Sen. John Thune will be the new Senate Majority Leader. Senate Republicans chose the South Dakotan yesterday in a secret ballot, voting 29-24 over Sen. John Cornyn of Texas. Sen. Rick Scott of Florida, who had the support of some of President-Elect Donald Trump’s allies, had also vied for the spot, but he never earned more than 13 votes of support. Thune is a member of the Senate Finance Committee, and one of his big tasks next year will be teeing up legislation to prevent the expiration of major portions of the Tax Cuts and Jobs Act (TCJA).
A 10-year extension of the TCJA is unlikely. TaxNotes reports (paywall) on expectations among some tax policy stakeholders. They expect Congress might only advance a three- to five-year extension of the TCJA rather than a full decade. The Congressional Budget Office estimates a ten-year extension would cost $4.6 trillion, a fiscal price viewed as too high for some Republicans. A less-expensive, shorter extension appears more likely. But this could mean that by 2030, Congress once again faces a deadline to prevent taxes from going up for many taxpayers.
Knoxville might impose a hotel tax to fund tourism infrastructure. Knoxville Mayor Indya Kincannon has proposed a hotel and lodging tax increase from 3 percent to 4 percent to help maintain and improve local attractions. The city council will vote on the proposal on Nov. 26. The new rate would apply after 2032, when the current 3 percent tax is set to expire.
Ohio state lawmaker wants to cut state sports betting tax rate in half. Ohio state Senator Niraj Antani proposes cutting the state’s sports gaming tax rate back to its original 10 percent after a 2023 hike raised it to 20 percent. Antani argues the increase puts Ohio at a disadvantage compared to neighboring states with lower taxes, potentially driving bettors elsewhere. The higher rate is projected to generate an additional $100 to $135 million a year for public education.
There’s a very different story in Louisiana. As part of Republican Governor Jeff Landry's tax reform package, Louisiana businesses offering online sports betting would face a steep tax hike—from 15 percent to 51 percent—on net revenue from online wagers. The legislation was the subject of a public hearing yesterday alongside other tax proposals, including a contentious plan to expand the sales tax to cover more consumer services.
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