Trump may have wrecked the House GOP’s business tax reform. The President-elect told The Wall Street Journal that he doesn’t “love” that destination-based cash flow tax that is the key to the House GOP’s tax reform. Trump seems to prefer low corporate tax rates and high tariffs, which won’t fly in Congress. Can Paul Ryan and friends push ahead without the President-elect’s love? TPC's Howard Gleckman isn’t so sure.
Will Treasury nominee Steve Mnuchin discuss border adjustment tomorrow? House Ways & Means Chair Kevin Brady and House Speaker Paul Ryan remain confident that their plan to tax imports and exempt exports (and likely strengthen the US dollar) would remain in a tax reform bill. Tomorrow’s 10:00 am Senate Finance Committee hearing with Mnuchin will be must-see TV for tax reform fans.
The CBO and JCT estimate the fiscal fallout of ACA repeal. The Congressional Budget Office and Joint Committee on Taxation find that the number of uninsured people would jump by 18 million in the first new plan year after repeal, while premiums for those with individual polices would increase 20 to 25 percent. After the elimination of Medicaid expansion and tax subsidies for Affordable Care Act insurance, the number of uninsured would increase to 32 million by 2026. Premiums would double by 2026.
People still want to see Trump’s tax returns… among other things. The latest ABC New/Washington Post poll finds that 74 percent of Americans think the President-elect should release his tax returns. Politico and Harvard’s T.H. Chan School of Public Health conducted a survey of voters’ priorities in the first 100 days of a Trump Administration. It reveals that more than half support tax cuts for low-income Americans. As for proposed GOP tax cuts: 30 percent of Trump voters and 42 percent of the general public believe they would “not at all” benefit them personally.
In Kansas, Airbnb joins the tax ranks of hotels. The state becomes the fifteenth in the country to make a statewide tax deal with the home-sharing booking service. Beginning February 1, Airbnb will automatically collect and pay taxes to Kansas. Its hosts will not directly collect and remit the taxes, but will pay Airbnb for the service.
“Nothing Compares 2” a good estate tax plan. The estate of Prince, the late musician who died last year, must make an estate tax payment by Saturday. After deductions and exclusions, taxes may total nearly half of the estate’s estimated $200 million value. While alive, Prince never wrote a will or made an estate plan with trusts to benefit family, friends, or charities. Now, his full estate will be subject to a 40 percent federal estate tax and a 16 percent Minnesota estate tax.
“Sunshine on my shoulder makes me happy,” and for storefronts in one Italian town, tax free. For two years, shopkeepers in Conegliano have been paying a tax on the shadows their awnings cast on sidewalks. Economic stagnation made the town desperate for cash, and shade seemed a good revenue source, apparently. Some businesses are now refusing to pay what amounts to an annual €100 tax.
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