The tax bill is enriching corporations, not workers, says a… GOP senator? Senator Marco Rubio told The Economist that US workers are getting few direct benefits from the corporate tax cuts in the Tax Cuts and Jobs Act. “There is still a lot of thinking on the right that if big corporations are happy, they’re going to take the money they’re saving and reinvest it in American workers. In fact they bought back shares, a few gave out bonuses; there’s no evidence whatsoever that the money’s been massively poured back into the American worker.”
The gift that keeps on giving… Speaking of the TCJA, House Ways & Means Chair Kevin Brady would like to revisit the law annually to “make it more competitive, more innovative, more family-friendly.” It certainly would keep K Street busy.
Bashing a carbon tax. GOP congressmen Steve Scalise of Louisiana and David McKinley of West Virginia have re-introduced a nonbinding sense of Congress resolution that "a carbon tax would be detrimental to American families and businesses, and is not in the best interest of the United States.” The lawmakers and a coalition of conservative groups say that the tax would undo the benefits of the TCJA.
Wisconsin’s governor’s race sees a range of Democratic tax proposals. Paul Soglin, mayor of Madison, would lower homeowner property taxes by up to 25 percent and raise income taxes on the top 3 percent of earners. Mike McCabe, a former nonprofit executive, would reduce the sales tax from 5 percent to 4.5 percent but expand it to include goods and services such as airplane parts, health club fees ,and professional services. Kelda Roys, a former state representative, would repeal a fee on hybrid and electric vehicles but levy a new tax on certain heavy trucks to pay for road repairs. GOP Governor Scott Walker continues to promise to lower property taxes, but has not released any additional tax proposals.
Los Angeles County considers a parcel tax to improve water quality. County officials may ask voters to approve this November a tax on properties that are likely to reduce water quality. The tax would be between 3 and 4 cents per square foot of land that is impermeable to water, like roofs, driveways, garages, and parking lots. The county would use the revenue to improve water quality, support compliance with federal clean water regulations, and make the region more “water resilient.” The parcel tax, which is a way to get around the state’s Proposition 13 property tax limitations, would generate $400 million a year. A similar measure in 2013 didn’t get off the ground. Only property owners would have voted on that initiative.
And San Mateo wants one to pay for schools. Two San Mateo, California school districts are seeking their own parcel taxes to fill school funding gaps. One wants a $118 annual tax that could raise $70 million over five years. Another is asking for a $97 levy to raise $700,000 over five years. Voters will decide on June 5.
While other communities consider different local taxes to support schools. In Springfield, Illinois, a recent poll finds 73 percent of the city’s registered voters would support a county-wide 1 percent sales tax increase to improve schools. The results may prompt local officials to put the tax increase on the November ballot.
Philippines’ tax changes: Not to worry, says finance department. The nation’s revenue agency plans to eliminate $5.8 billion in business tax breaks, equal to 2 percent of the country’s gross domestic product. But these changes would only apply to new investment. “Don’t be afraid,” said Charito Plaza, director general of the Philippine Economic Zone Authority. “The government won’t renege on contracts.” Some companies have put expansion plans on hold as a result of the expected changes.
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