Income tax – Im Just Sayin http://imjustsayin.net/ Mon, 22 Nov 2021 11:13:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://imjustsayin.net/wp-content/uploads/2021/10/icon-5-120x120.png Income tax – Im Just Sayin http://imjustsayin.net/ 32 32 Income tax change could reduce the state’s case for borrowing money https://imjustsayin.net/income-tax-change-could-reduce-the-states-case-for-borrowing-money/ Mon, 22 Nov 2021 09:00:00 +0000 https://imjustsayin.net/income-tax-change-could-reduce-the-states-case-for-borrowing-money/ One of the issues most watched by Mississippians when the Legislature meets on Jan.4 will be Gov. Tate Reeves’ proposal to eliminate personal income tax. But Mississippians won’t be the only ones watching. Prominent New Yorkers will also be on the lookout who may impact the state’s ability to issue and pay debts to fund […]]]>

One of the issues most watched by Mississippians when the Legislature meets on Jan.4 will be Gov. Tate Reeves’ proposal to eliminate personal income tax.

But Mississippians won’t be the only ones watching. Prominent New Yorkers will also be on the lookout who may impact the state’s ability to issue and pay debts to fund long-term projects.

“Mississippi’s general fund is based on a diverse set of revenues… however there appears to be an interest in making a significant change to the state’s tax structure, with the governor and lawmakers proposing various means to reduce or d ‘eliminate the IRP,’ Fitch, one of the three major credit rating agencies, said in an analysis of Mississippi’s financial condition. “Fitch will continue to monitor developments related to the proposed changes. A structure that results in slower growth, a more volatile income system, or that results in a discrepancy in income from spending needs would be a negative credit consideration.

Fitch’s analysis is important because if the agency gives a state a bad credit rating, it will become more difficult for the state to issue bonds.

Mississippi General Fund tax revenue for the last fiscal year was $ 6.7 billion. If the state’s personal income tax had been eliminated, as Reeves wants to do in the next five years, the total would be $ 4.5 billion.

Take away personal income tax revenue and the state would have roughly the same amount of revenue it received before 2010.

Essentially, without the personal income tax, political leaders in Mississippi would try to fund the state’s needs for health care, education, and other areas at today’s costs with income from more than ten years ago.

Inflation over time normally results in increased costs of goods, wages and, yes, revenues received by government entities and private businesses. If a tax is phased out as Reeves wants, overall revenue might never decline from year to year, but that ignores the cost of inflation. With the phasing out of the tax, the state’s ability to meet the rising costs of goods and services is weakened.

Reeves maintains that the phase-out of income tax will boost economic growth, leading to increased revenue collected.

“The elimination of personal income tax will further help us fuel Mississippi’s economic engine for the next 100 years,” the governor said in an account setting his goals for the 2022 session.

But state economist Corey Miller said the research indicates that “changes in state taxes in Mississippi are likely to have marginal effects on economic growth, employment and population.” In a report to lawmakers, Miller added that studies have been inconclusive, to some extent, on how tax policy relates to economic growth.

But in general, in a small state like Mississippi, national economic conditions play a more important role than tax policy. Miller said various studies “suggest that state spending on primary, secondary and tertiary education as well as infrastructure can promote long-term economic growth.”

But Reeves argues that state revenues are booming and some of the surplus should be used to begin phasing out income tax.

Real incomes may be growing at an all time high.

In the 1990s, revenues also grew at an all time high mainly due to the introduction of casino games in Mississippi. But by the end of the decade, income growth was slowing, soon followed by a national recession.

This recession centered on America’s first large-scale exodus of low-paying manufacturing jobs to foreign countries. Mississippi was particularly hard hit because it had more of these jobs per capita than any other state.

The result was, for the first time in the modern era, that the state collected less revenue a year than the year before, forcing lawmakers to make significant budget cuts.

Tax collections didn’t really bounce back until Hurricane Katrina hit the Gulf Coast in 2005, prompting a massive influx of federal funds, insurance payments, and a large-scale rebuilding effort. which has led to an increase in tax collections for the state.

