It’s May. Do you know what your business taxes are? If you’re an entrepreneur, probably not. CNBC reports continued confusion about how the Tax Cuts and Jobs Act will affect business owners. Will they qualify for the TCJA’s 20 percent deduction of income from pass-through entities? Until the IRS writes regulations, accountants urge owners to plan conservatively. Otherwise, they risk underpaying their taxes and owing interest and even penalties.
Communication Workers of America still wants to know companies’ TCJA windfall plans. The CWA has filed complaints with the National Labor Relations Board against AT&T and Nexstar Media Group that refused to tell the union how they will use corporate tax savings from the TCJA. The union wanted to use the information to bargain with management but Nexstar and AT&T would not say.
The alcohol industry wants permanent tax relief. The TCJA reduced the excise tax on distillers, brewers, and vintners, but only for two years. It cut the tax on beer from $18 to $16 per barrel on the first 6 million barrels brewed or imported annually, and the tax on small domestic brewers from $7 to $3.50 per barrel for the first 60,000 barrels. The law replaced a flat rate of $13.50 per proof gallon of liquor with a tiered system. And it expanded a tax credit for wine that was previously only available to small producers. Industry representatives are optimistic about permanent tax relief—though it is unclear how Congress would deliver it.
Should states start counting their sports-betting tax revenue? Not so fast, despite this week’s Supreme Court decision that allows states to green-light sports books, and collect tax on the handle. TPC’s Howard Gleckman gives states six key issues to consider before banking on any new money. Spoiler: “There is little doubt that sports wagering will become a new source of tax revenue for many states. But will it become the big cash cow that many predict? I wouldn’t bet on it.”
House Ways & Means Committee has a new member. Rep. Brad Wenstrup (R-Ohio) will fill an open seat on the House Ways and Means Committee. Wenstrup replaces Rep. Pat Meehan of Pennsylvania, who resigned last month in the wake of allegations of sexual misconduct. Wenstrup has a medical degree and serves in the Army Reserves.
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