“I try and I try and I try and I try.” President Trump threatened to veto the $1.3 trillion spending bill that his administration had negotiated hours before, because, as Politico Magazine explains, “the omnibus feels more like a product of Obama-era divided government than Trump-era Republican monopoly.” Trump said he’ll never sign such a bill again, and called on Congress to grant him a line-item veto. They might not be able to answer: The US Supreme Court ruled that a federal line-item veto is unconstitutional.
“When I’m drivin’ in my car… supposed to fire my imagination.” GOP Governor Rick Snyder calls for a hike to the federal gas tax. He acknowledged last week that while his state of Michigan could do more to increase road funding, the federal government “is going backwards on us.” The federal gasoline tax has remained at 18.4 cents per gallon since 1993. Snyder—who will complete his second and final four-year term on December 31—just signed legislation to provide an additional $175 million in road funding this year for a “pothole crisis.” Total funding for Michigan roads has climbed from $3.6 billion in 2011 to $4.5 billion in 2018.
“When I’m ridin’ round the world.” Tax changes are coming to China. The nation’s new finance minister Liu Kun promised fiscal reforms in an address yesterday. The government plans to reduce value-added taxes for manufacturing and transportation, make unspecified other changes in consumption taxes, and advance property tax legislation. It will also begin a new performance review of budget management.
“Can’t you see I’m on a losin’ streak?” Apple has built a new tax team. The tech giant has chosen Goldman Sachs, Amundi SA, and BlackRock to manage its payment of $16 billion in back taxes to Ireland. Ireland’s National Treasury Management Agency will work with the money management firms to finalize their contracts.
“Better come back maybe next week.” And, on April 9, to TPC’s Third Annual Lubick Symposium on tax administration challenges and the TCJA. Participants will consider the complexities that the Tax Cuts and Jobs Act create for tax administration and compliance, as well as what Treasury guidance would best provide certainty to taxpayers. For example: How will the new pass-through provisions affect taxpayer behavior and limit opportunities to minimize tax liability? The Monday morning event will take place from 9:30 am to 12 noon at the Brookings Institution, and will be webcast live. Register here.
Congress will not be in session for the next two weeks. The Daily Deduction will post Mondays until Congress returns.
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.
