The “Cadillac tax” has a loyal pit crew. A bipartisan group of 101 economists and health experts have co-signed a letter urging Congress to retain the tax on high-cost health insurance plans. A bipartisan group of lawmakers is moving to kill the Affordable Care Act levy, which is scheduled to take effect in 2018. Backers argue that the tax will slow the rise of healthcare costs by encouraging employers to limit insurance benefits. They want Congress “to take no action to weaken, delay, or reduce the Cadillac tax until and unless it enacts an alternative tax change that would more effectively curtail cost growth.”
More on GOP candidate Donald Trump’s tax plan… Despite Trump’s promise to bar the use of carried interest, TPC’s Howard Gleckman says the overall plan would be a sweet deal for investment managers, or anybody who turns himself into an independent contractor. Meanwhile, Trump plans to keep the Earned Income Tax Credit and the Child Tax Credit. TPC’s Elaine Maag notes that “most people could earn more money without owing taxes…since they would still get their refundable EITC and CTC.”
And about that Trump tax plan’s price tag… As for how Trump would pay for his tax plan? Cost cutting: He guesses that the US loses “tens of billions of dollars” because of incompetence, theft, and wasteful spending, and promises “tremendous cuts” to the federal budget. He promises to specify those cuts in “phase two” of his tax plan’s rollout.
Oregon’s recreational pot users can buy marijuana tax free through the end of this year. They were able to start buying yesterday, but the state won’t tax any sales at 25 percent until January. Lawmakers will spend the next several months developing a framework for taxation and licensing.
In Greece, six islands lose their sales tax break. The sales tax increased by 30 percent for some Aegean Islands yesterday, after decades of a lower Value Added Tax rate. It had been lower than the rest of the country to offset higher transportation costs and keep permanent residents from moving. The Greek economic crisis and European Union bailout forced the increase. Much of the cost will likely be passed on to tourists.
Interested in subscribing to the Daily Deduction, the Urban-Brookings Tax Policy Center summary of the day’s tax news? Sign-up here to get the Daily Deduction delivered to your inbox every morning. If you’d like to tell us about a new research paper or have any comments about our feature, write us at dailydeduction “at” taxpolicycenter “dot” 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.