The latest growth, according to many economists, is being spurred not only in Mississippi but across the country by COVID-19 and the massive influx of federal funds that states have received due to the pandemic.

Reeves believes that with this growth, the time has come for the biggest tax cut in the state’s history.

The eyes of Mississippi and other key parts of the country will be watching to see if lawmakers agree.

This analysis was carried out by Mississippi today, a non-profit news organization that covers state government, public policy, politics and culture. Bobby Harrison is the senior reporter for Capitol Hill Mississippi Today.


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State Senator Miller submits law to repeal state income tax https://imjustsayin.net/state-senator-miller-submits-law-to-repeal-state-income-tax/ Sat, 20 Nov 2021 00:39:47 +0000 https://imjustsayin.net/state-senator-miller-submits-law-to-repeal-state-income-tax/ Repealing income taxes could also put more people back into the workforce, Miller said, and a consumption tax system would broaden the tax base and compensate for lost income. The bill, currently pre-tabled for the January 2022 legislative session, does not specify any consumption or sales tax. He said models from other states show that […]]]>

Repealing income taxes could also put more people back into the workforce, Miller said, and a consumption tax system would broaden the tax base and compensate for lost income. The bill, currently pre-tabled for the January 2022 legislative session, does not specify any consumption or sales tax. He said models from other states show that the increase in activity would also help to compensate.

“A consumption tax would broaden the tax base and make people pay for what they consume rather than what they earn,” he said.

Miller said the state currently brings in around $ 9 billion through income tax.

Some are skeptical that repealing state income tax would be worth the price.

Danny Kanso, senior fiscal and fiscal policy analyst at the Georgia Budget and Policy Institute, wrote in an emailed statement that the state had taken nearly $ 14 billion – half of the state’s budget – from taxes on the income of individuals and companies during the current fiscal year.

“The repeal of income tax would not only lead to a fall in state revenues, but would also likely lead to a violation of its constitutional responsibilities by the state to provide things like adequate public education for all children.” Kanso wrote. “Wishful thinking and baseless projections of new jobs and economic activity is not a strategy to increase income, and the elimination of income tax would leave Georgia… without a means to fund services and programs. ”

Local Representative Emory Dunahoo, R-Gillsville, has been trying to repeal state income tax for six years through his proposed “FairTax” bill, which would also repeal income tax in favor a consumption tax which, according to Dunahoo, would be “income neutral”. “The consumption tax would remove tax exemptions and be like a” sales tax on steroids, “which could be as high as 8-10%, he said.

“Everyone pays… for everything they buy,” Dunahoo said of the FairTax system. “But you are removing all the exemptions so that the money goes back to the state budget.”

When asked about Miller’s new proposal, Dunahoo said he would like to see a more specific plan from Miller on how to compensate for lost income and that Miler had not backed his FairTax legislation before.

Dunahoo said it had not been able to pass its FairTax legislation in the past.

Other Hall County officials have said they will support the repeal of the state’s income tax. Rep Timothy Barr, R-Lawrenceville, said he’s been a long-time sponsor of Dunahoo’s FairTax legislation. “We need to stop taxing productivity here in Georgia,” Barr said. “It would certainly take a lot of work to get there and ensure we keep a balanced budget, but I think extensive research shows that it can be done and that it would be a fairer tax system. “

Rep. Matt Dubnik, R-Gainesville, agrees that other states have successfully abolished income tax.

Miller said the policy is worth implementing as Georgia has a revenue surplus. In September, the state declared a surplus of $ 2.2 billion, even after filling its rainy day fund.


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“IMF pushes for reforms to increase corporate income tax, corporate tax” https://imjustsayin.net/imf-pushes-for-reforms-to-increase-corporate-income-tax-corporate-tax/ Thu, 18 Nov 2021 01:00:00 +0000 https://imjustsayin.net/imf-pushes-for-reforms-to-increase-corporate-income-tax-corporate-tax/ ISLAMABAD: RBF Chairman Dr Ashfaque Ahmed said IMF demands reforms to increase personal income tax (IRP), corporate income tax, remove GST distortions , strengthen implementation capacity and achieve a sustainable revenue collection mechanism. He also said he was not personally in favor of obtaining loans of $ 400 million from the World Bank (WB) under […]]]>

ISLAMABAD: RBF Chairman Dr Ashfaque Ahmed said IMF demands reforms to increase personal income tax (IRP), corporate income tax, remove GST distortions , strengthen implementation capacity and achieve a sustainable revenue collection mechanism.

