The federal tax law continues to lose popularity. Vox considers the latest polling on the Tax Cuts and Jobs Act. Six months in, the 2017 tax cuts are not gaining traction among potential voters, as GOP leaders hoped. Why? Chalk it up to (1) uncertainty about the law’s effects, and (2) effects on paychecks that are as yet too small to notice.
Political opportunity zones. The TCJA included new Opportunity Zones intended to boost economic development in low-income communities. Governors recommended eligible zones based on Treasury guidelines. But The Washington Post reports that, at the request of Governor Brian Sandoval (R) and Sen. Dean Heller (R) who is in a tough race for reelection, Treasury revised the rules so Nevada could shift the tax subsidies to a county that was ineligible under the initial guidelines. The Post reports that switch was made to benefit Lance Gilman, a brothel owner, real estate developer, and big contributor to Heller’s campaign.
Louisiana’s Senate renews a sales tax hike. The chamber approved a bill that keeps the state sales tax rate at 4.45 percent by extending a .45 percentage point increase that was set to expire. The measure would take effect on July 1 and last until 2025. All told, over $1 billion in temporary tax measures are due to expire at the end of the week. Louisiana’s special session to consider revenue measures ends on Wednesday.
Boise, Idaho proposes tax increases. The booming city wants to hire seven police officers, build a library, and fund a sports park. The City Council will consider a budget proposal that includes an 8 percent, or $18.3 million, spending increase. Two-thirds of city revenue comes from property taxes that the budget would boost by 3 percent, the maximum allowed by state law. The average homeowner’s bill would climb by $152 per year.
Alaska officials want Fairbanks utilities to share TCJA savings with customers—right away. Two utilities in the city saved an estimated $1 million thanks to the federal tax law. The Regulatory Commission of Alaska says investor-owned utilities in Anchorage lowered their rates after the passage of the tax law, and it wants Fairbanks utilities to do the same. They’d rather use the money to delay a future rate hike.
What does the South Dakota v. Wayfair Inc. decision mean for consumers, retailers, and state governments? TPC hosts a conference tomorrow at 9:00 am (live webcast here) to examine last week’s landmark Supreme Court ruling that overturns Quill Corp. v. North Dakota and allows states to require remote sellers to collect sales tax. Senator Heidi Heitkamp (D-ND), who was the state’s tax commissioner when Quill came before the Supreme Court 26 years ago, will be the keynote speaker.
Thursday on the Hill: SFC will consider Rettig nomination as IRS Commissioner. The Senate Finance Committee holds a hearing Thursday, June 28, to consider the nomination of California attorney Charles Rettig to serve as IRS Commissioner for a term expiring November 12, 2022.
If you’d like to tell us about a new research paper or have any comments about the Daily Deduction, TPC’s summary of the day’s tax news, write Renu Zaretsky at [email protected]. You can sign up here to receive the Daily Deduction as an email newsletter every weekday morning (Mondays only when Congress is in recess) at 8:00 am.
