If at first you don’t succeed… Politico reports that the Trump Administration is developing its third tax plan in a year. This time, the White House wants to handle the details and flesh out the plan internally—rather than relying on Congress to take the lead. The new tax plan may not include Speaker Ryan’s border-adjustment tax, a major revenue source. If not, the tax plan’s offsets may “become a lot more ugly,” said one Hill staffer. Meanwhile, Reuters reports the Administration still doesn’t have the staffing power to create a full plan.
Location, Location, Location? One iteration of Trump’s tax plan would give nearly all of New York City’s millionaires big tax cuts. That’s according to a report from the city’s Comptroller, which also finds that more than one-third of moderate- and middle-income families would face tax increases. Over $5 billion in tax cuts would go to New York City residents; nearly two-thirds to those earning more than $500,000.
Michigan’s Republican lawmakers find room for a tax cut in GOP Governor Snyder’s budget. Snyder proposed a $205 million boost in spending for the fiscal year starting in October. The GOP-led Senate would set aside $500 million in “uncommitted” funds that could be used to later reduce taxes One idea, trimming the 4.25 percent income tax to 4.15 percent, would cut revenue by $190 million in the first budget year. House Speaker Tom Leonard says “I believe we can afford tax relief.”
Car talk in Rhode Island. In the state house, there is growing talk of repealing an annual car tax, which many Rhode Islanders hate. The tax varies by municipality and is highest in Providence: $60 for every $1,000 of a car’s assessed value. Democratic Governor Gina Raimondo would cut the tax by 30 percent, while House Speaker Nicholas Mattiello of Cranston wants to phase it out over five years. The problem: Cities and towns are very dependent on the $220 million the car tax raises.
Do as I say, not as I did. Switzerland’s Credit Suisse pleaded guilty in 2014 and owed $2.6 billion in fines to US authorities for its role in helping wealthy Americans evade taxes. Last Thursday, tax authorities searched its London, Paris, and Amsterdam offices as part of an international tax evasion and money laundering investigation. Yesterday, the bank ran ads in UK newspapers to emphasize its zero-tolerance policy for tax evasion.
This week on the Hill. The Committee on Small Business will meet for a hearing titled, "Scam Spotting: Can the IRS Effectively Protect Small Business Information?” on Thursday, April 6.
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