Politics cloud a global deal’s forecast. Last summer, a global minimum of 15 percent on large multinational firms seemed within reach. But today, the war in Ukraine, inflation, and other matters make the 2023 deadline for the plan’s implementation around the world seem more challenging. Exacerbating the issue: Congressional Republicans oppose legislation in the US, saying the minimum tax would make domestic companies less competitive in the global economy. TPC’s Gene Steuerle notes, “What makes anything like this difficult these days is that the two parties are so divided,” he said. “That’s what really threatens this legislation more than the idea.”
On the Hill this week. Treasury Deputy Secretary Wally Adeyemo will testify before the Senate Appropriations Subcommittee on Financial Services and General Government on Wednesday at 1:00 pm. The subject: Treasury’s fiscal 2023 budget request for its Office of Terrorism and Financial Intelligence and its Financial Crimes Enforcement Network. At 11:00 am on Thursday, Congressional Budget Office Director Phillip Swagel will deliver the agency’s Budget and Economic Outlook to the House Budget Committee.
Starting in July: IRS will pay 5 percent interest on delayed individual tax refunds. The agency announced quarterly interest rates will increase by one percentage point in July, to 5 percent on individual tax refunds and 4 percent on corporate tax refunds.
The fate of $500 million in tax credits is unclear in Missouri. Now on Gov. Mike Parson’s desk, the legislation taps federal American Rescue Plan Act dollars to fund a $500 tax credit to individuals or a $1,000 for married couples earning less than $150,000 a year. But. Parson may veto the proposal because he objects to its income threshold. “If we're going to do something… cut everybody’s income tax…. Make it fair across the board. We can afford to do that right now, and I think it's a good time to do it.”
After nearly $1 billion in tax increases, New Jersey businesses may see relief. After surging jobless claims during the pandemic depleted the state’s Unemployment Insurance Trust Fund, businesses now face $250 million in added taxes this fiscal year and $600 million or more over the next two years. The Assembly’s Commerce and Economic Development Committee approved a bill to provide business tax and gross income tax credits to small businesses that have not received other grants and subsidies to offset those UI tax increases.
Netflix settles its tax dispute with Italy. The streaming giant agreed to pay $59 million in taxes, penalties, and interest covering 2015 through 2019. An investigation followed the discovery in Italy of technological infrastructure, including 350 servers, that produce revenue for Netflix. This year, Netflix will also establish an Italian legal entity that will determine its tax burden based on subscriptions sold to Italian residents.
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