How much would Clinton and Trump raise the debt? The Committee for a Responsible Federal Budget projects that over the next 10 years Clinton’s tax and spending plans would boost the national debt by $200 billion above current projections while Trump would add an additional $5.3 trillion. Trump’s tax plan would bear most of the responsibility, CRFB said. The group relied on Tax Foundation estimates of Trump’s most recent tax plan.
Clinton would raise the estate tax rate up to 65 percent. She’s proposed hiking the levy to 50 percent for estates over $10 million, 55 percent for those from $50 million to $500 million, and 65 percent for estates larger than $500 million ($1 billion for couples). Earlier in the campaign, she proposed a 45 percent rate.
Germany moves closer to changing its inheritance tax rules. A conciliation committee of the upper and lower houses of parliament agreed that people inheriting family-owned companies will continue to enjoy preferential tax treatment if they hold on to the company and preserve jobs. In some cases, those owing the tax can defer payment, interest free, for seven years instead of the current ten years.
How can regionalism help central cities? Suburbanites pay a relatively small share of the tax burden needed to fund city programs that often benefit them. TPC’s Megan Randall shares how an Urban Institute conference explored new approaches to regionalism and how federal, state, and local governments can work together to deliver prosperity and growth.
Tune in this morning to understand the fiscal and economic consequences of immigration. The Urban Institute and the USC Sol Price School of Public Policy host the event following the release of the National Academy of Sciences, Engineering and Medicine report, The Economic and Fiscal Consequences of Immigration, the first comprehensive examination of this issue since 1997. The event will feature several of the study’s coauthors, as well as TPC’s Kim Rueben. Watch the live webcast here beginning at 9am.
The OECD says nations have moved away from austerity. The Organization for Economic Cooperation and Development says that governments stopped raising taxes (paywall) in 2015 and instead offered targeted tax cuts to support economic growth. In the years immediately following the 2008 financial meltdown, many nation raised taxes to narrow budget deficits.
Olympic booty and other tax breaks. The House passed, 415-1, a new tax break for Olympic medalists. The Olympics bill has one change from earlier versions: Athletes making $1 million or more annually would no longer be eligible for the tax break. The Senate has passed its own version of the Olympic bill, but without the income cap.
Also on the Hill. Michigan Representative Sandy Levin, the top Democrat on the House Ways & Means panel, sent a letter to IRS Commissioner John Koskinen to request an immediate audit of the Donald J. Trump Foundation. Ways & Means also passed an extension of a nuclear power tax credit. Senate Finance Committee top Democrat Ron Wyden introduced a bill for a new tax credit to boost rental housing construction for middle-income earners.
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