JCT says high income households would benefit most from repealing the SALT deduction cap. The Joint Committee on Taxation estimates that in 2019, more than 40 percent of the benefit of repealing the Tax Cuts and Jobs Act’s cap on the state and local tax (SALT) deduction would go to households making $1 million or more annually. Those making less than $100,000 would get about 0.5 percent of the benefit. The JCT estimate roughly tracks a TPC analysis. It found that in 2018, the top 1 percent, who made about $775,000, would have received roughly 56 percent of the benefit of repeal.
Sanders proposes a financial transaction tax to fund his college debt plan. Sen. Bernie Sanders would use a tax on financial transactions to fund his plan for the government to pick up all $1.6 trillion in outstanding student debt owed by 45 million Americans. His campaign says the tax would generate more than $2 trillion over 10 years.
O’Rourke would tax families with no military members to pay for vet’s health care. Another Democratic presidential hopeful, Beto O’Rourke, wants a veterans’ health care trust fund paid for by a war tax on households with no military members or veterans. The levy would range from $25 for taxpayers with adjusted gross incomes under $30,000 to $1,000 for taxpayers with AGI exceeding $200,000 a year.
Tax treaties run aground, again. The Senate Foreign Relations Committee hoped to approve four tax treaties today but Politico reports the effort has run into continued opposition from GOP Senator Rand Paul and committee Democrats. Paul has blocked Senate consideration of the pacts for eight years.
Billionaires ask for a wealth tax. A group of 18 billionaires including financier George Soros, Facebook cofounder Chris Hughes, and heir and filmmaker Abigail Disney have endorsed the idea, saying a wealth tax “strengthens American freedom and democracy” and “is patriotic.” They cite Sen. Elizabeth Warren’s proposed two percent tax on assets exceeding $50 million and 3 percent tax on wealth exceeding $1 billion.
Treasury Inspector General will investigate delay of new Tubman $20 bill. Acting Inspector General Rich Delmar told Senate Minority Leader Chuck Schumer that TIGTA will review the Trump administration’s decision to delay the new note featuring Harriet Tubman. If we discover indications of employee misconduct or other matters that warrant a referral to our Office of Investigations, we will do so expeditiously.”
How to qualify for a tax abatement: Call a chef a construction worker. The Washington Post reports on the interesting choice that a Washington, DC hotel made when documenting the number of city residents it hired to qualify for a $46 million tax abatement. A District review finds that the Line hotel may have tried to boost its local hiring numbers by listing chefs, architects, and sales people, among others, as construction workers.
In case you missed it last week. Watch the 9th Annual IRS/TPC Joint Research Conference on Tax Administration online here. You can also read paper abstracts and speaker presentations.
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- © Urban Institute, Brookings Institution, and individual authors, 2016.