Penalties, Subsidies, and Tax Exemption “Gooooooals”
As expected, the House passed more tax extenders. The House voted to make permanent $75.2 billion worth of tax breaks yesterday—small business expensing of up to $500,000 in qualifying equipment per year, and rules regarding basis adjustments to the stock of S corporations making charitable contributions of property. The House did not consider any proposals to pay for the tax cuts. The Senate would restore these and other expired tax breaks for only two years.
On ACA penalty taxes and credits… TPC’s Bob Williams gives the good and the bad news on the penalty tax. Most people who faced the tax purchased health insurance , but of the 7 million who may owe the penalty, 40 percent don’t plan to pay. In Oregon the chaotic rollout of the state’s health exchange prevented many eligible people from enrolling in ACA insurance and benefitting from associated tax credits, but they may be able to get them retroactively.
As for tax subsidies in the Garden State: Since 2000, New Jersey has awarded nearly $4 billion in tax subsidies to 252 businesses, according to a new report from New Jersey Policy Perspective. Only 40 percent of the jobs New Jersey lost in the recession have been recovered (including 48 percent of private-sector jobs).
You could collect sales tax online, says half of New Jersey. Meanwhile, half of New Jersey residents tell a Fairleigh Dickinson University PublicMind poll they’d like online sellers to collect sales tax. Republican Governor Chris Christie agrees: His cash-strapped state could collect an additional $28 million in revenues.
In Maryland, some lawmakers want a VMT. A vehicle miles traveled tax to supplement the state’s gasoline tax is in the state’s master transportation plan. Its goal would be to reduce carbon emissions and offset diminishing gasoline tax revenues.
Speaking of transportation, need some weekend reading? The CBO has a report on “The Highway Trust Fund and the Treatment of Surface Transportation Programs in the Federal Budget.” It describes the fund’s status and what Congress might consider when addressing the fund’s revenue shortage and spending needs.
Or maybe you’re tuning in to the World Cup. FIFA, the Fédération Internationale de Football Association, enjoys a certain level of tax exemption in whatever country hosts the World Cup, ostensibly because the sporting event offers the host country an economic boost. Protesters in Brazil aren’t too happy with that, given the nation’s underfunded public services and its lagging economy. Should sports organizations like FIFA be tax exempt in the US? TPC’s Howard Gleckman considered the question recently and red-carded the idea.
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