Tune in this morning for TPC’s event on taxing wealth. Elizabeth Warren proposed a wealth tax and Bernie Sanders suggests it could help pay for Medicare for All. How much revenue could a wealth tax raise? What are the challenges to implementing one? Social impact investor Ian Simmons, who backs higher taxes on the wealthy, will be joined by a panel of tax experts to discuss the levy. You can watch the event beginning at 9:00 am here.
Speaking of Warren’s tax plans… The presidential candidate has been under pressure to explain exactly how she proposes to pay for her Medicare for All plan. One might expect higher taxes—fellow candidates and late night television hosts have asked her as much. But she already has designated big tax increases for other purposes. Marc Goldwein of the Committee for a Responsible Federal Budget said “it’s not only a fair, but it’s a really important question.”
Will Apple learn today whether its $14 billion tax bill might stick? The European Union’s General Court will rule on two other similar tax bill challenges from Starbucks and Fiat Chrysler. Bloomberg reports that the decisions could have a far-reaching impact and could “establish some precedent as to how far the court is willing to allow the [European Commission] to extend its approach of judging tax regimes -– and individual tax rulings,” said Howard Liebman, a tax partner at law firm Jones Day in Brussels.
Michigan’s MEGA Credit strikes again. The state legislature approved a package of bills last week that give about $12 million in tax credits to a single automotive supplier in the metro Detroit area. The Michigan Economic Growth Authority (MEGA) tax program is supposed to lure companies from out of state to Michigan. The program guarantees tax credits worth about $6.3 billion through 2032, down from $9.4 billion in February 2015. Those funds look mighty tempting to those that want to fund infrastructure improvements. The Senate Democratic leader has a plan to end the program early, but his bill faces an uphill battle.
With an election less than a month away, Canada’s Prime Minister offers… a personal income tax break? Prime Minister Justin Trudeau has pledged to raise the personal income tax deduction by more than 20 percent over the next four years. That could cost about $3.8 billion when fully phased in. The plan may be an effort to make Canadians forget photos taken of a younger Trudeau in blackface. Or not.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
