The “Cadillac tax” has a loyal pit crew. A bipartisan group of 101 economists and health experts have co-signed a letter urging Congress to retain the tax on high-cost health insurance plans. A bipartisan group of lawmakers is moving to kill the Affordable Care Act levy, which is scheduled to take effect in 2018. Backers argue that the tax will slow the rise of healthcare costs by encouraging employers to limit insurance benefits. They want Congress “to take no action to weaken, delay, or reduce the Cadillac tax until and unless it enacts an alternative tax change that would more effectively curtail cost growth.”
More on GOP candidate Donald Trump’s tax plan… Despite Trump’s promise to bar the use of carried interest, TPC’s Howard Gleckman says the overall plan would be a sweet deal for investment managers, or anybody who turns himself into an independent contractor. Meanwhile, Trump plans to keep the Earned Income Tax Credit and the Child Tax Credit. TPC’s Elaine Maag notes that “most people could earn more money without owing taxes…since they would still get their refundable EITC and CTC.”
And about that Trump tax plan’s price tag… As for how Trump would pay for his tax plan? Cost cutting: He guesses that the US loses “tens of billions of dollars” because of incompetence, theft, and wasteful spending, and promises “tremendous cuts” to the federal budget. He promises to specify those cuts in “phase two” of his tax plan’s rollout.
Oregon’s recreational pot users can buy marijuana tax free through the end of this year. They were able to start buying yesterday, but the state won’t tax any sales at 25 percent until January. Lawmakers will spend the next several months developing a framework for taxation and licensing.
In Greece, six islands lose their sales tax break. The sales tax increased by 30 percent for some Aegean Islands yesterday, after decades of a lower Value Added Tax rate. It had been lower than the rest of the country to offset higher transportation costs and keep permanent residents from moving. The Greek economic crisis and European Union bailout forced the increase. Much of the cost will likely be passed on to tourists.
Interested in subscribing to the Daily Deduction, the Urban-Brookings Tax Policy Center summary of the day’s tax news? Sign-up here to get the Daily Deduction delivered to your inbox every morning. If you’d like to tell us about a new research paper or have any comments about our feature, write us at dailydeduction “at” taxpolicycenter “dot” org.
Donald Trump says he’d eliminate the tax break on carried interest. What he doesn’t say is he’d give the investment managers who now benefit from that scheme an even bigger tax cut than they get today. And, it turns out, Trump’s new tax regime would not only benefit hedge fund managers, but also millions of […]
On the Hill… The Senate and House passed funding bills to keep the government open through December 11, with just the usual minutes to spare. Now that that’s taken care of, the Senate Finance Committee holds a hearing today on improper payments in federal programs. Comptroller General of the United States Gene Dodaro will testify. […]
By Renu Zaretsky :: September 30th, 2015
About that possible government shutdown… The Senate passed a continuing resolution to fund the government through December 11. Senate Majority Leader Mitch McConnell and outgoing Speaker of the House John Boehner will meet with President Obama “soon” for budget negotiations, and the House is on track to approve a short-term spending bill, too. Now Congress […]
By Renu Zaretsky :: September 29th, 2015
Donald Trump unveiled his tax plan—is it going to “cost him a fortune?” He has a tax cut for nearly everybody, but the highest income households would likely be the biggest beneficiaries. And his plan would likely add trillions to the national debt over the next decade, concludes TPC’s Howard Gleckman. But while Trump details […]
Donald Trump, who likes superlatives, has weighed in with his version of a standard cut-the-rates, broaden-the-base tax reform. And like many other GOP tax rewrite proposals, this one appears to be an enormous tax cut skewed largely in favor of high-income households. While Trump claims the plan would pay for itself after three years, he […]
By Renu Zaretsky :: September 28th, 2015
Speaker of the House John Boehner resigns. His resignation—in the wake of a conservative effort to overthrow him—increases the chances that Congress will fund the government at current levels through December 11 and avoid a shutdown this week. The Senate plans to approve a 10-week continuing resolution today. The biq question is what happens next: […]
State policymakers are increasingly using “triggers” to pass big tax cuts while ducking tough decisions on how to pay for them. They are bad tax policy. Naturally, they are incredibly popular. Here’s how a tax trigger works: A state cuts taxes over a period of years. There may be an initial tax cut that takes […]
By Renu Zaretsky :: September 25th, 2015
Next week on the Hill… Maybe a shutdown, maybe not, and also a couple of Senate Finance Committee hearings. On Tuesday, the panel will hold a hearing on Puerto Rico’s debt crisis. On Thursday, it will consider improper payments made through federal programs including Medicare, Medicaid, and the Earned Income Tax Credit. On the campaign […]
By Renu Zaretsky :: September 24th, 2015
On the Hill today… The Senate plans to vote on a continuing resolution to fund the government from October 1 through December 11. The continuing resolution includes a provision to defund Planned Parenthood, a move that could actually cost $130 million over 10 years because the government would have to pay for more unplanned births, according […]