Tag: taxes

Commentary: Can’t Forget the Motor City

Admin

“In the 1950s,” writes J. Eric Wise in “The French Exit: A Detroit Love Story,” Detroit was “outwardly living well, a very healthy city, technologically advanced, with economic diversity, prosperity, peace, and civil life supporting the arts and sciences.” That is no exaggeration, as this writer can testify. 

As Wise explains, Detroit prospered enormously from World War II and attracted workers from far and wide. My father, a mechanical engineer, was among them. In 1952, he moved our family from Alliance, Ohio, to Detroit, Michigan. The Big Three automakers gave him all the work he could handle.

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Blake Masters Receives Endorsement from Leading Small Business Advocacy Organization

Neil Jones

Trump-endorsed Arizona Senate nominee Blake Masters received another big-ticket endorsement Thursday, this time from the National Federation of Independent Business (NFIB), the national leading small business advocacy group.

“Blake Masters has experience working in the business community and will be a strong supporter of Arizona’s small businesses in the U.S. Senate,” said Chad Heinrich, NFIB Arizona State Director. “His top priority in Congress will be to get the economy back on track and to create a pro-small business environment. He has also expressed an interest in improving workforce training, which will help small businesses immensely as they continue to manage a worker shortage. We are proud to endorse Blake Masters today and look forward to working with him.”

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Tennessee Collects $4.9 Million of Taxes on $206 Million in Online Sports Wagers in August

The Center Square

Tennessee collected $4.9 million in sports gambling taxes in August, up more than $1 million from July, according to numbers released by the state’s Sports Wagering Advisory Committee.

The funds came from nearly $206 million of wagering with sports gambling sites from the state’s 12 online sports books making $24.4 million in adjusted gross income during the month.

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Commentary: Long-Term Study Finds That Higher Corporate and Personal Taxes Lower Real GDP

RealClearWire

by Ross Pomeroy   One of the main planks of President Biden and congressional Democrats’ agenda is making corporations and high-earning Americans “pay their fair share” through higher taxes. But a recently published analysis in the journal SAGE Open delving into sixty years of U.S. economic data from 1960 to 2020 suggests that their proposal, if implemented, could backfire. “In short, as the top corporate rate or top personal rate goes higher, real GDP per capita decreases,” the authors, Ted Peterson, an Adjunct Professor in the Department of Political Science, and Zachary Blair, a recent graduate focusing on advanced financial analysis, reported. Peterson and Blair sought to explore how the top corporate and personal tax rates correlated with real gross domestic product (GDP) per capita, which shows a country’s economic output per person adjusted for inflation. Though imperfect, the measure is considered a proxy for the economic wellbeing of a country’s citizens. In the United States, the corporate tax rate currently stands at 21%, lowered from 35% in 2017 when President Trump and congressional Republicans passed the Tax Cuts and Jobs Act of 2017. The top personal tax rate for 2022 is 37% for individual incomes over $539,900 or $647,850 for married couples filing jointly. President…

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Arizona Republican Lawmakers React to the U.S. Senate Passing the ‘Inflation Reduction Act’

Kaitlin Housler

On Sunday, the US Senate passed the Democrat-backed $740 billion “Inflation Reduction Act” by a 51 to 50 vote, with Vice President Kamala Harris casting the deciding vote. Many Arizona Republican lawmakers are among those claiming the bill will further impact inflation in a negative way while offering no real-time solution to struggling Americans.

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Senators Bill Hagerty and Marsha Blackburn Lambaste Passage of ‘Inflation Reduction Act,’ Warn Higher Prices, Taxes are Coming

Kaitlin Housler

U.S. Senators Marsha Blackburn (R-TN) and Bill Hagerty (R-TN) criticized President Joe Biden and their Democrat colleagues on the passage of the $740 billion “Inflation Reduction Act” Sunday. As expected, no Republicans supported the measure, and so by a 51 to 50 vote, with Vice President Kamala Harris cast the deciding vote.

The Inflation Reduction Act, described by Forbes as “a slimmed-down version of the Build Back Better bill,” allows the government to control the price of prescription medications, contains funding for fighting climate change, would implement larger taxes for wealthy corporations, expand the IRS by some 87,000 agents, and more more.

