Federal district judge dismisses President Trump’s NY state tax return lawsuit. President Trump sued New York State officials in federal court to prevent them from giving his state tax returns to the House Ways & Means Committee. Trump-appointed Judge Carl Nichols ruled that his court did not have jurisdiction over New York State officials named in the suit. Ways & Means Chair Richard Neal so far has shown no interest in requesting the documents, however. And Trump could refile his suit in New York state court.
Would Warren’s wealth tax drive billionaires to put money into private equity? Bloomberg says that presidential hopeful Elizabeth Warren’s wealth tax of up to 6 percent could drive more extremely wealthy investors to seek higher returns through private equity funds. The motivator for billionaires: Warren’s wealth tax, part of her plan to fund Medicare for All, could eat up all returns of less than 6 percent. Of course, even without a wealth tax, the mega-rich always look to maximize their returns.
Speaking of billionaires: “Go west, young man.” Or rather, south. The Wall Street Journal looks at (paywall) three billionaires who relocated from Connecticut, New Jersey, and New York to the warmer (and -income tax-free) climes of Florida. It suggests the moves could hit state budgets. In Connecticut, the top 100 tax filers accounted for 12 percent—$1.13 billion—of the state’s income tax revenues in fiscal year 2018. However, research suggests that, on net, states are better off taxing the super-rich. While some will decamp to avoid, say, state estate taxes, those who stay will pay the higher taxes.
Chicago Mayor Lori Lightfoot asks state lawmakers for a new transfer tax on Chicago property sales. She’s trying to close the city’s $838 million budget deficit. Chicago currently imposes a 0.75 percent tax on real estate transfers. She has proposed rate increases that would range from 0.55 percent on sales under $500,000 to 2.55 percent on sales exceeding $3 million. Democratic lawmakers in Springfield prefer even higher rates.
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