Tax season brings higher ACA penalties for the uninsured. H&R Block reports its customers who owe a penalty under the Affordable Care Act for not carrying health insurance in 2015, are paying an average fine of $383. The average in 2014 was $172 for 2014. Among those who purchased health insurance with an ACA subsidy, 6 in 10 need to repay the IRS a share of their assistance, with an average repayment of $579, up from $530 last year.
Clinton and Sanders both would raise taxes on the rich, but in very different ways. Both candidates would boost taxes on high-income households, but Sanders would make it simple while Clinton would make it complex. TPC’s Howard Gleckman looks at both routes, and finds that the Sanders model is better tax policy.
The Taxpayer Advocate Panel adds members. The Internal Revenue Service recommended and the Department of the Treasury approved 32 new members to serve on the nationwide Taxpayer Advocacy Panel. The TAP is a federal advisory committee charged with providing taxpayer suggestions to improve IRS customer service. The new members join 41 returning members for 2016.
Minnesota opens its legislative session with a budget surplus and an embarrassment of choices. The state has a $900 million surplus. On the wish list: Republicans want permanent tax relief, Democrats want investment in public education and infrastructure. Not surprisingly, their combined wish list exceeds the size of the surplus.
The EU agrees on rules for sharing tax details on multinationals. Large companies will have to disclose data on revenues, profits, and taxes to the administrations of all European Union countries where they operate. Twenty-eight member states will then exchange that data. The rules are due to be formally adopted in June.
New from the Urban Institute… A new research report by Tracy Gordon, Richard Auxier and John Iselin examines what revenues states could raise and what expenditures states would make if they followed national averages, taking into account states’ own demographics and economic conditions. Researchers found wide variation in both of those measures, as well as in fiscal gaps at capacity. Federal funds closed these gaps in some, but not all states. That raises questions about how to design effective federal grant programs as well as state and local tax and spending policies.
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