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Trump: ‘America Is on the Edge of an Abyss’

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Donald Trump on Saturday delivered stinging rebukes of the Biden administration at the Dallas Conservative Political Action Conference, one of a continuing series of indications that the still-popular former president has set his sights on a return to the White House for 2024.

Trump during his speech declared that the U.S. “is being destroyed more from the inside than the out,” and that the country “is on the edge of an abyss, and our movement is the only force on earth that can save it.”

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Commentary: Yes, Taxes Can Drive People to Move

RealClearWire

Many people will tell that people choose to live somewhere based on factors like the weather or proximity to family, and that taxes don’t enter into the equation. While there is a lot of truth to that understanding, when taxes reach a certain point, they can cause people to alter their behavior. Have you heard of voting with your feet? Here’s how that exact concept is playing out for two Iowa families.

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Gov. Walz Offers Minnesotans $1,000 Checks to Spend Half of $9.2 Billion Surplus

The Center Square

Gov. Tim Walz suggested sending half of the state’s $9.2 billion surplus back to taxpayers in a 15-minute special session.

Walz last weekend proposed sending individuals $1,000, and married couples $2,000.

Only Walz can call a special session, but he hasn’t after a GOP and DFL broad deal for $4 billion in tax relief and $4 billion in savings disintegrated in May as the regular session concluded.

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Brian Kemp Denounces Stacey Abrams’ Calls for More Government Mandates

Addison Basurto

Governor Brian Kemp condemned Stacey Abrams on Monday for her support for increased government involvement in the lives of Georgians.

“Stacey Abrams wants longer lockdowns, more government mandates, and higher taxes. Not on my watch! Join the fight for the soul of our state,” the governor said. “When Georgia was the first state to re-open, Stacey Abrams campaigned for longer lockdowns.”

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Arizona Gained 80,033 People, $4.8 Billion in Gross Income in 2020, Per IRS

The Center Square
Arizona Capitol

IRS migration data show Arizona gained 80,033 more people from tax-filing families than it lost – mostly from California – gaining billions of dollars in income in the process. 

The Internal Revenue Service tracks interstate migration using tax filings that had moved from one state to another and how many dependents they brought along. After subtracting the number of outgoing residents, the state gained 80,033 taxpayers and their dependents that filed in 2019 in another state but filed as an Arizona resident in 2020.

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Virginia Budget Deal Includes Middle-Class Tax Cuts, Grocery Tax Cut

The Center Square

After months of debate about Virginia’s biennium budget, lawmakers reached a deal to provide an income tax cut for the middle class, a reduction in the grocery tax and a pay raise for teachers.

The deal earned approval from Republicans and Democrats in a joint conference committee, but still needs to pass the House of Delegates and the Senate and be signed by Gov. Glenn Youngkin. Republicans narrowly control the House and Democrats narrowly control the Senate.

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Lawmakers Slam Northern Arizona University’s Decision to Offer Free Tuition to Half of Arizona Households

Rachel Alexander

While Arizona’s three public universities are demanding tuition increases, at the same time one is also announcing that it will provide free tuition to about half of Arizona households. Northern Arizona University (NAU) said its new financial aid initiative, Access2Excellence, will cover tuition expenses for every Arizona resident who is admitted to the university and has a household income of $65,000 or less. The median family income in Arizona is $65,000.

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Surprise Home Reassessments Create a Tax Burden in Pennsylvania for New Owners

The Center Square

Spot assessments can be used across Pennsylvania to reassess a property’s value, resulting in higher tax bills for homeowners. According to a new report, Allegheny County’s school districts have driven an increase in spot appeals, increasing assessed values by almost $462 million.

The result is that homeowners must pay more in taxes, incentivizing school districts to request a spot assessment.

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Tennessee Legislature Votes to Grow State Government $3 Billion and 16 Percent More than the Growth of Tennesseans’ Incomes

Laura Baigert
Tennessee Capital building

Members of the Tennessee General Assembly overwhelmingly passed a bill Thursday that acknowledges that the growth in state government this year exceeds the growth of Tennessean’s income by $3 billion, or 16 percent.

