This week’s Rundown features an ongoing stalemate in New Jersey, talk of new tax cuts in Arkansas, "tampon taxes," and the taxation of fantasy sports. Be sure to check out the What We’re Reading section for new research on public attitudes toward tax and budget issues. Thanks for reading the Rundown!
-- Meg Wiehe, ITEP State Policy Director, @megwiehe
- The gas tax stalemate continues in New Jersey after Gov. Chris Christie voiced his disapproval on Monday of a tax package supported by the leaders of the state's Senate and Assembly. While Gov. Christie's opposition is focused mainly on the gas tax increase contained in the package, New Jersey Policy Perspective (NJPP) has voiced its disapproval of a different component: the "financially reckless" proposal to repeal the state's estate tax. As the debate over transportation funding drags on, some observers are now speculating that by canceling construction projects, the state may be opening itself up to breach-of-contract lawsuits.
- Gov. Asa Hutchison hopes to lead Arkansas in another round of income tax cuts. This week the governor suggested that cutting the state's top tax rate to 5 percent would make the state "competitive," despite considerable evidence to the contrary. In reality, the most likely practical effect of such a change would be to increase the regressivity of the Arkansas tax code.
- New York Gov. Andrew Cuomo signed a bill into law last week that will repeal the state's so-called "tampon tax," thereby joining five other states in extending sales tax exemptions for feminine hygiene products. Removing these items from the state's sales tax base is estimated to reduce New York tax receipts by $10 million per year. Lawmakers in Florida and Illinois, among other states, have also contemplated similar exemptions in recent months.
- Without a broad-based income tax, Tennessee sometimes finds itself looking for revenue in unusual places. To that end, the state's new fantasy sports privilege tax took effect this month. The tax sets clear rules for the taxation of daily fantasy sports sites like DraftKings and FanDuel. While five other states also took action this year to regulate and/or tax fantasy sports websites, the topic remains a gray area in most states for the time being.
What We're Reading...
- The Oklahoma Policy Institute released a two-part report this week that outlines proposals to improve the state's fiscal policies and expand economic opportunity in the Sooner State.
- The Washington Post reports on a new study revealing public attitudes on how to fund transportation improvements.
- A new poll shows that Utah voters are willing pay more income taxes to better fund public education.
- The OECD calls on the G20 to lead reforms that will create more socially equitable tax systems.
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