He also said he was not personally in favor of obtaining loans of $ 400 million from the World Bank (WB) under the Pakistan Raises Revenues (PRR) project to introduce reforms in RBF, but the finance ministry needed foreign currency, so they extended support it.

“Personal income tax reforms are part of the IMF’s demands because the country is currently under the Fund’s program. We will soon reform personal income tax and remove distortions from the GST, ”BRF Chairman Dr Ashfaque Ahmed said on Wednesday during a speech at the Pakistan Prosperity Forum 2021, hosted by the Market Economy Research Institute (PRIME) Wednesday.

The chairman of RBF said the tax mechanism used to obtain rupee components because the finance ministry needed foreign currency to fulfill its obligations. He said the rupee component was provided through additional grants and that in the last fiscal year RBF received 2.5 billion rupees in May 2021 when there was not enough funding. time to use resources. The RBF is always strapped for resources, he added.

The World Bank’s IDA loan is cheap but he will not be happy to get a loan to introduce reforms in RBF, he added.

He said the RBF faces many challenges due to the fragmented tax base where the Center and the provinces have divergent jurisdiction under constitutional obligations. The collection of farm income tax (ACI) and GST on services is the responsibility of the provinces. The FBR offered to the provinces to share the data and requested permission to collect the AIT on behalf of the provinces and is still awaiting the response from the federating units.

He described various other challenges facing RBF, including lack of automation, low compliance rate, siled approach to data, complicated tax laws, retail rigidities, lack of capacity to seize supply chains for taxation, incorrect billing, smuggling, and financial and administrative aspects. the autonomy of the tax administration. He also said that the National Tax Agency was also on the cards, however, harmonizing taxes was one of the government’s top priorities.

He said that the RBF’s tax-to-GDP ratio was 10% while the expenditure-to-GDP ratio was over 20%.

He said there were 7.1 million registered tax filers out of which only 3.1 million filed tax returns and there was still a gap of 4 million tax filers. Although, he said, the number of filers fell from 1.4 million in 2015 to 3.1 million in 2021, the tax return on the filer basis had declined and needed to be reversed.

He said the RBF is considering a 10-point plan to place the smart taxation model under which the focus is on centralized planning and centralized monitoring, bringing automation, revenue resource alignment, realignment of jurisdiction, restoration of the credibility of the tax administration, suppression of smuggling, internal complaints mechanism, regional taxpayer offices (RTO) exempt from tax target and facilitation.

He said the administrative cost of RBF was 0.6 percent of the total revenue collected, of which 80 percent was used for the payment of labor wages. He also said that the RBF collection remained stable at 3.8 trillion rupees in three years from 2017 to 2019, but increased to 4.734 billion rupees in 2020-2021. In the first four months (July-October), he said the RBF fundraising exceeded its target of 235 billion rupees and raised 1,842 billion rupees in the first four months of the current fiscal year.

Responding to a question, he said Pakistan had never violated the OECD’s confidentiality clauses for information exchange. When asked who would be held responsible for the steady growth in income from the 2017 to 2019 tax year, he replied that he did not want to comment, but added that RBF needed a system. improved and increased monitoring to achieve desired performance.

Tax experts Huzaima Bukhari and Dr Ikram Ul Haq have occasionally said that the rich do not pay taxes and there is a need to simplify tax laws. Supreme Court attorney and tax expert Dr Ikram Ul Haq said the PTI-led government continues to tinker with the tax system. He proposed lowering tax rates; Income tax rate should be lowered by 10% on average, single-digit sales tax from 5-6%, and single-digit tariffs to lower tax rates and expand the tax base. He said the ratio of direct taxes should be increased to 66%, while the rest are indirect taxes, with the aim of shifting the tax burden onto the upper class of society.

