US DOJ: Congress cannot subpoena President Trump’s financial records. The Justice Department makes that case to the US Supreme Court, where it argued in a brief that the multiple subpoenas of President Trump’s tax returns and other financial records are unconstitutional, even when the requests are made to third parties. The cases involved efforts by congressional committee to see records held by Mazars, Deutsche Bank, and Capital One. An appeals court previously ruled the firms had to turn over the documents. The Supreme Court will hear oral arguments on March 31.
“The Disappearing Corporate Income Tax.” The House Ways & Means Committee will hold a hearing on Tuesday on the small amount of taxes large companies have paid since passage of the Tax Cuts and Jobs Act (TCJA). The panel will hear testimony on Treasury regulations and low IRS audit rates of large corporations.
A Florida Senate committee approves tax breaks for… car rental agencies. Big rental car companies like Avis and Hertz have been lobbying Florida lawmakers to reverse a state income tax increase that was an indirect result of the TCJA. The new federal tax law limited tax benefits for car rental and leasing companies that sell or trade used vehicles. The companies had deferred Florida corporate income tax on those transactions but lost that ability after passage of the TCJA. The change could save the rental companies as much as $2 million each.
Speaking of tax writing lawmakers: McDreamy in Congress--on TV. Actor Patrick Dempsey, who was Dr. Derek “McDreamy” Shepherd on ABC’s Grey’s Anatomy, is now set to play a very different role. The press release says he’ll be “a powerful congressman who’s disenchanted with politics—until he meets a congresswoman on the other side of the aisle. Together they plan to break gridlock and save American politics.” The pilot episode, set to air on CBS, is called “Ways & Means.” Really.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at firstname.lastname@example.org.
Posts and comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
- © Urban Institute, Brookings Institution, and individual authors, 2020.