OECD reaches deal on global minimum corporate tax. The Organization for Economic Cooperation and Development (OECD) announced Friday that its group of developed nations agreed to a global minimum corporate tax rate of 15 percent. The deal, according to the OECD, will ensure that 100 of the largest multinational companies pay a fair share of tax on over $125 billion in profits wherever those profits are generated. Secretary Yellen expressed hope that Congress will act swiftly to put the deal into practice in the United States.
Blocked: Kentucky law allowing public tax credits for private school tuition. A Kentucky Circuit Court judge has stopped state officials from providing tax credits to those who donate money to support private school tuition. The judge ruled that the state program is contrary to the state constitution’s mandate to establish an efficient system of common schools. Attorneys representing the Institute for Justice plan to appeal, saying that tax credits do not amount to government spending.
Extended and maybe soon expanded: California tax on phone bills. Governor Gavin Newsom signed two laws Friday that extend a tax on phone bills and make it easier for the state to collect more than it could before. The tax on phone bills was set to expire next year. It has funded “universal service programs” designed to make high-speed internet available to people who are deaf, disabled, low-income and live in rural areas. The tax does not apply to text messages, data or voicemail. People with “landlines” have paid more of the tax than people with cellphones, and people with cellphones outnumber landline users. With the new law in place, California regulators are considering a new tax that would be a flat fee applied to all phones in the state, regardless of type.
Tune in Thursday for your TPC Prescription with Joseph Aldy. Aldy is a public policy professor at Harvard University and a former environmental policy adviser to President Obama. He’ll talk with TPC’s Howard Gleckman about proposed fiscal policies aimed at addressing climate change, including those in the budget bill currently moving through Congress. Register here for the Oct. 14, noontime event.
December 1: Proposal deadline for the 2022 IRS/TPC Joint Conference on Tax Administration. The 2022 conference takes place next June 16. IRS and TPC welcome proposals for papers. Topics may include measuring and influencing taxpayer compliance, estimating taxpayer compliance costs, complexity, administration, and understanding taxpayer behavior. Proposals are due on December 1. For more information about IRS research conferences, including previous conference programs and papers, visit the IRS website.
When Congress is not in session, the Daily Deduction posts Mondays only.
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].
