Big Pharma: Don’t raise taxes on makers of COVID-19 vaccines. Pharmaceutical companies are telling Congress that the global minimum corporate tax could raise their taxes by hundreds of millions of dollars every year. They say the financial hit is unfair, given how fast they developed and produced vaccines against COVID-19. Will the message resonate? A healthcare policy consultant told The Wall Street Journal (paywall), “There certainly is a halo from COVID. I think that halo will wear off.”
Advocates mount ad campaign backing tax increases on the wealthy. The group Tax March launched a $2 million campaign urging Congress to raise taxes on wealthy households and corporations. The promotion includes a billboard in New York City’s Times Square and national TV and digital ads. Says one ad, “If you can afford to launch yourself into space, you can pay your fair share in taxes”
DC Mayor urges the city council to reconsider a tax increase. Mayor Muriel Bowser did not comment before the council voted 8-5 last week to raise taxes on residents earning more than $250,000 annually. Bowser’s office subsequently released a statement saying that “the government should live within its means and not burden residents or employers… We hope that the council will reconsider raising taxes before their final vote.” DC expects to get $2.3 billion in federal pandemic relief over the next several years.
What tax policies can DC use to address income inequality? TPC’s Elaine Maag and Kim Rueben testified before the DC Council to suggest solutions. Elaine discussed the potential benefit of a universal basic income. Kim testified on taxes the city can use to both raise revenue and reduce inequality.
What would vaccine lottery winners pay in taxes? CNBC offers a rundown for lucky winners of government incentives to get vaccinated. Prizes range from $2 million to trucks or lifetime fishing or hunting licenses. And, yes, the prizes are taxable. Generally, 24 percent of cash winnings are withheld for federal income tax, and winners must pay taxes on the value of goods received for non-cash prizes.
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, 2021.