Kentucky moves ahead with income tax cuts as revenue declines. Despite a projected 1.4 percent decline in general fund revenue for fiscal year 2025, Kentucky lawmakers are advancing plans to lower the state’s individual income tax rate from 4 percent to 3.5 percent. As reported by the Kentucky Lantern, the revenue dip follows booming collections during the pandemic that have since stagnated. Critics argue the cuts favor wealthier residents and may jeopardize funding for essential services, but Republican leaders say the state’s budget planning can handle the reduction without long-term harm.
Tennessee Republicans push to end grocery sales tax. Tennessee Republicans have introduced a bill to permanently eliminate the state’s 4 percent sales tax on groceries; it’s one of the highest in the nation, though the state also does not have an individual income tax. According to the Tennessean, the proposed legislation could save families hundreds annually but cost the state hundreds of millions in revenue. While Republicans have historically approved temporary grocery tax holidays, the current bill has gained new support from House GOP leadership. Fiscal constraints and economic uncertainties may challenge its passage.
Chicago Mayor proposes property tax hike and digital tax increases. Chicago Mayor Brandon Johnson (D) has unveiled a revised spending plan for 2025 that includes a $68.5 million property tax hike and $165.5 million in additional taxes and fees. WTTW News details how the plan addresses a $337.4 million budget shortfall by increasing taxes on digital goods, streaming services, parking, and ride-hailing trips. Johnson’s administration has framed the plan as shifting tax burdens from individuals to corporations, but City Council members are wary of further tax hikes.
UAE adopts OECD’s global minimum tax for multinational corporations. The United Arab Emirates (UAE) will implement a 15 percent minimum top-up tax on large multinational companies starting next month as part of the global tax framework set by the Organization for Economic Cooperation and Development (OECD). Reuters explains that the UAE’s tax targets companies with annual global revenues exceeding €750 million ($791 million). The measure builds on the UAE’s recent corporate tax rollout and aims to increase non-oil revenues and curb tax avoidance by multinational firms.
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