Lunch Links: Tax Foundation Makes Dynamic Scoring Mainstream, DC Budget Autonomy, Tampon Exemption

May 26, 2016

Today is May 26, the anniversary of the Quill v. North Dakota decision of 1992, when the U.S. Supreme Court upheld “the continuing validity” of restricting state sales tax powers only to businesses with property or employees in the state. This decision is why Internet-based retailers are not required to collect sales tax to customers in a state where they have no property or employees. States are lobbying to pass a federal law changing the decision, and Justice Anthony Kennedy has suggested revisiting it.

Here are some interesting links I came across:

  • Inside the World of Dynamic Scoring: Brian Faler of Politico writes that the Tax Foundation’s dynamic scoring program—accounting for changes in the economy from tax changes—has changed the landscape, pushing the congressional Joint Committee on Taxation and the center-left Tax Policy Center to begin dynamic scoring programs. Dynamic scoring “has increasingly gone mainstream.” (Politico PRO)
  • House Passes Bill Stripping DC Budget Control: The Clarifying Congressional Intent in Providing for DC Home Rule Act of 2016, which stops DC from spending DC funds without congressional approval, passed by a mostly party-line vote of 240 to 179. It faces tough odds in the Senate and a veto threat from the President. (Roll Call / U.S. House of Representatives)
  • Bill Would Require Presidential Nominees to Release Tax Returns: The bill by Sen. Wyden (D-OR) would direct nominees to release tax returns within 15 days of securing the nomination, or else the IRS will release them. (Wall Street Journal)
  • Redefining Special Districts Could Have Big Taxing Consequences: The IRS is planning to crack down on the practice of state and local governments issuing tax-free bonds for private beneficiaries and non-governmental purposes. (Governing)
  • High-Earner Taxes on the Ballot in Four States: Voters in California, Colorado, Maine, and Minnesota will decide the measures. (Bloomberg)
  • Illinois Democrats Push New Budget: Unable to reach agreement with Governor Rauner (R), powerful Speaker Mike Madigan (D) is pushing through his own budget. Minority leader Sen. Christine Radagno (R) says the blueprint spends $7 billion more than available revenue, and will drive the state's unpaid bills to over $15 billion. (Chicago Tribune)
  • Arkansas Approves Use of Surplus Funds for Highways: The $50 million is expected to leverage $200 million in federal matching funds. (Arkansas Democrat-Gazette)
  • Nevada Commerce Tax Referendum Effort Abandoned: Nevada Controller Ron Knecht says the timeline to get enough signatures was too daunting. The modified gross receipts tax is expected to generate $60 million per year. (Las Vegas Review-Journal)
  • New York Approves Tampon Exemption: Gov. Cuomo (D) says he will sign the bill to carve out feminine hygiene products from the tax base. (It’s not a tampon tax, it’s the sales tax and a tampon exemption from it.) (Albany Times-Union)
  • Slovenia Raises Corporate Tax: The rate will go from 17 percent to 19 percent. (The U.S. rate is 35 percent.) (Reuters)

And be sure to check out our new map of state estate and inheritance taxes.

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