President Trump wants a “big” Coronavirus payroll tax cut, but many in Congress are skeptical. House Democrats were cool to the payroll tax cut suggested by the White House, but Treasury Secretary Steven Mnuchin continues to pitch the idea in to House Speaker Nancy Pelosi. President Trump reportedly wants a payroll tax holiday through the November election. Many Democrats favor paid family leave and help with health insurance. Hill Republicans have opposed payroll tax cuts in the past. Democrats may try to move a bill through the House by the end of this week.
Shale company relief? Worth a shot? Concurrently, in the wake of an oil price war between Saudi Arabia and Russia (and a call from Harold Hamm, donor and shale producer, to the White House) the White House is now considering federal assistance to domestic oil and gas producers, such as low-interest government loans.
Is the property tax unfair? TPC’s Tracy Gordon considers the evidence. “Although a good tax, the property tax has some troublesome features. These flaws are hardly deal breakers but they do knock the property tax off its pedestal. Politicians, commissions, property owners, and advocates should keep them in mind when embarking on reforms.” Question is: If states abolish the levy, as some lawmakers suggest, how will they replace the revenue?
Virginia to exempt some gun safes from state tax. Democratic Governor Ralph Northman signed a bill that exempts from tax gun safes that cost $1,500 or less. . The exemption will apply to gun safes or vaults that are commercially available, and secured with a digital, dial or biometric lock. Meanwhile, the legislature passed a gas tax hike of 5 cents per gallon for each of the next two years.
Utah tax writing committee approves $15 million in tax credits for additional Social Security recipients. The committee advanced a measure that would raise the income threshold for joint filers claiming the credit from $30,000 to $45,000. That would extend the benefit to about 58,000 retirees.
Wash your hands, keep your distance, and read Taxes in America. TPC’s Howard Gleckman reviews the new version of Taxes in America, by TPC’s Len Burman and University of Michigan economist Joel Slemrod: It’s “a clear, concise, and sometimes even amusing explanation of the US tax code. Which, of course, is not clear, concise, or amusing. If you want to know the difference between the flat tax, the fat tax, and the fart tax, this book is for you. If you want a careful but painless explanation of the US tax code—perhaps before agonizing over your own 2020 income tax return—pick up a copy. It is way more fun than the instructions for Form 1040.”
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