Another poll shows that Americans largely support higher taxes on the wealthy. A new SurveyMonkey poll conducted for The New York Times finds that 62 percent support government policies to reduce the wealth gap. About the same share back a 2 percent tax on wealth above $50 million and about half support a 70 percent marginal tax rate on annual income over $10 million.
The Supreme Court nixes excessive state fines. The US Supreme Court ruled unanimously that cities and states are barred by the Constitution from imposing excessive fines and penalties. The case, Timbs v. Indiana, involved a man whose $42,000 Land Rover was seized when he was arrested for selling a few hundred dollars worth of drugs. The decision comes at a time when many are critical of the IRS for allegedly imposing large civil forfeitures in tax cases.
Lower refunds are a good thing. Really. Senate Finance Committee Chair Chuck Grassley and former Ways & Means Chair Kevin Brady took to USA Today’s op-ed page to try to explain why the lower refunds that appeared during the first two weeks of filing season are a benefit of the Tax Cuts and Jobs Act. They argued that refunds don’t really matter and, besides, Morgan Stanley estimates they’ll be higher this year than last.
The Amazon-New York mega-deal fell through. What can we learn? TPC’s Donnie Charleston and Megan Randall describe how policymakers can better approach corporate incentives. First, they should improve transparency and community engagement. Second, economic development must be inclusive. Finally, communities should pursue homegrown solutions to strengthen their economies—like infrastructure and education. That will ultimately attract major employers without massive incentive deals.
No new local soda taxes in California, but how about a state levy? The California legislature banned cities from passing new taxes on sugary drinks. However, state Democratic lawmakers would ban “Big Gulp” style sodas, add warning labels to beverages, and prohibit displays of sugary drinks in grocery checkout aisles. Their bills also include a 2 cent per ounce state tax on sugary drinks to fund programs that offset the health effects of those beverages. Any tax would need a two-thirds vote of both houses to pass.
‘Tis better to have waited and filed than never to have waited at all. Just last weekend Virginia enacted legislation to conform its tax code to the 2017 changes in the federal law. But the Virginia Department of Taxation couldn’t begin processing tax returns until the legislature acted and now reports a backlog of returns that were filed before the new tax rules were approved. Now, those returns may need to be amended and other taxpayers can expect delays in state tax refunds. Virginia promises to clear the backlog within 17 days.
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