He said there were 107 million broadband subscribers and there was a need to simplify the tax system to get them into the tax net. He proposed to the government to simplify tax laws, abolish all tax exemptions and minimize regulations. He said the cost of tax exemptions was Rs 2.3 trillion and fundamental reforms were needed to overhaul the tax system. He said there was a need to establish the Pakistan Revenue Authority (PRA).

PIDE Vice-Chancellor and renowned economist Dr Nadeem Ul Haque said on the occasion that policymakers, including politicians, bureaucrats and donors, were not listening and asked if anyone representing political elites, bureaucrats and donor representatives were present in the room. No one of these segments was found in the lobby.


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CBDT Unearths Rs 600 Crore In Black Revenue After Raids On Two Groups Gurugram, Real Estate News, ET RealEstate https://imjustsayin.net/cbdt-unearths-rs-600-crore-in-black-revenue-after-raids-on-two-groups-gurugram-real-estate-news-et-realestate/ Tue, 16 Nov 2021 04:24:00 +0000 https://imjustsayin.net/cbdt-unearths-rs-600-crore-in-black-revenue-after-raids-on-two-groups-gurugram-real-estate-news-et-realestate/ NEW DELHI: Unrecognized income of Rs 600 crore was detected after the income tax department recently raided two groups of companies based in Gurugram in Haryana, the CBDT announced on Monday. The searches were carried out on November 10 on groups, one engaged in real estate and hotels and the other a group manufacturing tools […]]]>
NEW DELHI: Unrecognized income of Rs 600 crore was detected after the income tax department recently raided two groups of companies based in Gurugram in Haryana, the CBDT announced on Monday.

The searches were carried out on November 10 on groups, one engaged in real estate and hotels and the other a group manufacturing tools and equipment, he said in a statement.

“The research action on these groups has led to the detection of estimated unrecorded income of up to Rs 600 crore,” said the Central Commission for Direct Taxes (CBDT).

Rs 3.54 crore in cash and jewelry worth Rs 5.15 crore were seized while 18 bank records were brought under control, the tax department’s governing body said.

“Various incriminated documents and electronic data relating to unrecorded real estate investments, unrecorded sales and purchases, inventory difference, acquisition of shell companies, Benami properties and transactions, bogus unsecured loans and demand money for shares, evasion of capital gains, etc. were seized. ”

“Evidence that large sums of money were received in the form of wages and salaries by family members without any qualification or participation in the management of businesses was entered in one of the groups”, a- he asserted.

The CBDT did not identify the entities searched.


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Personal Income Tax Extension Deadline Approaches for Virginia Residents https://imjustsayin.net/personal-income-tax-extension-deadline-approaches-for-virginia-residents/ https://imjustsayin.net/personal-income-tax-extension-deadline-approaches-for-virginia-residents/#respond Wed, 10 Nov 2021 21:34:38 +0000 https://imjustsayin.net/personal-income-tax-extension-deadline-approaches-for-virginia-residents/ RICHMOND, Va. (WFXR) – Virginia Tax is reminding taxpayers that if you haven’t yet filed your personal income taxes for 2020, the automatic six-month extension deadline is fast approaching. This deadline is Wednesday November 17th. “Like last year, we encourage taxpayers to file electronically and request a refund, if you have one, through direct deposit. […]]]>

RICHMOND, Va. (WFXR) – Virginia Tax is reminding taxpayers that if you haven’t yet filed your personal income taxes for 2020, the automatic six-month extension deadline is fast approaching.

This deadline is Wednesday November 17th.

“Like last year, we encourage taxpayers to file electronically and request a refund, if you have one, through direct deposit. Typically, it takes up to four weeks to process an electronically filed return and up to eight weeks to process a paper return. However, due to the COVID-19 protocols in place, it will likely take even longer for a paper return to flow through the system. “

Craig Burns, Tax Commissioner

Some other aspects of the next deadline include:

  • If your income was $ 72,000 or less in 2020, you can file your taxes for free.
  • If you don’t need to make a payment, you have several easy-to-use options, including online, direct deposit to your bank account, check or money order; and credit or debit card, both of which incur additional charges.
  • For secure online self-service, you can create and sign in to an individual online account that allows you to track your return or refund.
  • You can also check the status of your refund by calling 804-367-2486 or by using the Where’s My Refund app on the Virginia Tax website.

