Who won on tax policy in last night's GOP debate?
Marco Rubio and Ted Cruz battled it out over whether Cruz's proposed tax policy would be a Value Added Tax.
Republican presidential candidate, Sen. Marco Rubio, R-Fla., speaks during the Fox Business Network Republican presidential debate at the North Charleston Coliseum, Thursday, Jan. 14, 2016, in North Charleston, S.C. Rubio and Cruz disagreed on how their tax policies would be implemented.
Chuck Burton/AP
About last night鈥檚 debate鈥μ�Marco Rubio and Ted Cruz got into it over whether Cruz's tax plan is a Value Added Tax. Rubio says it is. Cruz says it isn't. Hint: It is. Otherwise, the GOP hopefuls had little to add about their tax plans. The basics of all the candidates' plans are听here, on the听.
So much for that 鈥渋nnovation box?鈥澨�It鈥檚 a key feature of many GOP international tax reform plans, but Council of Economic Advisers Chair Jason Furman isn鈥檛 convinced. In听听The Wall Street Journal听(paywall)听he described the tax break on income from patents and other intellectual property housed in the US as economically inefficient. 鈥淎 lot of the tax incentive is for research that has already happened, and it鈥檚 hard to get more research five years ago by giving it a tax break today.鈥� If only an innovation box had a听鈥�
Guess who didn鈥檛 win big in the lottery?听California, Florida, Tennessee鈥攈ome to the听听that share a $1.6 billion jackpot鈥攄on鈥檛 tax lottery winnings. California exempts these prizes from its income tax. Florida doesn鈥檛 tax income at all, and Tennessee doesn鈥檛 tax income from wages or lottery winnings. Forty-four states sell Powerball tickets ostensibly to raise money for public schools, though states often simply reallocate general revenue funds from schools to other endeavors. Overall, lotteries increase education budgets, but only a little, as TPC鈥檚 Richard听.
Will earnings taxes in two Missouri cities be repealed?听Kansas City and St. Louis face repeal of their听听in 2017 under a state bill. Supporters of the bill argue that the taxes are unconstitutional since they provide no credit for income taxes paid in other states. But Kansas City does offer a credit for taxes paid to other cities, like St. Louis, and levies its 1 percent earnings tax on both residents and nonresidents. Missouri offers a credit to residents for any taxes paid in other states.
General Electric wants a different New England address.听The multinational will听听from Fairfield, Connecticut to Boston in return for up to $25 million in property tax savings. In addition, Massachusetts will give GE up to $120 million in grants and other incentives. GE promises to add 800 high-paying jobs.
Will India have a GST this fall?听Prime Minister Narendra Modi says yes, even though India鈥檚 parliament is听 deadlocked and Modi鈥檚 legislative agenda is in limbo.听The Wall Street Journal听听that an official in Modi鈥檚 government expects the goods and service tax could take effect听 between July and听 October. An Indian government panel suggests a rate of 17 percent.
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