Lunch Links: PA Gov Drops Tax Plans; Alaska Legislature to Meet Again; NC Couple Stole Tax Refunds from 300 People
June 22, 2016
Today is June 22, the date in 1936 when the U.S. first adopted a graduated corporate income tax. Unlike individual income taxes, a progressive corporate income tax doesn’t make much sense. The tax is paid in some combination by shareholders, consumers, and employees, and the income profile of these groups doesn’t always match up with the company’s profit level. A start-up tech firm can have very well-off owners and employees but would pay little tax; a large established retailer could have low-income workers and middle-class investors but would pay lots of tax.
Here are some interesting links I came across:
- Hillary Clinton Attacks Donald Trump Economic Plans: Clinton said Trump’s tax plan is dangerous and his economic plans would cause a recession. Trump replied that his plan will create jobs and pointed to his experience handling business debt. (CBS)
- President Promises Veto of IRS Funding Cut: A Republican bill to cut IRS funding by $236 million to $11 billion earned the veto threat yesterday. (Washington Examiner)
- Pennsylvania Governor Abandons Tax Increase Effort: Gov. Wolf (D) said he will no longer seek increases to the state’s income or sales tax. The budget is due July 1, and legislators had balked for over a year at Wolf’s tax efforts. (Philadelphia Inquirer)
- Philadelphia Congressman Found Guilty of Corruption: A jury took 14 hours to find Rep. Chaka Fattah (D-PA) guilty of all counts of racketeering, fraud, and money laundering. Our little claim to fame with him is the time when Rep. Fattah traded a series of blogs with one of our interns on his proposed transactions tax. Rep. Fattah lost his April primary but remains a member of Congress. (Forbes / Tax Foundation)
- North Carolina Couple Pleads Guilty to $12 Million in IRS Fraud: Walda Lorena Luna now faces up to 10 years in prison after pleading guilty to using stolen data from 300 individuals to collect 2,760 federal tax refund checks totaling $12,104,825 over four years. (Carolina Journal)
- Massachusetts May Drop Sales Tax Holiday: State legislators are debating whether to take back the $25 million in tax savings associated with the holiday. A better approach would be to reduce the tax rate so that consumers can enjoy the savings all year long. (Mass Live)
- Alaska to Have Another Special Session: Alaska Gov. Bill Walker (I) has summoned the Legislature to meet on July 11 to figure out how to close the state’s budget shortfall. An income tax proposal will be on the table, but the focus will likely be on paring back oil fund checks sent to Alaska residents. The Senate had passed the proposal but the House adjourned without passing it. (Fairbanks News-Miner / Governing)
Lots of discussion in Washington about the Republican tax reform blueprint, to be released on Friday.