If you have questions about your return and need more information, visit the Virginia Tax website or contact the Virginia Tax customer service hotline at 804-367-8031.

For the latest news delivered to you, subscribe to the WFXR latest news mailing list

Get the latest news, weather and sports on your smartphone with the WFXR News app available on Apple and Android.


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Removal of the tax exemption on foreign source income will not discourage FDI https://imjustsayin.net/removal-of-the-tax-exemption-on-foreign-source-income-will-not-discourage-fdi/ https://imjustsayin.net/removal-of-the-tax-exemption-on-foreign-source-income-will-not-discourage-fdi/#respond Tue, 09 Nov 2021 05:52:00 +0000 https://imjustsayin.net/removal-of-the-tax-exemption-on-foreign-source-income-will-not-discourage-fdi/ KUALA LUMPUR: The proposed removal of the tax exemption on income from foreign sources as announced in the 2022 budget should not be seen as a negative measure that could discourage foreign direct investment (FDI), said the finance minister Tengku Datuk Seri Zafrul Abdul Aziz(Photo). He said that as an open market economy, the attractiveness […]]]>

KUALA LUMPUR: The proposed removal of the tax exemption on income from foreign sources as announced in the 2022 budget should not be seen as a negative measure that could discourage foreign direct investment (FDI), said the finance minister Tengku Datuk Seri Zafrul Abdul Aziz(Photo).

He said that as an open market economy, the attractiveness of the investment ecosystem is not only determined by incentives, but also depends on the completeness of the country’s tax system in accordance with tax standards. international.

The finance minister said this would ensure the right parts are taxed, as well as a fair distribution between jurisdictions,

He added that this will also put an end to tax evasion and tax evasion.

“We are sending the message that we do not tolerate such practices,” he said today during the Invest Malaysia 2021 Virtual Round 2.

Tengku Zafrul pointed out that other countries such as Hong Kong and Singapore have removed or amended their laws in order to comply with international standards.

As part of the 2022 budget, the government has proposed to impose a tax on income from foreign sources and collected in Malaysia from January 1, 2022.Bernama


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Eliminating corporate tax will hurt North Carolina https://imjustsayin.net/eliminating-corporate-tax-will-hurt-north-carolina/ https://imjustsayin.net/eliminating-corporate-tax-will-hurt-north-carolina/#respond Fri, 05 Nov 2021 10:09:16 +0000 https://imjustsayin.net/eliminating-corporate-tax-will-hurt-north-carolina/ More than 60 percent of North Carolina oppose the elimination of corporate income tax. In fact, most North Carolinians want to see profitable businesses contribute what they need to ensure that we can fund a better future for people across our state. As the final state budget draws to a close, legislative leaders and the […]]]>

More than 60 percent of North Carolina oppose the elimination of corporate income tax. In fact, most North Carolinians want to see profitable businesses contribute what they need to ensure that we can fund a better future for people across our state.

As the final state budget draws to a close, legislative leaders and the governor should listen to the people and maintain an income tax on corporate profits, to ensure a fair recovery from this pandemic and to strengthen long-term community health.

But will North Carolina’s policymakers listen to the people and plan for the future, or will they continue to legislate for the powerful few and lock future generations into a model of governance that holds North Carolina back?

Here’s the reality of who will benefit and who will be hurt if policymakers refuse to choose a better future for North Carolina:

Who benefits from the elimination of corporate tax? Eliminating corporate income tax would send the vast majority of the $ 900 million annual tax break to out-of-state shareholders. Estimates suggest that less than 20 percent of the reduction in the corporate tax rate would stay with residents. Of that small number of shareholders in North Carolina, 69% of the next tax cut will go to the richest 20% of taxpayers.

The vast majority of profitable corporations that will benefit will be crown corporations. 68% of corporate income tax paid in North Carolina comes from large corporations that derive less than 25% of their income from North Carolina. These companies do not pay income tax based on payroll or property in North Carolina – just sales – so further rate cuts give them no additional incentive to grow or create more jobs. here. It also doesn’t encourage them to move existing jobs and facilities out of state to North Carolina; the vast majority of other states also tax corporations only in proportion to their sales, so their tax liability to those states does not change if they move here. Such movements are rare, in any case.

