Senate Democrats are increasingly skeptical of bipartisan infrastructure plan’s pay-fors. In the deal negotiated by President Biden and a bipartisan group of 21 senators, the $973 billion package would be funded with unspent pandemic-related unemployment benefits and state assistance, tougher IRS enforcement, and other non-tax revenue raisers. But Senate Finance Committee Chairman Ron Wyden is among several key Democrats who want higher corporate taxes to fund the plan. The Hill reports that Wyden has his own proposal to pay for an infrastructure package, and will release it when he gets the OK from Senate Majority Leader Chuck Schumer.
Tune in Thursday at noon for TPC’s Prescription with state tax expert Kathleen Quinn. Will workers owe income taxes to their state of residence or where their business is located? Kathleen Quinn, a partner at McDermott Will & Emery who focuses on state and local tax matters, will join TPC’s Howard Gleckman to discuss the tax implications of the rapid growth in remote work. Learn more and register here for the online July 8 event.
A minimum tax on aviation fuels for flights within the EU? The European Commission is drafting plans to revamp the European Union’s taxation of energy. On July 14 it will propose measures to reduce EU greenhouse gas emissions by 55 percent by 2030. They include a minimum tax on fuel for flights within the EU that would start in 2023 and gradually rise over ten years. No rate has been set. Sustainable fuels would be exempt from the new tax.
Ireland says Ní hea to OECD’s 15 percent global minimum tax proposal. Finance Minister Paschal Donohoe says his country will continue to defend its 12.5 percent corporate tax. While Ireland could support “many elements” of the corporate tax framework agreed to by 130 Organization for Economic and Cooperative Development (OECD) nations, the 15 per cent global minimum corporate tax rate is a non-starter. Ireland estimates it could cost the country €2 billion ($2.37 billion) in annual revenue. TPC’s Eric Toder discussed the issue at last week’s US Ireland Summit 2021, at timestamp 1:08 here. At least eight other OECD nations have objected to the plan.
Israeli government will join OECD’s country-by-country reporting. The OECD tax reporting plan aims to create greater transparency around multinational corporate taxes. Israel will share information reported by multinationals with revenues of at least $890 million in return for similar data from abroad.
Congress is not in session. The Daily Deduction will resume its regular schedule on Monday, July 12.
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