Powell: Larger interest rate hikes on the table. Fed Chair Jay Powell said yesterday the central bank could raise rates by greater incremental steps than the quarter-point increases the Fed kicked off last week. “We will take the necessary steps to ensure a return to price stability,” Powell told a business conference. His goal: a “soft or soft-ish landing.”
Legislative impasse means Minnesota businesses will pay higher unemployment insurance taxes. State lawmakers failed to reach a deal last week to avoid an automatic increase in unemployment insurance taxes. Minnesota will use the added revenues to repay federal aid for jobless benefits and replenish its unemployment insurance trust fund.
New York State lawmakers ponder more property tax relief for seniors. Republicans are proposing to double the benefit of property tax relief for those age 65 and over from an average of $790 to $1,580. Their measure also would eliminate school property taxes for homeowners who at least age 80. The cost would be offset by federal pandemic relief.
Will Ohio lower its gasoline tax? Ohio Senate Republicans have a bill to reduce both the 38.5-cent-per-gallon gasoline tax and the 47 cent diesel tax to 28 cents for the next five years.
Seattle voters will decide whether to pay higher mass transit taxes. The Washington State legislature passed a measure that allows Sound Transit to make improvements in specific cities, beyond the agency’s planned expansion and timeline. Residents in newly created “Enhanced Service Zones” will be able to approve tax increases to support improved services or faster construction timelines. Why does this matter? The new law allows cities with pro-transit voters to generate the additional cash necessary to build more projects at the same time.
Coming in May: 7th International Conference on Taxpayer Rights. The Center for Taxpayer Rights will convene the online event hosted by the Harvard Law School from May 16 through May 20. Events include a free workshop on the role of tax clinics and taxpayer advocates in protecting taxpayer rights. Contact the Center for Taxpayer Rights at [email protected] with questions, view the conference agenda here, and register here.
India has new tax laws for crypto. The new laws go into effect on April 1, and require crypto currency traders to treat profit or loss on each digital asset independently. In addition, the government will levy a one percent tax on each transaction. One crypto entrepreneur in India suggested traders sell everything they have before March 31 and start over on April 1.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
