Democratic presidential nominee Kamala Harris confirms support of Biden’s tax proposals. The New York Times reports on Harris supporting tax increases laid out in Biden’s budget plans, which would raise $5 trillion in new revenue over a decade. These include raising the 21 percent corporate tax rate to 28 percent and the individual top tax rate from 37 percent to 39.6 percent. She’d also impose a wealth tax on taxpayers with a net worth of at least $100 million.
How would exempting tips from tax affect states? TPC’s Nikki Harris and Lillian Hunter answer the question, now that both Democratic presidential nominee Kamala Harris and Republican presidential nominee Donald Trump have pledged to exempt tip income from taxes if elected. Tipped workers make up different shares of each state’s labor force, and each state has different rules for paying tipped workers. In 41 states with income taxes, legislatures would need to decide whether to follow federal rules if Congress enacted such a proposal.
In New York State, the demand for legal cannabis is up. In the first half of the state’s fiscal year, the Office of Cannabis Management reports cannabis sales of over $260 million. New York levies a 13 percent sales taxon all cannabis products. Since New York legalized adult cannabis use in 2021, the state has distributed $5.9 million in cannabis tax revenues to local governments in upstate New York, $3.2 million to Long Island, and $4.5 million to New York City.
Oklahoma’s set to eliminate the sales tax on groceries. On Aug. 29, Oklahoman grocery shoppers will see fewer taxes included on their receipts, thanks to the elimination of the state’s 4.5 percent sales tax on groceries. Local taxes will remain in place, and the state will not eliminate all state sales taxes in grocery stores. Taxes will still apply to sales of prepared foods, dog food, hot deli soups, toiletries, over-the-counter medications, beer, self-serve fountain drinks, and sushi. The Oklahoma Policy Institute estimates a family earning $40,000 a year will save about $125.
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