Poland is not yet on board with a global minimum corporate tax. Treasury Secretary Janet Yellen told reporters yesterday that there has been no breakthrough in talks with Poland, the lone holdout in the European Union’s plan to implement a 15 percent global corporate minimum tax. However, she said “good, frank discussions” are ongoing. Poland’s new finance minister Magdalena Rzeczkowska wants a “legally binding” agreement tying the global minimum tax to the ability of individual countries to tax large, highly profitable multinationals.
Maybe Thursday for Ukraine aid. The $40 billion funding bill has been stalled in the Senate for a week, but leaders of both parties seem confident it will pass in a few days. The Pentagon says it has enough money to last to Thursday at its current spend rate. Lawmakers still are working on a way to get a vote on a COVID-19 funding bill for vaccines, therapeutics, and tests that also is stuck in the Senate.
Are states growing too dependent on fossil fuel tax revenue? ABC News reports on a Resources for the Future study that shows federal, state, and local governments receive an estimated $138 billion a year in tax revenue from the fossil fuel industry. While there is wide variation among states, states like Alaska and New Mexico are enjoying big windfalls thanks to soaring oil prices. That revenue funds essential public services from schools to highways to prisons. If they shift away from fossil fuels, states could face a choice: Raise taxes on residents or reduce services.
Minnesota lawmakers agree on a budget framework. Leaders in the House and Senate agreed to spend $4 billion on education, public safety, and health care, and cut taxes by another $4 billion. Minnesota currently has a $9.25 billion budget surplus. Lawmakers still are working out the details and have until May 23 to complete the budget.
Tune in Thursday for TPC’s Prescription with Michele Evermore. The deputy director for policy in the Department of Labor’s Office of Unemployment Insurance Modernization will talk with TPC’s Howard Gleckman about the challenges states faced in managing an unprecedented level of unemployment claims during the peak of the pandemic, and efforts to streamline and improve these systems for the future. Register and tune in Thursday at noon here for the virtual event.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at firstname.lastname@example.org.
Posts and comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
- © Urban Institute, Brookings Institution, and individual authors, 2022.