The voices of Tax Policy Center's researchers and staff
WWND: Louisiana lawmakers ask Grover Norquist to weigh in on Governor Bobby Jindal’s tax plan. Eleven members of the state’s House sent a letter to the head of Americans for Tax Reform. They call the SAVE tax credit—Jindal’s proposed tax credit for a non-existent student fee—a precedent that would let lawmakers “raise taxes on a nearly unlimited basis, and then claim revenue neutrality solely based on the creation of a purely fictional, procedural, phantom, paper tax credit.” Jindal wants the credit to offset other tax increases and help keep his “no tax pledge.” What Would Norquist Do?
The Kansas Senate just passed the largest tax increase in state history. And GOP Governor Brownback says "it's time to get this done." Late Sunday night and after much conflict, the Senate managed to pass a $471 million package that the House will debate today. The bill increases sales and cigarette taxes, repeals most itemized deductions, shrinks deductions for property taxes, charitable contributions, and mortgage interest, and raises taxes by $24 million on business owners. Senators in favor of the bill include 14 GOP members who made a “no tax pledge.”
And in Ohio, a plan for tax relief. The Senate released a $1.7 billion tax relief proposal yesterday, which includes a cigarette tax increase of 40-cents-per-pack and a tuition freeze at state colleges and universities. Meanwhile, Governor John Kasich, a possible GOP presidential contender, has his eye on a future flat tax.
The EU expands its search for member nations’ tax loopholes. The European Union’s antitrust chief would like details on specific agreements between multinational companies and 15 nations, including Germany, France, and Italy. Meanwhile, Poland and Estonia may face legal action if they fail to provide information about their tax deals: They have one month.
India’s international tax reform effort will require patience. Prime Minister Narendra Modi has promised stable and competitive tax rules: He wants greater investment in India to boost the economy and curb poverty. But Bloomberg reports that fewer than 20 officials are working on transfer pricing agreements with hundreds of multinationals. So far, the government has completed only 11 out of 580 applications. The program began in 2012.
As for the United States, tax reformers may need patience. Pre-election tax reform seems to be falling off the table. TPC’s Howard Gleckman explains why we should pay final respects to any chance of tax reform in the near future. Maybe 2017?
Interested in subscribing to the Daily Deduction, the Urban-Brookings Tax Policy Center summary of the day’s tax news? Sign-up here to get the Daily Deduction delivered to your inbox every morning. If you’d like to tell us about a new research paper or have any comments about our feature, write us at firstname.lastname@example.org.
Posts and Comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.