Taxes: On cuts, sins and severance
There鈥檚 more than one way to cut a tax. Wisconsin just enacted a , including $406 million in property tax reductions and $98 million in lower state income taxes. Minnesota , benefiting among others, 鈥渃ollege students, educators, lower income families and those with mortgage insurance deductions.鈥�
There鈥檚 one way to tax a 鈥渟in.鈥� Smoking rates remain stubbornly high among low-income populations and follow a geographic divide, reports the . A pack of cigarettes costs about $5 in Clay County, Kentucky, but nearly double that in New York City after state and local taxes. You can review regional variation in tobacco tax revenue .
And severance payments? Payroll taxed. The US Supreme Court ruled yesterday that severance payments made to 3,100 employees of Quality Stores, Inc., are 鈥渨ages,鈥� and聽 subject to the , reports . The decision could block more than $1 billion in refund claims.
As for those expired tax provisions: TPC鈥檚 Howard Gleckman considers House Ways & Means chair Dave Camp鈥檚 plan for them. He wants his panel to decide whether each should be permanent or killed on its merits鈥攁n 鈥溾�� that, in Congress鈥� hands, might be perfunctory at best, and not paid for at worst.
And what about Bitcoin? The IRS provided long-awaited guidance on the such as Bitcoin. Its ruling: Bitcoin is property and not currency for federal tax purposes. As a result, consumers have a capital gain or loss when they exchange digital currency for goods and services.
Today on the Hill: The House Committee on Oversight and Government Reform continues its examination of the IRS response to the flap over its handling of applications for tax-exempt status by political groups. At a , IRS Commissioner John Koskinen will be the sole witness. The Senate鈥檚 Special Committee on Aging holds a on Medicare fraud and how to protect seniors and taxpayers.
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