On the Hill and at a restaurant. Senate Democrats picked Chuck Schumer of New York as their leader. House Republicans are in talks with President-elect Trump to figure out how to overhaul the US tax system. And Trump’s adviser Stephen Moore suggested that tax reform come in two separate bills—one for business and another for individuals.. Meanwhile, the President-elect assured diners at New York City’s 21 Club steakhouse that their taxes will be coming down.
Orrin Hatch may soon finish his corporate reform plan, and decide whether to run for reelection. Hatch has been working on a plan aimed at ending double-taxation of corporate dividends for months, but aides say it is nearly complete. With all the talk about Trump and House Republicans working on a tax bill, Hatch may be anxious to lay down his own marker. Meanwhile, the 82-year old, who has said he would retire in 2018, now says he may run for reelection.
For more details and context, visit TPC. We have updated estimates—including macro-dynamic estimates—of the impact of Trump's revised tax plan on federal revenues and the debt for 2016-26 and 2027-36.
Colorado will test taxing drivers by the mile. Starting next month, the state’s transportation department will start the Road Usage Charge Pilot Program. It will recruit 100 volunteers to track their diving distances that would theoretically be subject to a 1.2 cents per mile tax. The department will not actually collect the tax, but wants to see how such a system would work. Colorado has not increased its 22-cent-per-mile gasoline tax in over 20 years. Oregon began to test a per-mile gas tax last year.
Tennessee posts a budget surplus in its first quarter. It collected $184 million in excess of projected revenue in the first three months of its fiscal year. The revenue comes from $93 million in corporate franchise and excise taxes and $86 million in sales tax collections.
Connecticut Governor Dannel Malloy remains open to a tax increase. The state’s budget is still in the red, and Malloy largely blames underfunded state pension obligations. He doesn’t expect to raise a lot of extra revenue through a tax hike but deep spending cuts are likely.
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