China retaliates by raising tariffs on $60 billion in US goods effective June 1. The Foreign Ministry spokesperson said “China will never succumb to foreign pressure,” namely President Trump’s latest 25 percent tariffs on $200 billion in Chinese goods. After National Economic Council Director Larry Kudlow acknowledged that both China and the US will “pay” in a trade war, Trump tweeted yesterday that “there’s no reason” for American consumers to pay tariffs. All they have to do is buy “from a non-Tariffed Country, or you buy the product inside the USA.”
Rethinking retirement policy. The Senate Finance Committee holds a hearing this morning on the challenges in the retirement system, and the House Budget Committee holds a hearing tomorrow on retirement security in the twenty-first century; the Urban Institute’s Melissa Favreault will testify.
Elsewhere on the Hill. Tomorrow, Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig will testify on the Treasury’s 2020 budget request before the Senate Appropriations Subcommittee on Financial Services and General Government. The Ways & Means Committee has set a Wednesday hearing on the economic and health consequences of climate change. The Senate Budget Committee holds a hearing today on fixing a broken budget and spending process.
In Nevada: Businesses receive millions in tax incentives, with many employees receiving Medicaid. The Nevada Independent reports that in 2018 more than 60 businesses that received state tax incentives over the past four fiscal years employed 13,000 workers who were enrolled in Medicaid—at a cost to taxpayers of $34.5 million. “We’re giving a company a privilege of a tax abatement but yet we’re picking up the cost of health care for their employees,” Democratic Assemblywoman Maggie Carlton said. “That’s just not a good deal for the state.”
Coming up in June: A conference on the effects of corporate and business provisions of the Tax Cuts and Jobs Act. TPC and the University of North Carolina Tax Center host a program what the 2017 law means for business. Among the topics: How did TCJA affect compensation, corporate payouts, US-based multinationals, overseas firms, and pass-through businesses. Register here for the event. It will also be webcast live here.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
