Biden Administration asks Canadian government not to tax digital services. Politico reports on the congressional hearing on global tax reform. “Treasury’s Deputy Assistant Secretary for International Tax Affairs, Michael Plowgian, told lawmakers that Treasury is engaged with Canada at all levels, including Secretary [Janet] Yellen, to dissuade them from implementing a discriminatory DST [digital services tax].”
What can we learn from three years of state tax cuts? TPC’s Richard Auxier reviews states’ efforts since the pandemic recovery. Most states have passed multiple tax cuts, with the types of cuts depending on which political party controlled the state legislature. Though revenue collections are beginning to slow, some states are ready for another round of cuts. “At this point, there is ample evidence for the pros and cons of various approaches. However, if and when the discussion turns back to tax increases, some states might have work to do,” Richard concludes.
Speaking of state tax cuts, Idaho’s budget surplus will fund property tax relief. Republican Gov. Brad Little announced this week that the state ended its fiscal year with a $100 million budget surplus. Legislation passed in March reduced property taxes by $200 million and earmarked any surplus funds for additional property tax relief. The $300 million in property tax relief this year is estimated to provide a 10 percent to 13 percent reduction in individuals’ property tax bills.
Report: Wisconsin taxpayers will receive over $1 billion in state and local tax relief over two years. The nonpartisan Wisconsin Policy Forum, in its latest report, finds the state budget signed by Democratic Gov. Tony Evers earlier this month used the near $7 billion state surplus for the biggest increase in public services funding in three decades, even with a relatively substantial package of tax cuts.
Can New York State afford its tax incentives? In a new brief, the Citizens Budget Commission reports that New York's State and local economic development spending continues to increase without sufficient evidence that the programs create jobs efficiently. The state’s economic development spending could reach $13 billion annually by 2025 based on spending increases and expanded incentives. New York faces a $9.1 billion budget gap next year and a $13.4 billion gap in fiscal year 2027.
Tune in next Wednesday for TPC’s Prescription on cryptocurrency technology. TaxBit’s director of government relations and regulatory strategy, John Schoenecker, will join TPC’s John Buhl to discuss the latest efforts by Congress and Treasury to incorporate cryptocurrency technology into the tax code. Learn more and register for the noontime event on July 26 here.
“Whenever, Wherever:” In Spain, a second tax fraud investigation into pop singer Shakira. A judge in Barcelona has opened a second investigation into alleged tax fraud in 2018 by the Grammy-award-winning artist. Shakira is already awaiting trial for alleged tax evasion of $16.2 million in 2012, 2013, and 2014.
Kenya’s ongoing tax protests have now left at least 31 dead. The anti-government demonstrations against rising food prices and steep tax increases have destabilized one of the African continent’s strongest democracies. The protests began after the enactment of a finance bill that levies a 1.5 percent tax on salaried workers for a housing and jobs fund, as well as a doubling of the fuel tax to 16 percent.
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].
