The House votes on the AHCA today, with new numbers to consider. A new analysis from TPC and the Urban Institute finds that while the average household would see almost no change in their finances if the American Health Care Act replaces the Affordable Care Act, tax cuts would go mostly to the rich while reduced support for healthcare would disproportionately affect low- and middle-income households. Those making less than $10,000-a-year would lose an average of about $1,400, or nearly one-third of their income with the AHCA. Those making $200,000 or more would receive an average net increase in government support of $5,640, or 1.1 percent of their income.
As for the border adjustable tax in the House GOP tax plan… Hedge fund managers could be big winners. TPC’s Steve Rosenthal explains that “Part or all of the services the managers render to a hedge fund [would likely be] exempt from U.S. taxes under the border-adjustment tax.” That could save them tens of billions of dollars a year. Why? A large number of hedge funds have mailing addresses overseas. Investment professionals, like fund managers, are here in the US, and exported goods and services are exempt from taxation under a border adjustable tax.
White House on a carbon tax: No. On Wednesday, the White House clarified Press Secretary Sean Spicer’s remarks made Tuesday. Spicer had indicated “there’s a lot of pieces in this that we need to examine and get to and there’s a lot of voices and opinions that get shared” with President Trump. The White House has now clarified that ““The Trump administration is not considering a carbon tax.”
Seattle’s gun tax raised less than $200,000 in its first year. City Council Member Tim Burgess reports that the tax on firearms and ammunition affected about 15 potential taxpayers in 2016. The city won’t spend the revenue until the courts decide a 2015 lawsuit against the tax.
A mere 2 percent of Indians pay taxes in India. Why? NPR reports a few reasons. Most Indians are too poor to pay—the country’s $1,600 annual per capita income is less than half of the $3,700 threshold for paying taxes. Tax compliance is low, too, in part because Indians tend to prefer cash transactions, leaving no paper trail for enforcement efforts.
Indonesia scores big with tax amnesty. At least 745,000 taxpayers have declared more than $330 billion of assets since the nation’s tax amnesty program went into effect on July 1, 2016. The revenue will help boost infrastructure spending and growth. Indonesia’s President Joko Widodo says it’s time now for tax reform to improve tax collection. Tens of millions of Indonesians across the income spectrum remain outside the tax system.
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