The action by the legislature is mandated by the Tennessee Constitution in Article II, Section 24 when state spending grows faster than its economy.

The measure, commonly known as the Copeland Cap, was named for its House sponsor of the constitutional amendment, the late Republican State Representative David Copeland of Ooltewah, who passed away in 2019.

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Tennessee Revenues for March $348.8 Million More than Budgeted, Annual Surplus Hits $2.5 Billion

Laura Baigert

Tennessee tax revenues for the month of March exceeded budgeted estimates by $348.8 million, putting the fiscal year surplus at $2.5 billion, reported Department of Finance and Administration Commissioner Butch Eley in a statement Thursday.

March tax revenues totaling $1.6 billion were $286.8 million or 22.78 percent higher than the state received in March 2021.

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Commentary: The Tax Increase That’s Hidden in Plain Sight

RealClearWire

Americans have less money than they had last year — though taxes haven’t been raised. So what’s the problem? Inflation, which has increased at a 40-year high annual pace of 7.9%. It acts as a hidden tax because we don’t see it listed on our tax bills, but we sure see less money on our bank accounts.

In fact, inflation-adjusted average hourly earnings for private employees are down about 2.5% over the last year. This means a person with $31.60 in earnings per hour is buying 2.5% less of a grocery basket purchased just last year. “For a typical family, the inflation tax means a loss in real income of more than $1,900 per year,” stated Joel Griffin, a research fellow at The Heritage Foundation.

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Connecticut Bills Could Bring Changes to Property, Income Tax Calculations

The Center Square
Holly Cheeseman

As inflation soars to 40-year highs, Connecticut lawmakers are considering a package of bills that could bring changes to the manner property and income taxes are calculated in the future.

This legislative session, the General Assembly is considering House Bill 5487, which could increase thresholds for the state’s property tax credit and eliminate some of the eligibility restrictions that are in place.

Also on the Legislature’s radar this session is House Bill 5489, which calls for inflation indexing the personal income tax, and House Bill 5490, which would establish a personal income tax deduction on rent paid, so long as the person’s primary residence is in Connecticut.

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Lawmakers Call for Challenge to ARPA Rules Limiting Connecticut Tax Reduction

Bradley Vasoli
Ned Lamont

Connecticut Republican legislators said on Saturday they want the state to challenge a part of the American Rescue Plan Act which limits states’ ability to cut taxes.

GOP senators and representatives are calling for tax reduction beyond the targeted relief backed by Gov. Ned Lamont (D). A major roadblock to greater decreases will be the COVID-relief bill President Joe Biden signed into law last year. The act included $195.3 billion in recovery funds for states and barred states accepting allocations from using them to “directly or indirectly offset a reduction in net tax revenue… or delay the imposition of any tax or tax increase.”

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Tennessee’s Proposed Public School Funding Formula Will Not Increase Local Taxes, Commissioner Schwinn Insists

The Center Square

Local taxpayers should not be worried about a large local tax increase in four years if a new public school funding formula is enacted, Tennessee Department of Education (DOE) Commissioner Penny Schwinn said.

An introductory overview of the proposed new formula, which would replace the current Basic Education Program (BEP) created in 1992, from the DOE showed “local contributions are set to be lower in FY24, FY25, and FY26 and begin to increase again in FY27, in an amount similar to prior years so that the new state investment does not overwhelm local requirements.”

During discussion in the House K-12 Subcommittee, however, Schwinn pushed back on the notion there would be a four-year cliff where local governments would see a heightened required local expense for public schools.

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With Gas Prices at Historic Highs, Biden Calls for Raising Taxes on Oil Drillers

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President Joe Biden’s budget proposes to scrap more than $45 billion in fossil fuel subsidies, his administration’s latest attack on the beleaguered industry.

The White House budget will remove more than a dozen fossil fuel industry tax credits, increasing the federal government’s revenue by an estimated $45.2 billion between 2023-2032, according to the proposal published Monday. The administration explained that the proposal was written to prevent further fossil fuel investment.

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Michigan House Approves Cutting 27-Cent Gas Tax for Six Months

The Center Square
Andrew Beeler of Michigan

The Michigan House on Wednesday voted 63-39 on a bill aiming to suspend the state’s 27.2-cent per gallon fuel tax for six months.

