The voices of Tax Policy Center's researchers and staff
Texas Governor Greg Abbott says “no” to a tax break for big corporations. The Republican just vetoed a bill aimed at expanding a tax incentive for wind farms and petrochemical firms along the Gulf Coast. Subsidy backers claim it helps the firms generate jobs, but Abbott doesn’t think it’s worth the money. A 2013 study found that each job the program creates costs state taxpayers about $340,000.
Mexico’s sugar tax may be paying off. That’s according to preliminary results from a study by the Mexican National Institute of Public Health and the Carolina Population Center at the University of North Carolina. Purchases of sugary beverages dropped 6 percent after the tax took effect. The study adjusted for factors such as the overall downward trend in soda consumption, wages, and unemployment. The researchers found that Mexican consumers are drinking less soda with the tax, and more water.
In Colorado, the refunds will keep coming. Continued economic growth and the state’s Taxpayer Bill of Rights will assure that Colorado’s wage earners will get about $221 million in tax refunds in 2016. Of that, $83.6 million goes to those qualifying for the Earned Income Tax Credit. Taxpayers will get the remaining $137.3 million in as sales tax credits.
On the Hill this week: Trade, the ACA, TIGTA, and Highway Funding. Both chambers will continue work on trade legislation, including votes in the Senate on tax-related bills. On Wednesday, the House Ways & Means panel’s Oversight Subcommittee will hold a hearing on the effect of the Affordable Care Act on insurance premiums. The panel’s Select Revenue Measures subcommittee will discuss repatriation and highway funding. On Thursday, the House Oversight and Government Reform Committee will get an update from the Treasury Inspector General for Tax Administration on the never-ending saga of former IRS official Lois Lerner’s emails. The Senate Finance Committee will review state innovations in financing transportation.
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