Tomorrow: House Ways & Means to mark up healthcare-related tax bills. TaxNotes reports that the panel will consider several bills that relate to expansion of health savings accounts. Whether the markup will include provisions that would delay some Affordable Care Act taxes remains unclear.
Also in the House: A bill to curtail President Trump’s tariffs. Rep. Mike Gallagher, (R-WI) introduced a bill yesterday that would limit the president’s authority to impose certain tariffs. The bill would require a president to secure Congressional approval before levying a tariff in the interest of national security. Lawmakers would then have 60 days to review the president’s plan. A companion bill in the Senate introduced by Sens. Bob Corker and Pat Toomey has bipartisan support but has received strong pushback from the White House.
What’s next after Wayfair? TPC’s Gene Steuerle considers the need for nations and states to cooperate in their tax collection efforts. States will need to work together in the wake of last month’s Supreme Court Wayfair decision, which allows states to require companies to collect sales tax even if they are located outside the state. And countries need to cooperate to sort out taxes for multinational firms that operate in multiple jurisdictions. “….it is difficult, if not impossible for jurisdictions to resolve these issues on their own. But they create important opportunities for these authorities to work together to develop solutions that are fair to taxpayers while assuring that government collects tax that is legitimately owed.”
As for Texas, the Wayfair decision means new money, if not a lot of it. The state’s House Appropriations Committee Chairman says “This isn't a huge windfall anymore… Even if it's a couple hundred million… that’s still a lot of money. It’s definitely worth doing what we need to do to get it.” Texas needs funds to cover the cost of Hurricane Harvey recovery and school security, for example.
Seattle’s soda tax raised more revenue than expected. The tax on sweetened beverages has already raised $4.45 million in the first three months. The city’s budget office had expected the tax to raise $14.8 million in its first year. It’s too early for the city to determine whether the tax has reduced consumption of sweetened beverages.
China’s wealthy taxpayers brace for the country’s new tax law. The government is considering significant changes to its individual income tax code. In a nutshell, the changes would reduce the tax burden on middle- and low-income taxpayers. Higher-income earners would face a maximum marginal tax rate of 45 percent. The new tax law would go into effect in January 2019.
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