For the first time since 2008, gas prices broke $4 per gallon nationwide.

If passed by the Senate and signed into law, House Bill 5570 would suspend the state fuel tax on gas, diesel, and alternative fuels starting April 1, 2022, through September 30, 2022.

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Governor Youngkin Renews Calls for a Gas Tax Exemption to Combat Rising Fuel Prices in Virginia

Kaitlin Housler

Virginia Governor Glenn Youngkin announced his plan to combat rising gas prices in his state Monday while delivering a speech to ChamberRVA.

During his speech, the Governor blamed the current energy price hikes as results of bad energy policies at the federal level. Youngkin also admitted that inflation could not be fixed through the actions of one state’s governor alone, however, continued his push to suspend Virginia’s gas tax increase for one year.

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Commentary: The IRS Can’t Get the Basics Right, So Don’t Add to Its Authority

RealClearWire

All taxpayers are dealing with a disastrous filing season this year, with the IRS backed up on processing millions of returns and refunds from last year and communication from the agency nonexistent at best. But some taxpayers will have an added headache in the future as a result of an unnecessary new paperwork requirement that went into effect this year. Fortunately, however, legislation introduced by Sen. Bill Hagerty (R-TN) would address this issue by removing the burdensome new requirement.

Ever since IRS Commissioner Chuck Rettig claimed last year that the “tax gap,” or the gap between what the IRS collects and what it believes it is owed, could be as large as $1 trillion, politicians and legislators have been scrambling to propose ways to collect all that missing revenue. That’s despite the fact that more sober analyses show that the $1 trillion figure is probably wildly exaggerated, that it is functionally impossible to wholly prevent tax evasion, and that a far greater concern is the IRS’s inability to handle its taxpayer service responsibilities.

But as far as proposals to collect all this supposed “extra revenue” go, most of the focus has rightly been on schemes to drastically increase the IRS’s enforcement budget and allow the IRS to snoop on taxpayers’ financial accounts. But another more targeted change has already gone into effect, and is already causing problems.

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Minnesota Senators Pass Unemployment Insurance Trust Fund Bill

The Center Square
Eric Pratt of Minnesota

A bill to repay Minnesota’s federal Unemployment Insurance Trust Fund passed the Senate Monday and it will now travel to the House for consideration.

The bill, SF 2677, appropriates $2.3 billion from the state fiscal recovery federal fund and $408.5 million from the fiscal year 2022 general fund to the commissioner of employment and economic development. 

The commissioner would repay the federal government outstanding loans and accrued interest within 10 days of the bill’s enactment. For the 2022 and 2023 calendar years, the base tax rate would be one-tenth of one percent.

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IRS Reverses Plans for Facial Recognition Software on Its Website

Admin
man in purple sweater sitting in front of a computer

On Monday, the Internal Revenue Service (IRS) announced in a statement that it would no longer be moving forward with previous plans to implement a controversial facial recognition software on its website in order for users to access certain tax records.

According to CNN, the IRS’s reversal came after widespread backlash by elected officials, privacy groups, and others who pointed out that such technology would constitute a massive overreach and violation of individual privacy. The IRS said in its statement that it would “transition away from using a third-party verification service involving facial recognition,” and would instead add an “additional authentication process.” The agency also vowed to “protect taxpayer data and ensure broad access to online tools.”

“The IRS takes taxpayer privacy and security seriously,” IRS commissioner Chuck Rettig said, “and we understand the concerns that have been raised. Everyone should feel comfortable with how their personal information is secured, and we are quickly pursuing short-term options that do not involve facial recognition.”

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New Report: Pennsylvania’s Government Spending Damaging Economy

Bradley Vasoli

A report released this week by the Commonwealth Foundation (CF), a Harrisburg-based think tank, underscores the drawbacks of lavish government spending for ordinary Pennsylvanians.

Inflation and the economic policies that fuel it have already weighed on the minds of Americans for months. Federal spending during the COVID-19 pandemic has skyrocketed to create a debt nearing $30 trillion, equating to 133 percent of the U.S. gross domestic product and amounting to $239,000 per taxpayer.

