When will we see tax legislation? White House legislative director Marc Short predicts there will be a tax a bill on the House floor in October and Senate floor in November. Short told a conference sponsored by Americans for Prosperity and Freedom Partners, groups backed by the Koch brothers, that the White House will organize a grass roots campaign and that President Trump will take a more active role than he did non health. Meanwhile, Grover Norquist predicts tax legislation that includes lower rates for all businesses will be released by September 28.
There’s a new bipartisan bill to improve the ACA. The Problem Solvers Caucus, comprised of 40 House Republicans and Democrats, released a plan that would require the Administration to continue providing cost-sharing subsidies to insurance companies and give states more funds to help Affordable Care Act enrollees afford health plans. The proposal also would repeal both the medical device tax and the penalty tax on small businesses that do not offer their employees insurance. It would retain other Affordable Care Act taxes. Will the proposal get through partisan gridlock?
Who benefits from the zero-percent tax bracket on long-term gains and qualified dividends? TPC’s Daniel Berger and Devin Gould explain that taxpayers in the 10 percent or 15 percent ordinary income tax brackets often pay no tax on long-term gains and qualified dividends. Understanding who benefits from this provision could help inform the tax reform debate.
Massachusetts retailers have a decision to make. The state senate, instead of approving a sales tax holiday before departing for its summer recess, has appointed a retail sector task force. The panel must report by January 1 on the challenges local retailers face. One challenge is the state sales tax, which the legislature increased from 5 percent to 6.25 percent in 2009. Those same retailers have until tomorrow to decide whether to submit a November ballot question on reducing the sales tax.
Saudi Arabia considers a new tax system for its oil company. The Saudi government may devise a flexible tax system for state-owned Aramco, which it is about to partially privatize. It may, per Aramco’s recommendation, replace the current fixed royalty (tax) system—set at 20 percent—for one that would increase royalties when crude prices rise. Aramco also pays income tax on its profits. The Saudi government has recently cut that rate from 85 percent to 50 percent.