This is also the reason why corporate tax cuts do not lead to economic growth. As research has shown, the impact of tax cuts on business investment would not only be small, but it would take years to take full effect. Even with a very sharp reduction in total state and local taxes paid by businesses, see even a small de minimis change in economic production and employment, North Carolina is expected to hold constant public investments in schools, infrastructure and other public goods upon which private businesses depend – which will be very difficult to accomplish if the corporations is eliminated.

Who is affected by the elimination of corporate income tax? Eliminating corporate taxes would reduce government revenues by about $ 900 million per year. These are dollars that would not be available to support public schools, public health, and other public goods that ensure people and communities are doing well and that businesses have the well-trained workers and good roads they need. need.

  1. Children: State failure to adhere to Leandro’s funding plan for Early Childhood and Kindergarten to Grade 12 education would be at serious risk in the years to come when funding needs to support a strong basic education in North Carolina will increase when the tax cuts are scheduled to take effect.
  2. Small local businesses: The reality is that few businesses pay corporate tax because they choose to organize differently, are unprofitable or take advantage of numerous tax loopholes and use tax avoidance strategies. Without public money to invest in technical assistance, access to capital, and other supports for local small businesses, North Carolina’s growth model does not create wealth locally.

When businesses don’t pay their share, the lack of revenue would mean cuts to public institutions that support a good quality of life in North Carolina – unless the revenue is offset in other, less equitable means. To make up for lost revenue from all of the proposed income tax cuts, it would take more than doubling the current sales tax rate, which would put more taxes on the backs of North Carolina residents instead. companies.

Everyone in North Carolina is ultimately hurt by the short-sighted decision to prioritize the interests of powerful and profitable corporations over the inhabitants of our state today and future generations.

Alexandra Forter Sirota is director of the Budget & Tax Center, a project of the NC Justice Center.


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Wyden Unveils Billionaire Income Tax | Brownstein Hyatt Farber Schreck https://imjustsayin.net/wyden-unveils-billionaire-income-tax-brownstein-hyatt-farber-schreck/ https://imjustsayin.net/wyden-unveils-billionaire-income-tax-brownstein-hyatt-farber-schreck/#respond Tue, 02 Nov 2021 18:33:17 +0000 https://imjustsayin.net/wyden-unveils-billionaire-income-tax-brownstein-hyatt-farber-schreck/ This morning, Senate Finance Committee Chairman Ron Wyden (D-OR) released the Billionaire Income Tax legislation, his proposal to impose a valuation regime on the government. market value to certain high income and high net worth individuals who target unrealized gains. In addition to the text, Wyden published an article by article of the bill. PREVIEW […]]]>

This morning, Senate Finance Committee Chairman Ron Wyden (D-OR) released the Billionaire Income Tax legislation, his proposal to impose a valuation regime on the government. market value to certain high income and high net worth individuals who target unrealized gains. In addition to the text, Wyden published an article by article of the bill.

PREVIEW

The billionaire income tax is designed to tax marketable and non-marketable assets held by ultra-rich people by targeting unrealized gains. Beginning in 2022, people with total assets of at least $ 1 billion or who earn $ 100 million in annual income for three consecutive years would be subject to tax. Initially, covered taxpayers would be subject to a single tax on all earnings accrued before the new regime was imposed. Thereafter, a mark-to-market system would apply annually to marketable assets at the end of the tax year. The amount subject to tax would be based on the difference in market value from the previous year. Taxpayers would be allowed to spread any tax payment over five years.

For assets that are more difficult to value, such as real estate, the proposal would effectively charge interest charges when the asset is finally sold, eliminating the need to value the assets each year. These non-marketable assets would be subject to both capital gains tax and a “deferred recovery amount,” which together would total a maximum of 49%, according to the bill’s summary.

The proposal would impose reporting obligations on intermediary companies in which the covered taxpayers hold at least 5% of the capital. Likewise, special rules would apply to trusts, which would be subject to lower thresholds of $ 100 million in assets or $ 10 million in annual income.

