Would these New York millionaires back Trump’s tax plan? More than 40 millionaires in the state of New York wrote a letter to Governor Andrew Cuomo and state lawmakers asking them to raise state income tax rates for the highest-income 1 percent of New Yorkers. Their aim: To offset Donald Trump’s federal tax cuts on those households. Right now, an unmarried millionaire earning more than $1,062,000 pays the state’s top rate of 8.82 percent. Under the millionaires’ proposal, that rate would climb to 9.35 percent, 9.65 percent and 9.99 percent for those making $2 million to $10 million, $10 million to $100 million and more than $100 million, respectively.
Meanwhile, Sanders’ tax plan gets the nod from a plurality. A new WalletHub/Survey Monkey poll finds that 23 percent of respondents like the Vermont Democrat’s plan the best among all presidential candidates’ tax plans. Thirteen percent prefer Democrat Hillary Clinton’s plan, while 12 percent prefer Donald Trump’s proposal. But 34 percent of respondents have “no idea” which plan they prefer. The findings don’t surprise TaxVox’s Tax Hound, who suggests a visit here to help close the information gap.
House Republicans would just repeal the tax code. Politico reports that 125 GOP lawmakers have cosponsored a bill introduced by Rep. Bob Goodlatte to abolish the tax code starting in 2020. Backers say this would encourage Congress to enact tax reform. Or not. House Ways & Means chair Kevin Brady is among the supporters.
Next week: Find out what federal tax reform would mean for the states. Presidential candidates have a variety of ideas for federal reform that could have varying impacts on states’ economies, tax burdens, and revenues. Governing’s Liz Famer will moderate a panel featuring Jeff Friedman of Sutherland Asbill & Brennan LLP, Scott Pattison of the National Governors Association, and Frank Sammartino of TPC. Register here.
Did a candidate’s charitable organization engage in political activity? Tax law prohibits such activity, but Citizens for Responsibility and Ethics in Washington says the Donald J. Trump Foundation improperly donated $25,000 to a political group tied to Florida Attorney General Pam Bondi in September 2013. CREW says Bondi was considering whether Florida should file a lawsuit against Trump and the former Trump University. Her office ultimately didn’t bring a case, and CREW wants the IRS to investigate. CREW’s board chair runs two Super PACs that back Democratic candidate Hillary Clinton.
Speaking of IRS investigations… The agency has been busy, continuing its battle against tax fraud and identity theft. In fiscal year 2015, the IRS initiated 776 identity theft-related investigations. IRS Criminal Investigation enforcement efforts secured 774 convictions against those thieves. The average sentence was 38 months in FY 2015, with the longest over 27 years.
And speaking of consequences… GOP Congressman Rob Wittman of Virginia just introduced a bill that would suspend Congressional salaries if Congress doesn’t pass a budget by April 15. Speaker Paul Ryan supported such a measure back in 2013, but told The Hill last week, “I support passing a budget. I’ll just leave it at that.”
Starting tomorrow, Congress will be in recess until April 4. The Daily Deduction will publish Mondays until Congress reconvenes.
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- © Urban Institute, Brookings Institution, and individual authors, 2016.