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.
The Most Egregious Tax Policy Proposals in the 2016 Republican Party Platform
At the risk of sounding like a broken record, tax cuts for the rich do not deliver on trickle-down promises. This fact matters little, apparently, as the RNC policy platform includes ill-advised tax cuts that would exacerbate rising income inequality and add to annual federal budget deficits. Read more.
Donald Trump's Tax Plan: How to Sell a Dream
We keep hearing that conservative economists are working with Donald Trump’s campaign to propose a less costly tax plan—that would still cut taxes for the rich, of course. We’ve yet to see said plan, so Trump’s proposal at the moment still stands. Check out our new explainer video that briefly explores why Trump’s profligate tax cut proposal, which would cost just as much as all discretionary spending, is problematic and unrealistic. Watch the CTJ video here.
Political Conventions Spark Better Tax Policy
The sharing economy service Airbnb is no stranger to controversy, from equal access for all patrons to customers reporting income earned via the service. A new blog by ITEP research director Carl Davis takes a look at how, in preparation for the Republican and Democratic National Conventions, Cleveland and Pennsylvania took swift action to ensure that their lodging taxes applied to Airbnb apartment and room rentals. Read Carl’s blog post.
CTJ to SEC: Beef Up Reporting Requirements
U.S. banks report to the Federal Reserve far more offshore subsidiary companies than what they report to the Securities and Exchange Commission (SEC). Bank of America, for example, reported to the SEC that it has 21 tax haven subsidiaries, but it reported 109 to the Federal Reserve. The bigger number of the two is likely the truth. BofA and other big banks get away with underreporting subsidiary information to the SEC because the agency allows corporations to forego disclosing certain data if corporations deem it too onerous. SEC today closed its comment period on reporting requirements. CTJ submitted comments. If reading technical comments isn’t your thing, read this recent blog post or this recent report that make a strong, compelling case for why SEC should require corporations to be forthright about their offshore subsidiaries and holdings. Read CTJ’s comments here.
Pennsylvania Passes Revenue Plan Necessary to Fund State Budget
ITEP senior analyst Aidan Russell Davis shares both the good and bad news from the recent budget agreement reached by Pennsylvania lawmakers. Read Aidan’s blog post.
In this week's Rundown we highlight state tax news in Alaska, Massachusetts, Mississippi, North Dakota, and Cleveland. Read the Rundown and check out our “What We’re Reading” section here.
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