Tax reform: The House Freedom Caucus which thwarted President Donald Trump’s ability to repeal the Affordable Care Act may also imperil Paul Ryan’s tax reform plans.
The question is whether GOP leaders have the power to create a revenue-neutral tax plan — which inevitably means taking on big constituencies who would lose out under the new tax laws.
One option could be temporary cuts, which Ryan likely views as better than nothing.
More: “Ryan’s Tax Plan May Get Familiar Foes: GOP’s Conservative Caucus,” Sahil Kapur, Bloomberg. Continue reading “Jared Kushner’s Russia contacts, tax reform, UMN Profs: Monday’s Tax Brief” »
Here are some stories on my radar this Friday.
KfW: A technical glitch resulted in the German state-owned bank KfW mistakenly sending $5.4 billion to four other banks. And this has happened before. (Bloomberg)
Obamacare repeal: Not quite. The GOP didn’t have enough votes for the Obamacare repeal bill, so it got pulled Friday. Most outlets are characterizing this something between an “embarrasing loss” and a “huge setback” for Trump’s agenda. (The Hill) Continue reading “Obamacare repeal, KfW, Jamie Gorelick: Friday’s Tax Brief” »
Philadelphia is raking in more money than expected from its 1.5-cent-per-ounce soda tax.
The sugary beverage tax brought in $6.4 million in February, slightly more than January but on-target with projections.
Meanwhile, soda manufacturers are downsizing their soda offerings as a response. The Philadelphia Inquirer reports that mini-cans and 1 liter bottles are now en vogue with manufacturers because they incur less tax.
Pepsi said that its “larger package” sales have taken a 50% hit in the city with overall sales down 40%. Pepsi also plans to lay off up to 100 workers in the city.
The tax started in January, and the Philadelphia hopes that it will bring in $91 million annually. The money goes to fund pre-K and upgrading city park and rec centers.
Although the tax is starting strong, it is also under appeal — the next court date is in Pittsburgh on April 5.
More: “Coke, Pepsi fight soda tax with smaller bottles,” Joseph N. DiStefano, The Philadelphia Inquirer. Continue reading “The Dramatic Impact of Philly’s Soda Tax: Thursday’s Tax Brief” »
The GOP’s proposal for a Border Adjustment Tax may help out companies such as construction manufacturer Caterpillar, Inc., which is currently facing a federal tax evasion investigation.
Prosecutors accuse Caterpillar of hiding its profits in Switzerland, however the company maintains that its tax arrangements are perfectly legal.
The company reportedly gave a Swiss subsidiary legal rights to its global replacement parts business, which means that the profits accrued in Switzerland instead of the U.S.
The GOP’s Border Adjustment Tax plan would make this type of tax arrangement unnecessary by not taxing the overseas sales of U.S. companies. (Currently, U.S. corporations are taxed on their worldwide income.) Continue reading “Caterpillar & The Border Adjustment Tax: Wednesday’s Tax Brief” »
Today the Texas Senate approved Sen. Jane Nelson’s bill to gradually cut the state’s franchise tax. (Texas Tribune)
I covered the basics of Nelson’s tax bill last November, but the gist is that it would reduce the franchise tax rate by 2.5% per year if the state’s comptroller certifies there are available funds over the biennial revenue estimate.
Note that this is dramatically different than the bill proposed by Sen. Craig Estes (Wichita Falls) which would have completely released the franchise tax in 2018.
More: “Texas Senate passes bill to cut franchise tax paid by businesses — later,” Jim Malewitz, The Texas Tribune.
“Texas GOP lawmakers hope tax cuts will boost the state’s growth,” Dennis Jansen, The Dallas Morning News. Continue reading “Texas Small Business Taxes & More: Tuesday’s Tax Brief” »