Congress is in recess. The Daily Deduction will publish Mondays until Congress returns in mid-September.
Wisconsin Governor Scott Walker cut taxes in his state, so as President… Well, he hasn’t released specific federal tax proposals. But in Wisconsin, he’s cut taxes by $2 billion in the past two years and another $2 billion is scheduled over the next two years. Cuts have come largely in property and income taxes. Walker’s spokesperson says that the Governor believes that money and decisions about how money is spent belong to taxpayers, not the government.
Money and how it’s borrowed, however, continue to be under Walker’s realm. TPC’s Howard Gleckman examines why Walker agreed to $250 million in public financing for a $500 million sports facility. Taxpayers will also pay an additional $170 million in interest on the public bonds financing the arena.
Hillary Clinton’s incremental tax agenda. She “so far seems disinterested in fundamentally restructuring the code. Instead, she’d retain the framework of the current tax law, while tweaking the code to encourage—or discourage—certain activities,” says TPC’s Howard Gleckman.
Massachusetts’ sales tax holiday may boost in-person sales revenue. The Retailers Association of Massachusetts estimates $200 million in sales that would have otherwise gone to online retailers or sellers in New Hampshire. Association president Jon Hurst appreciates the holiday and says, “I’m not sure most people fully understand how quickly mobile commerce is growing and shifting more sales online, the bulk of which are tax-free.” It’s not clear that most people understand that the bulk of those online sales—absent the tax holiday—are not tax free in Massachusetts.
It’s always darkest before the dawn, and for the IRS, it’s going to be a long night. The Hill reports that the House GOP will likely seek additional cuts to the agency’s budget during fiscal negotiations later this year. Ohio Congressman Jim Jordan says his conservative House colleagues will continue to try to remove Koskinen from office this fall, perhaps by coordinating impeachment proceedings between the Oversight and Judiciary panels.
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