The FairTax is back. TPC’s John Buhl writes that the latest iteration of the FairTax—which would replace federal taxes on individual and corporate income, capital gains, payroll, and estates with a national sales tax—suffers from the same problems as its predecessors. “It is regressive, more complex than its sponsors claim, and likely would reduce federal revenues.” While supporters say it would abolish the IRS, the levy still would require significant tax administration and compliance that would be outsourced to the states.
A long list of new Ways & Means Republicans: The Republican steering committee picked Mike Carey of Ohio, Randy Feenstra of Iowa, Michelle Fischbach of Minnesota, Brian Fitzpatrick of Pennsylvania, Nicole Malliotakis and Claudia Tenney of New York, Blake Moore of Utah, Michelle Steel of California, Greg Steube of Florida, and Beth Van Duyne of Texas.
West Virginia Gov. Justice has big tax cut plans. The state expects a $1.8 billion surplus this fiscal year, and the GOP governor has a plan: He wants to cut taxes by $800 million over three years with a 50 percent reduction in the personal income tax. Last year, the GOP governor and the GOP legislature never could agree on a significant tax cut.
Mississippi Gov. Reeves wants to eliminate income tax. The Republican believes there is a “path” to do it. Last year, he signed Mississippi’s largest income tax cut and says if he is reelected, he’ll try to completely eliminate the levy.
Georgia Gov. Kemp continues to push for $2 billion in tax relief. He wants to use the state’s budget surplus for $1 billion in income tax rebates for “inflation relief” and $1 billion in property tax relief worth about $500 per homeowner.
New Jersey Gov. Murphy says tax cuts are on the way, too. The state passed a $2 billion property tax rebate last year. The Democrat told Bloomberg that other “significant tax cuts” are on the way.
The Daily Deduction will next publish on Tuesday, Jan. 17, in observance of Martin Luther King, Jr., Day on Monday, Jan. 16.
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