Tax filing: What's changed around the country?
Some Oregon Democrats propose an alternative state corporate tax hike.聽They want to raise an additional $1 billion from business over the next two-year budget cycle to fund public education and cut personal income taxes. Their bill would聽聽with a commercial activity tax of 0.39 percent on a business鈥檚 annual sales above $1 million. Will their effort derail another tax increase up for consideration, a $5.2 billion plan to hike the corporate tax rate? They hope so.
Another California town considers a soda tax, through bubbles of criticism.聽The city of Davis could follow Berkeley鈥檚 2014 success and pass a 1-cent-per-ounce聽. Mayor Pro-Tem Robb Davis has called on the city council to put the initiative on the June ballot. They have about two weeks to decide. Soft drink and distribution companies are, predictably, trying to kill the effort.
Tax filing season is in full swing, but Maine鈥檚 lawmakers are still considering tax break extensions.聽The federal government has extended a $250 tax deduction for school-related expenses paid by K-12 educators as well as a higher maximum deduction for depreciable assets held by small businesses.聽聽whether to include these breaks in the Maine tax code on a temporary or permanent basis. Republicans want the certainty of permanent breaks, while Democrats wonder if the money might be spent on other pressing needs. Sound familiar?
Will Cleveland cancel out Governor John Kasich鈥檚 state tax cuts?聽Cleveland Mayor Frank Jackson proposes to聽聽from 2 percent to 2.5 percent. He claims the city lost $111 million since 2011 due to cuts in state funding for local governments, and reductions in taxes on estates, tangible personal property, and commercial activity.
In Virginia, a state senator wants to raise taxes to fund transportation.聽Senator Frank聽聽the states鈥� current 2.1 percent wholesale gas tax. Instead, he鈥檇 create a per-gallon tax on gasoline retailers that would rise or fall with the wholesale price. The tax would rise as prices fall, and dip when gas prices rise. Wagner estimates the tax could generate annual revenues between $42.1 million and $118 million.
Will the UK鈥檚 Google Tax solve base erosion?聽Not according to TPC鈥檚 Howard聽聽that ad hoc solutions to the challenges of taxing the intellectual property of multinationals will never work. They do, however, generate lots of heat from some US officials who complain that other countries are soaking US-based multinationals, and others who complain these firms are making millions by gaming the system.
Too big to try?聽There鈥檚 been some talk but聽聽on comprehensive tax reform, explains聽The New York Times,聽and prospects will remain dim no matter who moves into the White House in 2017. Darkening the lights further: In 2016, Senate Majority Leader Mitch McConnell may slow-walk a variety of legislative measures that have bipartisan support but are聽鈥攊ncluding international tax reform. He鈥檚 no fan of House GOP efforts to push international reform this year.
This article first appeared at .
