Why Hungary is blocking a global minimum corporate tax deal. The nation asked the European Union to remove from today’s agenda the proposed 15 percent global minimum corporate tax. The reason says Hungary’s Foreign Minister Peter Szijjarto, “Europe is in deep enough trouble without the global minimum tax. We’re not supporting a hike in taxes for Hungarian companies and we’re not willing to put jobs in danger.” Stay tuned.
Pennsylvania Senate approves a corporate income tax rate cut. The Republican-controlled Senate approved two different plans this week. Each would reduce the rate from 9.9 percent to 6.99 percent but one would cut the rate to 5.99 percent if future revenue goals are achieved. Democratic Gov. Tom Wolf supports a cut in the corporate rate—one of the nation’s highest but has not yet endorsed either bill. The price tag: Between $1 billion and $1.7 billion annually.
New Jersey Gov. Phil Murphy promises more property tax relief. The Democratic governor says he’ll boost to $2 billion a state property tax relief program for both owners and renters. The legislature is on board and will likely OK the tax break later this month. Over 2 million households would benefit. The tax cut is possible because state tax revenues came in $7 billion higher than expected.
Some households in New Mexico are still waiting for gas tax rebates. About 800,000 residents received payments from the state’s first round of gas tax rebates, but many continue to wait. The Taxation and Revenue Department can only distribute 14,000 rebates per day, made in the order state tax returns were filed. For the second round of payments in August, the department will outsource the distribution to a commercial bank, increasing daily payments to 50,000.
Next week with TPC: Machine Learning and Tax Enforcement. On Wednesday, June 22, TPC will host a virtual event on how machine learning can help the IRS detect noncompliance and improve its targeting of enforcement actions, including audits. TPC’s Janet Holtzblatt will moderate a discussion with Alex Engler of the Brookings Institution, John Guyton of the Internal Revenue Service, and Una-May O’Reilly of the Massachusetts Institute of Technology. Learn more and register here.
The Daily Deduction will next publish on Tuesday, June 21, in observance of Juneteenth Day on Monday.
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].
