In the Tax Justice Digest we recap the latest reports, blog posts, and analyses from Citizens for Tax Justice and the Institute on Taxation and Economic Policy. Here's a rundown of what we've been working on lately.
Tax Justice Digest: Trickle-down revived, corps aren't paying state taxes, young immigrants and taxes, etc.
This week, transportation funding debates finally concluded with gas tax updates in Indiana, Montana, and Tennessee, and appear to be nearing an end in South Carolina. Meanwhile, Louisiana and Oregon lawmakers debated new Gross Receipts Taxes, and Texas legislators considered eliminating the state's franchise tax.
California's counties stand to lose hundreds of millions of dollars in tax revenues if undocumented residents are deported-- collectively over $1.53 billion according to an analysis from the Institute on Taxation and Economic Policy. Public debates in California over immigrants, specifically around undocumented immigrants, often suffer from insufficient and inaccurate information about the contributions of undocumented immigrants, particularly tax contributions at the local and state level. The truth is that undocumented immigrants living in the California pay millions of dollars each year in local taxes to the counties where they live (more than $1.5 billion) and collectively $3 billion combined in state and local taxes in the state of California. In fact, a little more than half of the total state and local taxes undocumented immigrants in California pay flow to local governments.
States are experiencing a rapid decline in state corporate income tax revenue, and the downward trend has become increasingly pronounced in recent years. Despite rebounding bottom lines for many corporations, a new ITEP report, 3 Percent and Dropping: State Corporate...
The most complimentary thing that can be said about the corporate tax changes outlined by President Donald Trump earlier this week is that they weren't scribbled on a napkin. Unlike supply-side architect Arthur Laffer, who infamously sketched out his explanation for why tax cuts can somehow pay for themselves in this manner, the Trump administration took the trouble to fill an entire page (generously double-spaced) with information about how the President proposes to cut taxes as part of his as-yet-unwritten detailed tax plan later this year.
President Donald Trump has promised to release new details Wednesday on what he says could be "the biggest tax cut we've ever had." While much is unclear about the shape this plan will take, the Wall Street Journal reported yesterday that it will include a 15 percent tax rate on corporate profits, less than half the 35 percent statutory rate currently in effect.
Earlier this month the Alaska House of Representatives voted 22-17 in favor of implementing a personal income tax for the first time in over 35 years. Gov. Bill Walker praised the bill shortly after passage, citing its ability to "provide a steady source of funding for essential services like public education and state troopers," and the need to "stop the draw on our precious savings" that the state accumulated during times of high oil prices.
A few weeks ago, a young undocumented immigrant posted a photo on Facebook after filing her taxes that went viral. The young woman, Belen Sisa, is one of 1.3 million young people who are currently eligible for temporary work authorizations...
A new executive order signed by President Donald Trump on Friday asks that Treasury Secretary Steven Mnuchin review significant tax regulations issued in 2016. The broader context of the order is that President Trump is seeking to roll back regulations across the government - many of which he claims are overly burdensome - and could potentially target critical Treasury regulations such as two recent rules curbing corporate inversions. Any attempt to reopen tax loopholes closed by recent regulations would be counterproductive to the goal of creating a fair tax system and should be rejected.
The Louisiana Legislature has been in session for two weeks now. The stage has been set for fiscal reform and the stakes are high. The state faces a $1.3 billion loss of revenue starting July 1, 2018 when the temporary sales tax base expansion and rate increase expires if lawmakers fail to close the gap this legislative session. (State law prohibits the adjustment of taxes during the 2018 regular session.)
After years of repeated budget cuts, the appetite to cut an additional $1.3 billion doesn't appear to be there. Reform-minded revenue raising is understood broadly to be a necessary part of reaching a solution.
But getting there will prove to be difficult.