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.
For those concerned with the fate of our corporate tax code, perhaps the most important organization to watch right now is the Financial Accounting Standards Board (FASB). While not well-known to those outside the accounting profession, FASB plays a critical role as the organization that sets the standards for what appears in corporate financial statements. What makes this role so important to the corporate tax debate is that FASB can require corporations to disclose information about the tax rates they pay in the U.S. and abroad--and is currently reevaluating its tax disclosure requirements.
Tax policy has figured prominently in this presidential election cycle, with both major party candidates releasing tax proposals and, on the campaign trail, frequently discussing how their tax policy changes would affect Americans.
Hillary Clinton has released a tax plan that would increase taxes on wealthy Americans and increase federal revenue by more than a trillion dollars over the next decade. Donald Trump proposes a tax cut that will cost an estimated $4.8 trillion over a decade and would largely benefit the wealthy.
During Monday night's debate, both candidates seized on the tax issue. Below are some clarifications of the political spin.
A New York Times investigation of the extensive tax breaks that Republican presidential nominee Donald J. Trump's business enterprises received over the past several decades is helping to bring scrutiny to the practice of local property tax abatements and other local economic incentives. Local officials consistently afforded Trump deals which allowed him to pay very little in taxes on the properties he has built and in some cases totally recoup building costs through tax forgiveness.
This week we are bringing you news of proposed new (or increased) taxes in Missouri, Illinois, Louisiana, California and Oregon and the spread of 'dark store' tax avoidance practices across the states. Thanks for reading the Rundown!
On Thursday, Rep. Mark Pocan (WI-D) introduced the Corporate Transparency and Accountability Act, a bill which would require all publicly-traded multinational companies to disclose their revenues, profits, taxes, and certain other operations information on a country-by-country basis (CbCR) to the Securities and Exchange Commission (SEC). The measures in the bill are similar to the rules adopted by the Internal Revenue Service (IRS) earlier this year with the key difference being that this information would be available to the general public.
This week we are bringing you news about taxpayer disapproval of stadium subsidies in Nevada, more pressure to reverse tax cuts in Kansas, a move in Missouri to narrow its sales tax base, and other state tax policy developments from across the country.
Mississippi's Proposed "Consumption Tax" Would Dramatically Lower Taxes for the Wealthy, Increase Taxes for the Poor
Mississippi's proposal to move to a user-based tax system is a euphemism for increasing regressive sales and consumption taxes that will ultimately result in higher taxes for the poorest Mississippians and lower taxes on the wealthy.
Currently, Mississippi legislators are reviewing the state's tax code with a goal, according to Lt. Gov. Reeves, to "move toward a user-based system rather than an income-based system."
It's been about three weeks since the Rio Summer Olympics ended, but the finals for the political gymnastics around the mother of all sports competitions are just now beginning. The clear favorite in the competition is a bill proposed by Senators John Thune (R-SD) and Chuck Schumer's (D-NY), the United States Appreciation for Olympics and Paralympians Act, which would designate the income athletes receive from their medals' cash prizes tax-exempt. The bill made a strong showing in the qualifiers of the competition, passing by unanimous consent in the Senate on July 12, 2016.
Poverty, income-inequality, and stagnant wages have been a major part of the political discourse this election cycle. And for good reason. Although new Census data reveal a substantial drop in poverty and a significant increase in income, median household income is still less than it was in real dollars 17 years ago, and 43 million (or nearly one in seven) people in this country live in poverty.