A roundup of this week's tax news
Washington residents will likely see tax cuts鈥攖he largest in 15 years.聽The DC Council聽, a plan based in part on recommendations made by the聽DC Tax Revision Commission. Tax burdens for low- and middle-income residents would decrease in January. For four years after, businesses, residents earning up to $1 million annually, and those who inherit multi-million-dollar estates would also enjoy tax relief. Lame-duck mayor Vincent Gray had earlier backed revenue generating aspects of the commission鈥檚 plan. Council Chair Phil Mendelson, who brought the plan to a Council vote, offset the tax relief package with聽funds set aside for street cars. The plan will have its final vote next month and is expected to pass.
There鈥檚 a lot of support to cut New England鈥檚 highest corporate tax rate.聽Rhode Island鈥檚 Senate Finance Committee is considering聽聽the state鈥檚 corporate income tax rate from nine percent to seven percent and change the way some corporations are taxed. The聽Committee heard from聽a broad range of supporters who want to see the state become more competitive with other states and more attractive to corporations.
Tax increases in France, designed to cut the nation鈥檚 deficit, aren鈥檛 cutting it.聽French tax receipts in 2013 did grow by 15.6 billion euros since 2012, but聽聽by 14.6 billion euros. French households may be feeling some pain from the higher tax burden: Consumer spending has dropped .5 percent in the first quarter of 2014 and an additional 0.3 percent in April.
Big code on campus?聽The tax code could be changed in a number of ways to make higher education more affordable for middle-class families,聽聽from the Center for American Progress. The report suggests changes to, among other tax provisions, college savings incentive programs, the American Opportunity Tax Credit, and the student loan interest deduction. Every bit certainly helps,聽given student debt聽loads.
How do you solve a problem like greenhouse gases?聽They鈥檙e a non-toxic global pollutant and they come from a variety of sources in a variety of states. But the Environmental Protection Agency聽is required聽under the Clean Air Act to set emissions standards for each source, while states are expected to write compliance plans for each. This makes no economic sense, says Adele Morris of the Brookings Institution. In聽her TaxVox post she considers聽three better options: 1) a聽, 2) state carbon taxes in lieu of EPA emissions standards, or 3) an EPA-approved聽聽to use a carbon tax as part of their Clean Air Act compliance plans.
