A vote, a vote, their kingdom for a vote…. Senate Republicans continue their push to pass the Graham-Cassidy bill before September 30, after which date they’d require Democratic support. The bill, which would repeal the Affordable Care Act’s tax subsidies for insurance buyers, tax penalties for those with no coverage, and the excise tax on medical device makers, faces strong opposition from governors, health insurance associations, and medical provider associations… and notably, late night host Jimmy Kimmel.
After a healthcare vote next week, will tax reform charge ahead? Senate Finance Committee Chairman Orrin Hatch seems to be tapping the brakes. He remains adamant that his Republican colleagues in the chamber will not simply accept President Trump’s tax proposal due next week, described by Hatch as “advisory” in nature. Individual senators can do a great deal to shape legislation, and “tax reform is always the hardest," he said. "It's more complex, more difficult, more chances that you'll have people who differ on matters — a lot more ideas.”
Meanwhile, some Americans have some thoughts. A new NBC News/Wall Street Journal poll finds that 62 percent of Americans say taxes for the wealthy should be increased and 55 percent say taxes on corporations should go up. Tax cuts would be good for small businesses, according to 57 percent of those polled. And 54 percent agree that a major tax cut for corporations would encourage those businesses to expand and add jobs. But economists caution not to expect a large boost to the economy from business tax reform.
Next Wednesday at TPC. On September 27: Income Volatility and Tax Policy. Leading practitioners and policy experts will discuss how households experience income volatility and how current policies affect a family’s ability to predict and plan for tax obligations and windfalls. The conversation will include groundbreaking research from the recently released book The Financial Diaries: How American Families Cope in a World of Uncertainty by Jonathan Morduch and Rachel Schneider.
A Detroit business mogul seeks tax incentives for development in Detroit. Quicken founder Dan Gilbert plans development and redevelopment projects worth about $2.14 billion in the city. The project would take five years to complete, and the developer says they’d create 15,000 construction jobs and 9,000 permanent jobs downtown. The projects could receive $250 million in bond funding available through Michigan’s Transformational Brownfield Program. That program allows Detroit developers to keep up to half of the income tax generated by individuals working or living in a redeveloped site for up to 20 years. It also allows developers to capture half of the state income taxes generated by workers during the construction of a new building.
Louisville, Kentucky, is missing out on some tax revenue. Airbnb homeowners earned $6.2 million last year in the city, but few have registered their short-term rental units with the city. That means the city is only collecting a fraction of what it’s due in tax revenue. Mayor Greg Fischer’s administration is working with Airbnb officials to have the online platform collect local taxes for Louisville hosts. That could result in $500,000 in revenue from Airbnb users alone. Airbnb has also reached a deal with the Kentucky Department of Revenue: The site will collect the state’s 6 percent sales and 1 percent room tax—generating $1 million in annual tax revenue.
Catalonia vies for independence in Spain, and is ready with a bigger tax office. The region will cast a vote on independence from Madrid on October 1, a vote ruled illegal by the Spanish government. But Catalonia has nonetheless spent €18 million expanding its tax office and increased its staff to increased its tax office staff from 400 to 700 people since January. Catalonia would declare independence within 48 hours of a “yes” vote, and wants to be ready to claim, and collect, billions of euros in income tax and corporate revenue. That money currently goes to the Spanish government.
