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The GOP calls for Affordable Care Act repeal in its budget resolution. The 10-year plan would cut planned spending by more than $5 trillion, retain the $1.017 trillion sequestration budget ceiling for 2016, and increase off-budget military spending. It would also use budget reconciliation to try to repeal the ACA. The plan is non-binding, but outlines GOP spending priorities ahead of the 2016 election. The House is expected to vote on the plan tomorrow. Hill Republicans have until October to turn the blueprint into a real budget.
Tax filing season was relatively smooth for those with ACA subsidies. But there were differences between those who filed with H&R Block and those who used Turbo Tax, according to the two big tax prep firms. TPC’s Howard Gleckman looks at the experiences of those who got ACA subsidies that were either too big or too small.
The Texas House passed some tax cuts; will the Senate go along? The lower chamber approved two bills cutting the state’s sales and business taxes. The House plan, with a two-year, $4.9 billion price tag, cuts the sales tax rate by 0.3 cents and includes a 25 percent rate cut to the business franchise tax. The Senate, and Lieutenant Governor Dan Patrick, would prefer a school property tax break. That plan would cost $4.4 billion.
And in Connecticut: A call for tax hikes. The state’s Democratic-controlled Senate Finance Committee wants, among other things, to raise the state income tax on the wealthy and for the first time levy sales taxes on accounting, architectural, engineering, and veterinary services. The top personal income tax rate would go up from 6.7 percent to 6.99 percent for single filers earning $500,000 or more, or for joint filers earning $1 million or more. Filers at these income levels would also be subject to a new capital gains tax rate of 2 percent. The tax increases would raise $1.8 billion over the next two years.
Across the pond: A promise to make tax hikes illegal. UK Prime Minister David Cameron promises to introduce a “five year tax lock” law in his first 100 days, should he win another term in office. If passed, the law would bar any increases in income and sales taxes before May 2020. The British election is on May 7 and the Labour Party, Cameron’s main opposition, is leading the polls--but just barely.
And the European Union could make Apple swallow a bitter tax pill. The multinational says the EU’s inquiry into Ireland’s tax deals could result in a “material” impact on its earnings. If the EU decides Ireland’s state aid to the company was unfair, Apple might have to pay back taxes for up to 10 years.
On the Hill today. The House Ways & Means panel’s Subcommittee on Human Resources holds a hearing on “Ideas to Improve Welfare Programs to Help More Families Find Work and Escape Poverty.”
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Posts and comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.