Today at Ways & Means… The House panel holds a hearing this morning to consider “The 2017 Tax Law and Who It Left Behind.” In advance of the hearing, the Joint Committee on Taxation published updated 2019 distributional tables for the Tax Cuts and Jobs Act compared to prior law.
Speaking of the tax law’s impact, TPC has a new tool that models alternative TCJA scenarios. TPC’s Howard Gleckman explains that TPC ran its microsimulation model on thousands of combinations of some core individual code provisions of the TCJA. By looking at what the law did and comparing it to what Congress could have done, the new tool compares changes in federal revenue and in the after-tax income of households. For instance the TCJA’s expansion of the refundable portion of the child credit was a major tax cut for low-income families. But what would have happened if the law made more of the credit refundable? The tool lets you look at TPC’s results or make some of those adjustments yourself.
There was motor voter. How about filer voter? TPC’s Vanessa Williamson has looked what would happen if people could get voter registration information when they file their taxes, much like they do when they renew their driver’s licenses. Her research suggests that providing these materials to tax filers can substantially increase registration rates, especially for those less likely to vote. She’ll release the results at an event next Tuesday at Brookings. You can register here.
Is New York City about to introduce congestion pricing? State leaders back the idea of using electronic tolls for drivers entering the busiest stretches of Manhattan to help pay to repair the city’s subway system. Without the new revenue, subway and bus fares may have to climb by 30 percent, according to the State Senate. Congestion pricing could raise about $1 billion annually to secure $15 billion in Metropolitan Transit Authority capital project bonds through 2024.
Bay Area poll: “No taxation without explanation.” A San Jose Mercury News poll finds only 30 percent of Bay Area voters support a new per-employee tax on local business to fund general services. Why do 70 percent of voters oppose the idea? Pollster Dave Metz says they first want to know more about how government would spend the money.
Which states are riding highest on marijuana tax revenue? A Forbes infographic tells the story. Of seven jurisdictions that tax and regulate recreational marijuana, Washington State collected the most tax revenue last year with $319 million. California was second with $300 million followed by Colorado with $266 million. Among programs supported by the revenues: school construction, drug abuse programs, and medical research..
Speaking of Washington State: House Democrats have a pot-free plan to raise $780 million. The centerpiece of their tax package is a 9.9 percent tax on “extraordinary profits” on the sale of stocks and bonds. The state would impose the levy on profits exceeding $100,000, or $200,000 for married couples. The state expects it would generate $780 million for 2019-2021 and $1.9 billion in 2021-2023 to fund education and mental health services.
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