To keep his tax returns secret, President Trump may just have to stall. Writing for The Washington Post, University of Chicago law professor Daniel Hemel explains how Trump could delay action on legal efforts to procure his tax returns until after the 2020 election. Will the Supreme Court allow that to happen?
Post-Wayfair, Pennsylvania will start collecting corporate income taxes from out-of-state companies. Beginning in 2020, the state will begin taxing companies that do not have offices, employees, or property in its jurisdiction. The expansion of the state’s corporate income tax will apply to corporations with more than $500,000 in annual sales in Pennsylvania. The state cites the US Supreme Courts’s Wayfair decision as the legal basis for its corporate income tax expansion. A handful of other states also have built new state corporate tax rules around the Wayfair decision, which specifically addressed only sales taxes.
California Governor Gavin Newsom vetoes tax deduction for college savings plan. The bill would have allowed taxpayers to deduct from state income taxes contributions to the state’s 529 savings plan. The deduction would have reduced state revenues by $13 million annually. 529 plans enjoy federal tax benefits but California is one of only seven income-tax states that does not allow tax deductions or credits for contributions to state college savings plans.
High hopes dashed? Politico reports that states are disappointed with the revenues they are collecting from legalized recreational marijuana. Sales tax revenues. are not as high as expected and TPC’s Richard Auxier explains what happened to the states: “…You’ve either promised or budgeted too much, on something you at the very least should have known was volatile.”
A German tax fraud case could have a big impact on the finance industry. Germany has accused two British former investment bankers with defrauding taxpayers in equity trades that exploited a legal loophole. Two parties were able to simultaneously claim ownership of the same shares and claim the same tax rebates. CNBC reports that German authorities are investigating nearly 500 such deals worth around €5.5 billion.and so far have recovered €2.4 billion..
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