China cools hopes for a big trade deal. While President Trump touted a major agreement on Friday, China’s state media does not mention the “deal” at all, and just refers to “progress.” Meanwhile, the ongoing trade war is hurting both countries. In September, Chinese exports to the US fell by 21.9 percent to $36.5 billion while US exports to China fell by15.7 percent.
Senator Bernie Sanders would raise the corporate income tax rate to 35 percent and ban stock buybacks. The presidential candidate introduced a plan to restore the 35 percent corporate tax rate that the Tax Cuts and Jobs Act had cut to 21 percent. Sanders also would eliminate corporate tax preferences, ban stock buybacks, and eliminate off-shore tax havens.
On the Hill this week. The House Committee on the Budget holds a hearing tomorrow on “Strengthening Our Fiscal Toolkit: Policy Options to Improve Economic Resiliency.” On Thursday the House Ways & Means Committee will hold a hearing entitled “Investing in the US health system by lowering drug prices, reducing out of pocket costs, and improving Medicare benefits.”
Most states shouldn’t count on a repeat of the 2019 fiscal year’s strong revenue. TPC’s Lucy Dadayan explains that while total state tax revenue grew by 5.8 percent in fiscal year 2019, growth was slower than in 2018. State revenue forecasters are predicting weaker growth in income tax revenues in fiscal year 2020.
GAO urges the IRS to strengthen efforts to stop abusive schemes involving tax-exempt entities. IRS audits of such activities are trending downward amid declining IRS resources, the report finds.. The Government Accountability Office makes several recommendations to improve IRS internal controls, including linking data across operating divisions, testing the ability of a database to facilitate analysis of audit data, and using existing analytic tools to further mine information on tax forms.
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