The share of taxable US corporate stock is a lot smaller than we thought. Most analysts have calculated that at least half the value of US corporate shares are in taxable accounts, notes TPC’s Steve Rosenthal. But Lydia Austin and Rosenthal find that it’s actually half that, or about 25 percent. Three-quarters of shares are in tax-exempt accounts like IRAs or defined-contribution retirement plans, or are held by foreigners, nonprofits, or others who pay little or no tax. Rosenthal will testify today on this analysis and its implications for business tax reform at today’s Senate Finance Committee hearing on corporate integration.
Senator Elizabeth Warren wants diverse taxpayers on the IRS ETA advisory committee. “As you prepare to select new [Electronic Tax Administration Advisory Committee] members, I urge you to follow through with your commitment to taxpayer representation…and to select consumer advocates, as well as other members representing the needs of low-income, elderly, disabled, and non-English speaking taxpayers…” wrote the Massachusetts Democrat, in her letter to IRS Commissioner John Koskinen and National Public Liaison Michael Deneroff.
Nevada’s GOP convention denounces Governor Brian Sandoval’s tax hike. Delegates at the state’s GOP convention passed a resolution rebuking the Republican governor for raising taxes by $1.4 billion in 2015. The plan increased the corporation business fee, expanded the payroll tax, raised the cigarette tax, and levied a new gross receipts tax on businesses with at least $4 million in Nevada revenues. It also made permanent some temporary increases to payroll and sales taxes. The state delegates also voted to abolish the IRS and any “state IRS.”
Massachusetts lawmakers plan to vote on a millionaire tax tomorrow. Supporters want to put a constitutional amendment imposing a 4 percent surtax on income above $1 million (in addition to the current 5.1 percent tax rate on individual income) on the ballot. But first it must be OK’d by the legislature. Unfortunately, lawmakers can’t agree on how the tax revenue would be used. The proposal calls for the money to fund education and transportation, but opponents say there’s no guarantee that the legislature won’t spend it elsewhere.
Russia may need to hike taxes—later rather than sooner. The nation faces a budget crunch in the wake of low oil prices, dwindling reserves, and western sanctions. The Wall Street Journal reports (paywall) that government officials are considering a tax increase, but not until after 2018, a presidential election year. On the table: A progressive tax that would tax richer Russians at a higher rate than the current 13 percent flat rate; raising the overall rate to 20 percent; or boosting the 18 percent value-added tax.
Interested in subscribing to the Daily Deduction, the Urban-Brookings Tax Policy Center summary of the day’s tax news? Sign-up here to get the Daily Deduction delivered to your inbox every morning. If you’d like to tell us about a new research paper or have any comments about our feature, write us at dailydeduction “at” taxpolicycenter “dot” org.
