Former Fed Chair Yellen: Trump’s tax cuts won’t turbocharge growth. During an event in Paris yesterday she predicted the 2017 tax cuts would boost investment spending and productivity modestly. But, she said, “the payoff is likely to be in tenths of a percent, which in growth is a lot but may not be what some people are hoping for.”
Trickle down economics? The biannual CNBC survey of 750 Americans with $1 million or more in investable assets finds that most will bank the extra income they are getting from the Tax Cuts and Jobs Act. More than 75 percent say they will either invest or save it. Those with a net worth of $5 million-plus are even more likely to save. Only 4 percent of millionaires say they’ll spend their extra cash.
Brady is losing patience with Trump’s tariffs. The chairman of the House Ways & Means Committee told reporters yesterday, “As more and more tariffs are landing on our local businesses, especially our manufacturers…, and the retaliation is harming more of our consumers and job creators, I think the concern about this issue is increasing." Earlier this week, Senate Finance Committee Chair Orrin Hatch had even harsher words for the president’s trade policy.
Trump tariff would take a toll on Toyotas. The automaker reports that the cost of producing a Camry will climb by $1,800 if the US imposes a 25 percent tariff on imported cars and parts. The Camry, which Toyota makes in Kentucky, is the nation’s best-selling sedan.
Following the Supreme Court’s online sales tax decision: Overstock.com. The online retailer has started to collect sales tax on purchases in more than 12,000 US tax jurisdictions. The move comes in the wake of the South Dakota v. Wayfair decision last week.
Rettig’s priorities. At his confirmation hearing, IRS Commissioner nominee Charles Rettig told the Senate Finance Committee that his top priorities will be writing TCJA guidance, improving customer service and upgrading the agency’s technology: "I think that American taxpayers should get their calls answered… (and) deserve the most up-to-date IT system on the planet." He also said the IRS would enforce the Johnson Amendment curbs on political activity by clergy and houses of worship. Vice President Mike Pence had said the Administration would ignore the law.
North Carolina’s House OKs a referendum on the state’s income tax rates. This fall, voters would eschoose whether to cap state corporate and individual income tax rates at 7 percent. The state Senate voted last year to get voter approval for a 5.5 percent cap. The state’s constitution currently caps rates at 10 percent.
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