koskinen told a House Judiciary Committee hearing that impeaching him would be “improper” given the lack of evidence to support GOP charges. House Freedom Caucus Chairman Jim Jordan of Ohio said that impeaching Koskinen is “the least Congress could do.” Democrats, meanwhile, used the session to pose questions about Trump’s tax returns.
A Cook County soda tax? The County Board president is considering a tax of between 0.5 cents and 1.0 cent to help fill a $174 million budget hole. The Chicago-area county considered the tax last year but dropped the idea.
In Michigan: “Tax Capture” bills catch the Governor’s eye. GOP Governor Rick Snyder says he’s “concerned” about two state Senate bills that would allow communities to capture revenues from sales, use, and income taxes to subsidize large development projects. However, he won’t say if he will oppose the measures. The revenues could reduce a developer’s private investment in a project.
Energy provider Exelon may have to pay Treasury $1.45 billion in back taxes. The company just lost its case in US Tax Court. Exelon’s predecessor company had aggressively shielded itself from taxes after selling its coal-fired power plants in Illinois for $4.8 billion. Exelon then invested much of the proceeds in long-term leases for other plants around the country. The IRS argued that the leases were used to avoid paying capital gains. Exelon must now pay or appeal the decision.
Down Under: A big tax bill for BHP Billiton. The Australian government has ordered the company to pay AU$767 million in back taxes and penalties after it channeled profits through Singapore. The mining company may appeal in court.
In Sweden: Repair your bike, get a tax break. The country’s ruling Social Democrat and Green party coalition wants to slash the VAT rate on repairs to bicycles, clothes and shoes from 25 percent to 12 percent. The tax breaks are designed to reduce waste and build a labor market for repair workers.
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