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Commentary: The GOP Can Reclaim the Child Tax Credit – And Use it to Win in 2022

RealClearWire
family of three eating pizza

As part of his Contract with America, House Speaker (and my former boss) Newt Gingrich helped first introduce the Child Tax Credit (CTC), passing it in 1997. Originally the idea of President Ronald Reagan, the CTC was founded on the conservative principles that raising children is God’s work, and parents should not be punished or held back for choosing family in a country that is always moving forward. President Trump continued this tradition by doubling the CTC in 2017. As Speaker Gingrich said during a 1995 speech, “We believe that parents ought to have the first claim on money to take care of their children rather than bureaucrats.”

Democrats reformed the CTC in 2021, as part of their wildly overdone American Rescue Plan. They’ve sought to continue their changes to the CTC in the even-more-overdone Build Back Better Act (BBB), a hulking Frankenstein of bad Democratic ideas. But the new version of the CTC may be an exception. It continues fulfilling Speaker Gingrich’s contract, empowering families to work and earn, and to raise their children with their own values. The spirit and core of that policy is even better reflected by flat, poverty-busting monthly disbursement of the credit. It’s the only salvageable ship in the sinking BBB fleet.

The CTC – in its 2021 form – does not stray too far from the $500-per-child tax cut that was initially passed in 1997. The payments, which provided eligible families with up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child aged 6 to 17, stimulated regional economies, protected families from rising costs, provided direct cash relief, and removed bureaucratic hurdles.

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Commentary: We Can’t Split the Difference on Culture

Admin

The United States is an outlier among established democracies in two respects: We face both falling social trust and rising polarization. I have argued that the two dynamics connect in a doom loop. Trust in others and institutions falls, leading to greater polarization, which drives trust down even more. That is why the two processes are getting worse at the same time. A nasty dynamic has taken hold in the country, and it regularly affects all of us.

Many issues polarize us, but we should prefer polarization on economics to polarization on culture. Polarization is least damaging on issues most amenable to “splitting the difference”—as many economic issues are.

Consider taxes. Progressives want higher taxes on the rich, while conservatives want lower taxes. The possibility of compromise always exists—and even if it is obscured beneath the surface of our political tempers, uncovering it is not hard. For example, we could average our preferred tax rates, and no one would come away emptyhanded. Granted, that’s not how we have handled this issue in the past, but it’s at least conceivable.

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Tennessee Collects $3.3M in Taxes on $340M in Sports Bets in December

The Center Square

Tennessee collected $3.3 million in taxes from the $340 million in bets placed at Tennessee’s sportsbooks in December, according to Tennessee data acquired by PlayTenn.

December was the third-highest month for amount of bets placed since betting began in November 2020. In October, $375.3 million was wagered and $365.7 million was wagered in November.

More than $2.7 billion in bets were placed in Tennessee in 2021 with $39.3 million in taxes paid on $239.9 million in gross revenue.

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Bill Strips Ohio School Districts’ Ability to Challenge Property Valuations

The Center Square
Ohio State House

Property owners could be spared challenges to property valuations from local school districts and the potential of higher property taxes if a bill recently passed by the Ohio Senate clears the House and is signed by Gov. Mike DeWine.

Amended House Bill 126 stops local school districts from initiating challenges to property tax valuations and appealing a decision from the board of revision to the board of tax appeals if a property owner filed a challenge.

The Ohio School Boards Association (OSBA) called the legislation an overreach, while the Ohio Chamber of Commerce and the Ohio Realtors Association supported the bill and recently penned an opinion piece on it.

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Kansas Lawmakers Reveal Draft Bill to Eliminate the Food Tax

The Center Square
Laura Kelly

Kansas Gov. Laura Kelly and the Legislature’s Democratic leadership on Thursday released a draft bill to get rid of the food sales tax in the state. 

Known colloquially as the “Axe the Food Tax” bill, the legislation would eliminate the state’s 6.5% sales tax on food. The draft bill also includes a full exemption on state and local taxes for items bought at farmers markets. 

Senate Minority Leader Dinah Sykes, D-Lenexa, and House Minority Leader Tom Sawyer, D-Wichita, helped craft the legislation and are formally looking for co-sponsors. 

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