Another tax probe prompts another raid of Google’s offices, this time in Spain. Last month it was in France, and this time Spanish tax authorities searched Google’s office in Madrid. At issue: VAT payments and non-residence tax. Spain suspects that Google failed to report some business activity in Spanish territory. Google insists it complies with tax law in Spain and in every other country where it operates.
Most states will start their fiscal years with completed budgets. TPC’s Norton Francis takes a tour of state houses and finds that most legislatures, but not all, have wrapped up their fiscal plans for the new budget year, which most start today. Norton takes a look at the good, the bad, and the ugly.
And then there is Illinois. Democrats and Republicans are piecing together a temporary three-part deal that would keep the government funded for the next six months and allow schools to open in the fall. Part 1 would add $250 million for school districts with low-income students, $100 million of which would go to Chicago Public Schools (CPS). Part 2 would let Chicago raise property taxes to help pay for CPS pensions. Part 3 would stipulate that the state wouldn’t have to cover $200 million in CPS pensions until next year. Lawmakers plan to vote on the deal today, though the Democratic-controlled legislature and Republican Governor Bruce Rauner continue their years-long stalemate over a permanent tax-and-spending plan.
Exxon wants a carbon tax, and wants other energy companies to want one, too.The Wall Street Journal reports (paywall) that the oil company’s is getting more aggressive in its support of a carbon tax. This could be an effort to improve its image in the wake of at least two state investigations into whether it covered up what it knows about the impact of global warming. Or it may just believe that a single national tax makes more sense than a Babel of state taxes and regulations. TPC’s Howard Gleckman’s take is here.
On the Hill next Wednesday. Politico reports that Treasury’s Mark Mazur and Bob Stack respond to congressional objections to its proposed debt-treatment regulations.
Save this date to learn about a corporate tax for the 21st century. On Thursday, July 14, from 9am to 2:45pm, join an international group of economists and lawyers for a day-long discussion on corporate tax reform. The TPC event will be held in collaboration with the Oxford University Centre for Business Taxation and the Robert D. Burch Center for Tax Policy and Public Finance at the University of California, Berkeley. You can register and learn more here.
The Daily Deduction will resume its regular schedule on Tuesday, July 5. Happy Fourth of July!
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