Lunch Links: House to Take Up Tax Break for Olympic Medal Winners; Trump Child Care Plan Unveiled; Louisiana Puts Off Tax Plans to Address Budget Deficit
September 14, 2016
Today is September 14, the date in 1959 when Public Law 86-272 was enacted. This law limits state tax power so that sending traveling salespeople into a state doesn’t subject a company to the state’s corporate income tax. The law was intended to preserve the status quo while Congress studied a more permanent resolution; the subsequent Willis Commission report of 1965 made a number of recommendations that Congress has yet to act on more than fifty years later.
Here are some interesting links I came across:
California Ex-Legislator Sentenced in Film Tax Credit Bribery Case: Former California Assemblyman Tom Calderon was sentenced to 6 months in federal prison related to his accepting bribes from an undercover FBI agent posing as a film executive lobbying for more generous film tax credits. (Los Angeles Times)
California Tampon Exemption Vetoed: California’s sales tax is among the narrowest in the country, applying only to some goods; the rate is, not coincidentally, among the highest. Efforts to expand the sales tax and possibly lower the rate have run into opposition. Simultaneous efforts to carve more things out of the sales tax base ran into the veto pen of Gov. Brown (D), who yesterday stopped a new sales tax carveout for feminine hygiene products. Supporters say they may push for a tax on candy and soda to make the overall proposal revenue-neutral. (Governing)
Trump Child Care Plan Unveiled: Under the proposal, a federal program would pay for six weeks of maternity leave for new mothers, parents would deduct up to the average cost of child care from their taxes (if they make less than $500,000), the EITC would be expanded with new rebates, and new tax-free accounts would be permitted for child care. The pay-for would be combatting fraud in the unemployment insurance system. (NJ.com)
Olympic Tax Break Considered This Week: The U.S. House Ways and Means Committee will consider legislation to exempt Olympic medal-winner prize money from income tax. The Joint Committee on Taxation says it will be a $3 million tax cut over ten years. (U.S. House / JCT)
Louisiana Will Need to Revisit Taxes: The state put off hard decisions but an underlying structural budget deficit means the Legislature will have to revisit the issue. (Louisiana Business Report / Bloomberg)
New Jersey Votes on Combined Reporting: The bill will be up for a Senate vote on Thursday.