Another tax plan, another score. The Tax Foundation estimates that Donald Trump’s tax plan could lower federal revenue by between $4.4 trillion and $5.9 trillion over 10 years using traditional scoring, or between $2.6 trillion and $3.9 trillion when accounting for macro effects on the economy. The Tax Foundation provided the ranges since the Trump campaign has been unwilling to clarify how it would tax business income.
In Olympia, Washington, a new title for a tax initiative. The Thurston County Superior Court ordered the county to change the title of a ballot initiative to create a college fund supported by a tax on income over $200,000. The original title said “Initiative measure No. 1 concerns establishment of a 1.5 percent annual income tax within the city.” The court held that the phrase “income tax” created prejudice against the measure. The new title: “Initiative measure No. 1 concerns establishing and funding a college grant program.” In other words, framing matters.
A progressive tax in Poland: Postponed. The European Commission has suspended a Polish tax on the retail sector until it concludes an in-depth investigation into the progressive tax’s structure based on inventory turnover. The EU stated: “The Commission has concerns that the progressive rates based on turnover give companies with a low turnover a selective advantage over their competitors in breach of EU state aid rules.”
The EU eyes a French gas company, too. European Union Antitrust Commissioner Margrethe Vestager is reviewing the taxes paid by France’s largest gas distributor. Luxembourg tax authorities may have made special tax rulings in favor of the 33 percent-French owned firm Engie, formerly known as GDF Suez. Vestager met yesterday with US officials including Treasury Secretary Jack Lew, who express concern that US companies are disproportionately targeted in EU tax inquiries.
Google may have a huge Indonesian tax bill. Reuters reports a bill that may top $400 million in 2015 alone, or $415 million with fines. The tax office claimed that last year, PT Google Indonesia paid less than 0.1 percent of the total income and value-added taxes owed, and will pursue five years’ worth of back taxes.
In Australia, one lawmaker puts his job on the line over a proposed tax on foreign workers. Per the government’s 2015 budget, travelers to Australia who work in the country would pay AU$0.325 cents in tax for every Australian dollar earned. That’s up from the current 19 cents after earning more than $18,000 in a year. A federal lawmaker and member of the Liberal-National Party has threatened to quit the party if the so-called “backpacker tax” advances. George Christensen, of Queensland, promised his constituents he would do so back in July. “I believe the Government is going to axe the backpacker tax and put in place arrangements that farmers can accept," Christensen said. The proposed hike has reportedly begun to “scare off” seasonal workers available for fruit picking.
Today at Urban… The Urban Institute will release its annual Kids’ Share report, measuring and tracking federal spending on children and explaining how congressional budget actions affect children. You can register for the noon event here, or see its live webcast.
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