It looks like another stopgap spending bill is in the offing. On Friday, House Speaker Nancy Pelosi indicated she and Senate Majority Leader Mitch McConnell agreed to attach a coronavirus relief bill to the $1.4 trillion spending package needed to fund the government after December 11. But negotiations continue over details of both the spending bill and coronavirus relief. A one-week continuing resolution to keep the government funded is likely.
A federal resolution to the fight over taxing remote work? Politico reports there is growing interest in at least a temporary federal solution to the battle over how states tax remote work. Since the pandemic has forced millions of people to work from home, cash-strapped states and cities have been squabbling over who gets to tax their wages and salaries—the jurisdiction where their usual workplace is located or the location of their new home office. Without a resolution, many taxpayers could be in for a nasty surprise come April 15.
Argentina moves a wealth tax to fund coronavirus relief. The nation’s Senate passed a one-time wealth tax on assets exceeding $2.4 million. About 12,000 Argentines would pay a progressive rate of up to 3.5 percent on wealth held in Argentina and up to 5.25 percent on assets held outside the country. About 500 Argentines hold tax residency abroad , more than half in Uruguay. The measure could raise $3.67 billion.
In the Czech Republic, a plan for a record tax cut. Billionaire Prime Minister Andrej Babis proposed cutting the effective personal tax rate of 20 percent to 15 percent as an additional stimulus for the nation’s pandemic-ravaged economy. Czech central bank governor Jiri Rusnok warns that the plan puts a heavy long-term burden on state finances and that it would mostly benefit top earners, who are more likely to save the windfall, not spend it.
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