Tax reform and infrastructure: What are the chances? According to a survey of National Association of Business Economics members: They’re low. About 4 out of 5 members do not expect Congress to pass an infrastructure bill until at least next year, and 3 in 5 don’t expect tax reform before next year.
Who’s fleecing who? Arizona GOP Sen. Jeff Flake wants to shear a tax write-off for landowners who raise alpacas, wooly cousins of llamas. Today, alpaca ranchers can deduct from federal income tax the purchase price and maintenance of their land since the animals are considered livestock. There are 140,000 alpacas in the United States, but the cost of the tax expenditure associated with them is undetermined, according to Sen. Flake’s report, “Tax Rackets: Outlandish loopholes to lower tax liabilities.”
Economists say yes to CEA nominee Kevin Hassett. A diverse group of 44 economists has written the Senate Banking Committee urging confirmation of Kevin Hassett to lead the White House Council of Economic Advisers. Hassett is currently an economist with the American Enterprise Institute. Economists expressing support include former CEA chairmen Jason Furman and Alan Krueger, former Federal Reserve Chairman Ben Bernanke and former CBO director Doug Elmendorf.
Kansas Republicans edge closer to a veto-proof tax and spend plan. Or so they hope. House and Senate lawmakers plan to pair tax increases with a new school funding plan. They would set three income tax brackets: 3 percent for married couples earning up to $30,000, 5.25 percent on income between $30,000 and $100,000 and 5.6 percent on income above $100,000. They would also end exemptions on certain kinds of business income and some sales tax exemptions. The proposal would raise over $1 billion over two years and all revenue would go to schools.
Texas sales tax revenue reflects an expanding state economy. State sales tax revenues were $2.5 billion in May, 4 percent more than in May last year. Sales tax revenue is the largest source of revenue for Texas, reflecting 56 percent of tax collections.
In India, a different kind of gold rush. The world’s largest democracy set the tax rate for gold at 3 percent under its new goods and service tax, lower than an expected 5 percent. The tax rate takes effect on July 1. Shares of jewelers climbed in India, home to gold’s second largest market.
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