Pensions and tax bases: What to look out for in taxes this week.
The thing about pension smoothing: The bumps always come back.听听for a Responsible Federal Budget nor TPC鈥檚 Len Burman 飞颈濒濒听听when it comes to the latest gimmick to patch the Highway Trust Fund. Maybe 鈥渟tupid tax tricks鈥� work politically but 鈥減retending to raise revenue, while adding to our long-run fiscal woes and undermining the retirement security of American workers鈥� is a real wrong turn. The House Ways & Means Committee听, and听听on the House floor next week.听听members of the Senate Finance Committee have reached a tentative deal on a similar measure.
Public pension obligations in Flint may put the city on Detroit鈥檚 path.听The former auto-industry boomtown in Michigan has a severely eroded tax base, and听听to avoid bankruptcy. A judge will soon decide if Flint can. Flint鈥檚 budget deficit is $12.9 million, and wants to find $5 million this fiscal year by increasing retiree contributions to health insurance and requiring higher deductibles and co-pays.
The fiscal state of states includes a public pension report card.听The听听from TPC鈥檚听听notes trends in employment, state government finances, housing, and economic conditions. Overall, nearly all states enjoyed economic growth in 2013, but tax revenues are down this year and may fall further. Its report card on public pensions, in a special supplement from the Urban Institute鈥檚 Program on听, evaluates pension financing, the level of retirement security offered to short- and long- term employees, and workforce incentives. The message: There鈥檚 room for improvement.
India鈥檚 financial report card shows room for improvement, too.听Asia鈥檚 third largest economy听, a quarter of the average in the OECD group of developed nations. Its Finance Ministry yesterday called for lower spending on food and fertilizer subsidies and broadening the tax base. But tax reform would be听.
How about a common corporate tax base for the European Union?听The future European Union Commission President Jean-Claude Juncker would like one. That way,听听would be paid where profit is made, removing unfair competition among EU states over tax rates.
