Bipartisan change of rules for hedge fund managers and more
Can鈥檛 we all just get along? (and end the carried interest tax break?)听Private equity and hedge fund managers can currently count compensation from the funds they manage as capital gains. Treasury estimates that taxing those payments as ordinary income could boost tax revenues by $18 billion over a decade. President Obama听听is something both parties could agree on in the current Congressional battle over funding the government. But the GOP鈥檚 focus on the Iran deal and Planned Parenthood makes a听.
Take my marriage penalty, please.听GOP candidate Jeb Bush promises his tax plan would听, but TPC鈥檚 Bob Williams shows how the proposal鈥攁ccording to publicly released information鈥攃an still impose large marriage penalties on low-income families that take credits such as the Earned Income Tax Credit.
On the Hill.听Today the House Way & Means Committee听,听including 鈥渆xtender鈥� bills that would make bonus depreciation and the subpart F active financing exemption permanent. The Senate Finance Committee听听of a bill to combat tax fraud, in part because an influential听 accounting group as well as some in the GOP worry the measure would give IRS too much power to regulate paid tax preparers.
Today at noon, tune in online for the State of the States.听The Urban Institute鈥檚 State and Local Finance Initiative will听听examining how tax and budget pressures affect the way state and local governments make spending decisions. Panelists include Joseph Henchman of the Tax Foundation, Nick Johnson of the Center on Budget and Policy Priorities, Ryan King of the Urban Institute鈥檚 Justice Policy Center, David Quam of the听National Governors Association, and Kim Rueben of the State and Local Finance Initiative. TPC鈥檚 Howard Gleckman will moderate.
In the United Kingdom: One step closer to reducing tax credits for low-income workers.While the Labour and SNP opposed finance minister George Osborne鈥檚 spending cuts, the Commons ultimately approved plans to听. Backers say the cuts would save 拢4.4 billion. The opposition says 3 million lower-income working families could lose an average of 拢1,000 annually.
In Canada: Perhaps a cap on the corporate tax rate.听In a tight race to unseat听Prime Minister Stephen Harper, the Socialist-leaning New Democratic Party says it would hold any increases in the听听to less than 2.5 percentage points, or 鈥渓ess than 17.5 percent.鈥� The rate is currently 15 percent. The new rate still could boost taxes by up to C$5 billion (US$3.8 billion).听 The party also proposes higher taxes on stock options and cuts to the small-business tax rate. The Canadian election will be held on October 19.
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