Coca Cola owes more than $3 billion in taxes
On the Hill: A Freeze, a Pontiff, and a Looming Deadline.聽The House voted to freeze funding for Planned Parenthood, hoping it could help avert a shutdown by appeasing 31 seemingly-unappeasable Republicans who want to defund the organization completely. Meanwhile, the Iran deal remains a sore point. Congress has until September 30鈥攐r five business days from now鈥攖o reach agreement and keep the government open for business. Odds of a聽? Climbing by the minute. Pope Francis addresses Congress on Thursday. Maybe that will help.
Have a Coke and a bill?聽The IRS says its Coca Cola audit reveals the聽聽for 2007 to 2009. Not surprisingly, Coke will challenge the assessment. The dispute is over how the multinational reports taxable income in the US and licensing practices for subsidiaries selling products overseas.
State budgets are improving, but not necessarily over the long term.聽TPC鈥檚 Howard聽a TPC State and Local Finance Initiative聽. 鈥淭oday鈥檚 decent economy gives states a chance to build up reserves for the inevitable next downturn, reform their tax systems, and rethink how they spend taxpayer money. Unfortunately, many states are mired in ideological battles or unwilling to confront entrenched interests. In a few years, we may look back at 2015 as (yet another) missed opportunity for state government.鈥�
For example: Is an Iowa property tax cut achieving its goal?聽Iowa enacted a聽聽that is expected to provide $4.4 billion in property tax relief over ten years and $90 million annually in income tax cuts. The package includes a 10 percent roll-back on commercial property tax rates over the next two years and a tax credit for commercial property owners. It also returned some of the state surplus through a $60 income tax credit, and increased the state鈥檚 Earned Income Tax Credit. But this fiscal year, it鈥檚 costing the state $260 million and Democratic Senator Joe Bolkcom says it鈥檚聽.
Meanwhile, North Carolina鈥檚 new budget includes a big income tax cut.聽The new budget passed Friday聽聽on repair, installation and maintenance services if the item involving service would be subject to a sales tax. The theory, according to Republican lawmakers: Sales tax revenue is more reliable than income tax revenue. Said tax cut backer and GOP state Senator Bob Rucho, 鈥淭ax reform is an ongoing process. Ultimately we鈥檙e trying to get rid of income tax and move to a consumption-based tax.鈥�
But in West Virginia, the time is not right for tax reform.聽The state has a聽for the third consecutive fiscal year. State Senate President Bill Cole said the tax reform committee is 鈥済etting close鈥� to being able to craft legislation, but it wants 鈥渢o make sure we don鈥檛 put our treasury in harm鈥檚 way.鈥�
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