Shouldn’t tax cuts be easy to sell before midterm elections? One would think, but The Washington Post explains why Republicans are having a hard time. For example, voter may not see the benefits of tax relief until later this year. And President Trump, who could be out promoting the tax cuts, is mostly focused on non-tax issues. But, “if Republicans can use the bill to excite their own voters and persuade independent voters that the country is headed in the right direction under their leadership… they might still lose, but it might not be a tsunami,” says Nathan Gonzales, editor of Inside Elections. Easy breezy, right?
A new sales rep for the TCJA. Ivanka Trump seems to have taken over for her father as chief promoter of the Tax Cuts and Jobs Act. Last week, she touted the tax cuts at events in New Hampshire and Ohio. A few weeks ago, in West Virginia, the president ditched a tax reform speech that he declared “boring.” Instead, he spoke about immigration and repeated unproved claims that “millions” of people voted illegally for Hillary Clinton in 2016.
At least banks are happy… The Associated Press reports that the six big Wall Street banks posted record, or near record, profits in the first quarter of the year. Banks earned more from lending thanks to higher interest rates, but the big earnings boost came from the billions of dollars they saved in taxes thanks to the TCJA: At least $3.59 billion last quarter.
States are missing the point when it comes to taxes and spending. TPC’s Vanessa Williamson reviews Cristobal Young’s book “The Myth of Millionaire Tax Flight.” Young argues that blue state that are scrambling to protect high-income residents from the TCJA’s cap on state and local tax (SALT) deductions don’t get it: Hardly anyone moves from state to state to reduce their taxes. At the same time, red states that are unwilling to raise taxes to pay for eduction don’t get it either: Families do move for better schools.
A bill for small business and tax compliance. GOP Senators Dean Heller of Nevada and John Cornyn of Texas introduced a bill last week that aims to reduce tax compliance burdens for small businesses. The bill would also increase accountability for IRS misconduct.
In Colorado, fire chiefs say state tax laws risk lives. Colorado fire officials say that two state laws that effectively limit property taxes risk lives because fire districts must defer building new facilities even if the population grows. The problem: a 1982 law called the Gallagher Amendment combined with the state’s Taxpayers Bill of Rights (TABOR), means that tax assessments reflect only 7.2 percent of the value of a home. Next year, tax assessments will fall to 6.1 percent. The fire chiefs want the assessment rate frozen for four years, but no lawmaker has yet introduced a bill.
In Thailand: A plea to change its cryptocurrency tax framework. Thailand’s plan to levy a 7 percent value added tax (VAT) on cryptocurrency trades and a 15 percent capital gains tax on returns from digital money is getting pushback. A consultant to the Thai Securities and Exchange Commission as well as members of the local cryptocurrency community want the nation’s financial authorities to reconsider the tax framework for currencies like Bitcoin. They are urging a least a delay in implementing the tax on digital assets.
If you’d like to tell us about a new research paper or have any comments about the Daily Deduction, TPC’s summary of the day’s tax news, write Renu Zaretsky at [email protected]. You can sign up here to receive the Daily Deduction as an email newsletter every weekday morning (Mondays only when Congress is in recess) at 8:00 am.
