New Canadian Prime Minister looks to run a deficit
They鈥檙e off to see the wizard (of tax and spending promises), because鈥� of the wonderful things he does?聽TPC鈥檚 Howard Gleckman聽聽of most presidential candidates鈥� fiscal offerings. Democrat Bernie Sanders wants to make 鈥渢he rich鈥� pay a 鈥渄amned lot鈥� more in taxes to help pay for free college and universal healthcare for all. Republicans, by contrast, are all-in on big tax cuts. It takes at least a $1 trillion-tax-cut promise to get any attention at all. How would they聽 pay for such cuts? Mostly, they don鈥檛 say. Will voters demand to see the offsets behind the curtain?
Meanwhile, back in Kansas: Tax pain may be chronic.聽Last year, the state鈥檚 cash-strapped lawmakers reduced deductions for mortgage interest and property taxes and eliminated the deduction for medical expenses. That generated $97 million in new revenue but could mean a big tax hit for many聽when they file next year, especially the elderly or those with middle incomes.
Leave more than your heart, get a great tax break.聽At least that鈥檚 the case for businesses in San Francisco鈥檚 Mid-Market district. They鈥檝e been taking advantage of the 鈥�.鈥� The incentive program was designed in 2012 to retain tech firms that might have bolted for Silicon Valley. Companies stayed and avoided about $34 million in city payroll taxes in 2014, up from $4 million in 2013. San Francisco includes stock options in its payroll tax calculations and several Mid-Market district companies went public recently.
In 2016, expect more protection from taxpayer identity theft.聽The IRS and tax industry leaders have tested 20 new data elements on tax returns aimed at preventing fraudulent refunds. The new safeguards shouldn鈥檛 add much time to electronic filing but the聽聽could cost $281 million.
In Canada, a new Prime Minister with big plans.聽In a sweeping Liberal victory, Justin Trudeau is now our northern neighbor鈥檚 leader. His聽聽a Canada Child Benefit for parents, worth about C$2,500 a year for a family of four. Middle-income taxpayers may see a tax rate cut from 22 percent to 20.5 percent. To cover some of the tab, he鈥檇 create a new 33 percent bracket on earnings over C$200,000. To help pay for public transportation, Trudeau plans to run deficits of C$25 billion over three years to take advantage of low interest rates, but promises to bring the nation back into the black by 2019.
On the Hill: Paul Ryan issues an ultimatum.聽The House Ways & Means Chair from Wisconsin聽聽for Speaker of the House if every caucus endorses him and accepts him as "unity candidate." They have until Friday to decide.聽The Hill聽reports that Ryan聽said, "I know this sounds conditional, because it is."
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