JEC Dems release an interactive mapping tool for a TCJA benefit. Democrats on the congressional Joint Economic Committee are using online maps to illustrate how $193,000 might be used over time by middle-income households. That figure is TPC’s estimate of the average tax benefit a household in the top 0.1 percent will enjoy in 2018 under the Tax Cuts and Jobs Act.
And a new survey says some US companies are using their TCJA windfall to reinvest in their workforce. The EU Tax Reform Dollar Deployment Survey of 500 US corporate executives conducted by Ernst & Young’s Transaction Advisory Services and Tax Services finds that of companies valued between $2 billion and $10 billion, 38 percent plan to create jobs and 33 percent say they may raise salaries.
Still awaiting a budget deal. Congressional leaders failed to work out the details of a catch-all budget bill by midnight last night, despite promises to do so. Lawmakers must agree to some fiscal plan to avoid another government shutdown on Friday. One item likely to be dropped from the measure: A provision to allow states to require online sellers to collect tax on internet sales, no matter where the retailers are located.
Ban taxes on soda or junk food in Washington State? A beverage industry-led group is collecting petition signatures for a statewide ballot initiative that would prevent local governments from passing their own taxes on groceries. Should the initiative pass in November, Seattle would still be able to collect its soda tax, but it wouldn’t be able to increase or expand it.
In Massachusetts, the House considers a bill to tax short-term rentals. A bill under consideration in Massachusetts would tax short-term rentals, including those booked through online platforms. Under the proposal, the state would levy a three-tiered tax on short-term rentals ranging from 4 percent to 8 percent, and cities and towns would have the option to levy extra excise taxes. The bill would also create a state registry of short-term rental properties.
Is it getting even easier to dodge taxes? Fivethirtyeight explains why the answer is yes. In a nutshell: “reduced [political] support for the IRS, new incentives for people to become cheaters and widening partisan distrust.”
Is it going to be harder for your favorite team to sign your favorite player? The New York Times explains how adding a single word in the TCJA—“real”—now allows only real estate swaps to qualify for tax-free “asset swaps,” and not, say, trading a truck for another piece of farm machinery. Also out of asset-swapping luck: The World Series Champion Houston Astros. That team and other sports franchises could face capital gains taxes when trading highly paid players.
If you’d like to tell us about a new research paper or have any comments about the Daily Deduction, TPC’s summary of the day’s tax news, write Renu Zaretsky at [email protected]. You can sign up here to receive the Daily Deduction as an email newsletter every weekday morning (Mondays only when Congress is in recess) at 8:00 am.
