Treasury proposes SALT guidance. Treasury issued proposed regulations that would bar states from implementing a workaround to the Tax Cuts and Jobs Act’s limitation on the State and Local Tax (SALT) tax deduction. A number of blue states, including New York and New Jersey, passed laws that allow taxpayers to make fully tax-deductible charitable gifts to state and local government in lieu of only partially deductible tax payments. The guidance still allows, but limits, state tax credit programs for gifts to private schools.
More holds on Treasury nominees. Senator Ron Wyden, the top Democrat on the Senate Finance Committee, has placed a hold on all Treasury nominees because the department has not responded to Democrats' questions regarding “criminal tax evasion, corruption, and foreign influence in our elections.”
TPC updates its model baseline.TPC’s updated baseline reflects the changes included in the Tax Cuts and Jobs Act as well as the latest economic assumptions. TPC’s Howard Gleckman summarizes the highlights here.
What does Michael Cohen know about the Trump Foundation? State prosecutors in New York subpoenaed Michael Cohen Wednesday in relation to their tax investigation of the Trump Foundation. He called them back personally upon receiving the subpoena.
New tariffs, more talks… Reuters reports that the US and China each imposed 25 percent tariffs on an additional $16 billion worth of each other’s goods. The two countries have now set tariffs on $100 billion in products since July. Trade talks between Chinese Commerce Vice Minister Wang Shouwen and David Malpass,US Treasury under secretary for international affairs, continue in Washington.
And more retaliation? Japan’s trade minister says the country might respond if President Trump follows through on his threat to impose tariffs on auto imports. Japan has not ruled out tariffs on imported US goods.
What’s more popular than the TCJA? Obamacare. According to the latest poll by Fox News, the Affordable Care Act enacted under President Obama is more popular than the Tax Cuts and Jobs Act. The survey of 1,009 registered voters found 51 percent approved of the ACA, while only 40 percent backed the GOP tax law.
Disney wants to make nice with Anaheim. Walt Disney Co. has asked the city to end all company-related tax incentive deals. Disney is Anaheim’s largest employer and has received an estimated (and Disney-disputed) $1 billion in tax subsidies, incentives, rebates, and protections. Why is Disney willing to turn back the subsidies? The Los Angeles Timesreports that if they end, Disney would be exempt from a November 6 ballot measure that otherwise would require it to pay its workers a living wage.
Atlanta schools borrow $60 million because of a tax delay. The Atlanta-Journal Constitutionreports that the Atlanta Public Schools district must borrow to cover expenses while it waits for Fulton County to send out property tax bills and collect the revenue. This is the third year in a row that the school district has had to take out a “tax anticipation note,” at a combined interest cost of $1 million. A high number of pending property tax appeals required Fulton County to obtain a court order before sending out tax bills this year.
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