Will the country’s credit rating change with Trump tax cuts? The President-elect’s tax cut and other policy plans don’t pose a short-term risk thanks to the strong US dollar, according to the Fitch agency. But its head of EMEA sovereign ratings, Ed Parker, says “We do see increasing medium-term pressures (on the triple-A rating)… Even before elections the U.S had the highest level of government debt of any triple-A country. If we add on top of that Trump's plans to cut taxes by $6.2 trillion over the next 10 years that could add around 33 percent to U.S. government debt.”
What are the next steps in offshore multinational corporate tax? You can find out at the Levin Center at Wayne Law’s free, half-day conference on Tuesday, January 31. The morning event takes place at the Pew Charitable Trusts in Washington DC, and will be co-chaired by retired Senators Carl Levin and Tom Coburn, MD. Attendees will hear diverse views on how Congress and the new presidential administration can tackle issues related to multinational corporate offshore profits, such as the increasing use of offshore tax havens. Register here by January 26.
Kansas Governor Sam Brownback faces an uphill budget battle. The state’s lawmakers did not embrace the Republican’s plan to increase alcohol and tobacco taxes and tap the state’s highway fund to close a $900 million budget gap over 18 months. To get cash now, Brownback also proposes a liquidation of a long-term investment fund and sale of the state’s future proceeds from a tobacco settlement. But he’d like to keep an income tax exemption for certain businesses. Republican leaders in the legislature complain that “The governor continues to use one-time money, adds new taxes on the middle class, and neglects to fix the LLC loophole. The math simply just doesn’t add up.”
China sees slower growth in its tax revenue. The nation’s tax revenue climbed 4.8 percent between 2015 and 2016, down from 6.6 percent the previous year. The reason: A new value-added tax in 2016. China made the switch from a flat business tax in order to reduce companies’ taxes by 500 billion yuan.
House Ways & Means Dems have new subcommittee assignments. Rep. Richard Neal (MA) becomes the full panel’s top Democrat. Other ranking minority member assignments: Rep. Sander Levin (MI) for Health, Rep. Lloyd Doggett (TX) for Tax Policy, Rep. Bill Pascrell Jr. (NJ) for Trade, Rep. John Larson (CT) for Social Security, and Rep. Danny Davis (IL) for Human Resources.
The Daily Deduction returns Tuesday, January 17, in observance of Martin Luther King, Jr.’s birthday on Monday, January 16.
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