Child poverty fell by 46 percent in 2021, thanks largely to the expanded CTC. Census Bureau data show that 5.2 percent of children were in poverty in 2021, far fewer than the 9.2 percent in 2020. Census credits much of the decline to the American Rescue Plan’s expanded child tax credit. The agency estimates the expanded CTC lifted 5.3 million out of poverty in 2021, including 2.9 million children—one million of whom were under age six.
Virginia tax rebates are on the way. The state will begin issuing one-time tax rebates of up to $250 to tax filers on Sept. 19, continuing through November 1. The rebate comes thanks to a bipartisan plan passed by the General Assembly.
California Gov. Newsom urges “no” on a new tax on the wealthy. November ballot initiative Proposition 30 would raise taxes on those earning over $2 million. It would generate $5 billion in new tax revenue annually to fund electric vehicle charging stations and subsidize EV purchases. But Gov. Gavin Newsom calls the ballot measure “one company’s cynical scheme” that would not help the environment. Ride-share service Lyft funded the initiative campaign after California regulators ordered it and other ride-sharing companies to require nearly all their drivers have electric vehicles by 2030.
Louisiana lawmakers consider repealing the income tax. The House Ways and Means Committee will study the state’s tax structure, including the elimination of individual and corporate income taxes. Currently, Louisiana’s tax brackets range from 1.85 percent to 4.25 percent. A Republican Committee member would replace the income tax with locally administered property taxes to compete with income-tax-free neighbors Texas and Florida.
No delay of Trump Organization tax fraud trial in New York. State judge Juan Merchan rejected the company’s effort to delay its trial over alleged tax fraud, currently scheduled to begin Oct. 24. A Trump Organization lawyer argued that the guilty plea of its longtime chief financial officer Allen Weisselberg changed how the defense will present its case. Prosecutors charged the business with scheming to defraud, tax fraud, and falsifying business records for awarding "off-the-books" perks to senior executives. “We are not delaying this trial,” ruled Judge Merchan. “We’re going forward.”
Will global tax reform overcome another dealbreaker? Many businesses want the withholding taxes they pay to countries to be counted when calculating the amount of profit allocated to a jurisdiction. The firms say they’ll be subject to double taxation if it is not. Many countries want withholding taxes excluded from the calculation. Bloomberg Tax reports (paywall) that if withholding taxes remain part of the calculation, some countries may reject the deal.
Study: UK government’s energy package would carry a “colossal” price tag. The Resolution Foundation, a United Kingdom think tank, finds that the richest tenth of UK households would receive an average of £4,700 (about $5,400) under the plan proposed by Prime Minister Liz Truss that includes an “energy price guarantee” and cuts to national health insurance. A typical household in the poorest tenth of UK households would receive less than half as much on average.
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