Are tax credits the best way to subsidize long-term care costs? Democratic presidential candidates Joe Biden and Amy Klobuchar have proposed tax credits to help support people who are receiving long-term supports and services and their families. But TPC’s Howard Gleckman argues that tax credits may not be the most effective way for government to provide this support. “They can be difficult to administer and, as designed, likely these would benefit relatively few of those who most need assistance.”
Presidential candidate Mike Bloomberg would raise taxes on corporations and the wealthy. The billionaire released a plan to raise the corporate tax rate from 21 percent to 28 percent, restore the top 39.6 percent individual income tax rate, and impose a 5 percent surtax on incomes above $5 million a year. He’d also scrap the Tax Cuts and Jobs Act’s 20 percent tax deduction for pass-through businesses. His campaign estimates that his plan would raise $5 trillion over ten years and help finance Bloomberg’s spending initiatives.
IRS launches “Identity Theft Central.” The Internal Revenue Service today launched Identity Theft Central, designed to improve online access to information on identity theft and data security protection for taxpayers, tax professionals, and businesses. The tool is available 24/7 at irs.gov/identitytheft and can be used to help report identity theft and for taxpayers to learn how to protect themselves against phishing, online scams, and other forms of theft.
Germany and Austria disagree over taxing financial trades. They are two of ten European Union member states that are working on a financial transaction tax plan. Germany proposes a 0.2 percent tax on share purchases. It would use the revenue to fund pensions for lower-income individuals. Austria rejects the German version, saying it would disproportionately affect small investors and spare highly speculative financial instruments and derivatives. Talks continue, with difficulty. In the US, Democratic presidential hopefuls Bernie Sanders and Elizabeth Warren have proposed their own financial transactions taxes.
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- © Urban Institute, Brookings Institution, and individual authors, 2020.