The latest on highway funding… Just before leaving town for its August recess, the House approved a three-month extension of highway funding until October 29. That is likely to push the Senate to follow suit. The Senate is likely to act tomorrow. Lawmakers say they’ll use the extra time to work with the White House on a long-term funding solution. Funding expires on July 31.
Also on the Hill. The Senate Judiciary Oversight Subcommittee holds a hearing today on the progress of agency reforms and congressional options in the wake of the IRS targeting scandal.
Is it better if investors hold on to assets longer? Democratic presidential candidate Hillary Clinton thinks it is, and she’s designed capital gains tax rates to encourage it. But TPC’s Len Burman explains how she’s misdiagnosed the problem as “activist investors” and concludes her plan isn’t likely to change corporate behavior very much.
In Maryland: Tax amnesty for a revenue boost. This fall, delinquent taxpayers have the chance to square up their tax debts and pay only half—6.5 percent—the annual interest due as penalty. Maryland will waive other penalties except in cases of fraud. Delinquent taxpayers owe the state about $800 million. The amnesty program could add at least $18 million to the state's general fund revenues for the 2016 fiscal year, and local revenues could grow by at least $4.5 million. Amnesty runs from September 1 through October 30.
But in Portland, Oregon: Failure to pay a new arts tax will bring the hammer down. Voters approved a $35 income tax in 2012 to pay for state arts teachers and programs. But a city audit finds that nearly 200,000 Portlanders either haven't paid their first bill or filed paperwork claiming they are exempt from the levy. The city has increased its collection efforts, but plans to refer delinquent taxpayers to a collection agency next year.
And in Ohio, Amazon invests in exchange for a tax credit. The online retailer promises to build distribution centers to the tune of $200 million and hire 2,000 people. Ohio has approved tax credits valued at about $17.5 million. Amazon’s new jobs are worth about $60 million.
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, 2020.