Finally, the legislation deals with capital losses by offering covered taxpayers two options:

  • carry losses forward to offset potential future gains, or
  • carry back losses for up to three years (the carry-back option would be limited to taxes paid as income tax billionaires, but not income tax or other types taxes).

While the Joint Committee on Taxation has yet to release an official cost estimate for the proposal, Wyden says the tax would affect around 700 people.

OUTLOOK

The bill is based on Wyden’s 2019 white paper, “Treat Wealth Like Wages”. The release of the legislation comes as Democrats scramble to find other sources of revenue to pay an estimated $ 2 trillion in Build Back Better Act spending. While the House Ways and Means Committee has already marked out legislation that increases this amount, lawmakers have been forced to review revenue sources after Senator Kyrsten Sinema (D-AZ) signaled her opposition to increases in rate for individuals and businesses, which constitute an important part of the revenue provisions of the Ways and Means Act for better reconstruction.

Sinema has indicated his support for the billionaire income tax, but another key centrist Democrat, Senator Joe Manchin (D-WV), has reportedly expressed deep concerns about the proposal ahead of its release. Manchin has since called the proposal “convoluted,” and as of this writing, Democratic leaders of the House and Senate tax drafting committees have sent mixed signals as to whether the proposal will be included in the package. .

House Ways and Means Committee chairman Richard Neal (D-MA), for example, argued that the billionaire income tax proposal is too complicated to bring in reconciliation discussions at this stage. budget, especially since it was not fully considered by the committee process. Rather, Neal prefers the revenue provisions included in the Ways and Means Reconciliation Bill, which he says are much simpler and have already been approved by the committee. While Neal has publicly stated that the proposal will not be included in the package, Wyden said she “is not dead,” according to reports.

The plan may also face constitutional challenges, which could depend on whether the plan qualifies as a permitted income tax under the Sixteenth Amendment.


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Washington State Voters to Have Their Say in Litigation Capital Gains Tax | Washington https://imjustsayin.net/washington-state-voters-to-have-their-say-in-litigation-capital-gains-tax-washington/ https://imjustsayin.net/washington-state-voters-to-have-their-say-in-litigation-capital-gains-tax-washington/#respond Mon, 01 Nov 2021 23:06:00 +0000 https://imjustsayin.net/washington-state-voters-to-have-their-say-in-litigation-capital-gains-tax-washington/ (The Center Square) – Voters in Washington state will have the opportunity to weigh in on Tuesday, at least symbolically, the controversial new capital gains tax set to take effect on Jan.1, 2022. Advisory vote 37 asking whether the tax increase should be maintained or repealed is not binding. It does, however, give Washingtonians the […]]]>

(The Center Square) – Voters in Washington state will have the opportunity to weigh in on Tuesday, at least symbolically, the controversial new capital gains tax set to take effect on Jan.1, 2022.

Advisory vote 37 asking whether the tax increase should be maintained or repealed is not binding. It does, however, give Washingtonians the chance to send lawmakers and Democratic Gov. Jay Inslee a message about their feelings about a tax that was approved on the last day of this year’s legislative session without a single Republican vote and includes a provision that removes the right of referendum.

The law imposes a 7% tax on capital gains over $ 250,000 for individuals and joint filers from the sale of assets such as stocks and bonds. Exceptions include the sale of real estate, livestock and small family businesses.

Voters are yet to vote on the matter, but the nascent tax – already the subject of multiple court challenges – appears to be facing an uphill historic battle beyond its last-minute partisan passage by lawmakers ahead of it. be promulgated by Inslee in May. 4.

Inslee called the new tax a question of fairness.

“This is a big step towards more justice in overturning the upside down tax system that has been so unfair to Washingtonians for so many decades,” said Inslee, who first proposed a tax on most people. -values ​​in 2014, during the signing ceremony.

The highest-ranking Republican in the House recommends that citizens vote to repeal the No.37 advisory vote tax.

“They have to send a message to the legislature that is enough,” said parliamentary minority leader JT Wilcox, noting that the state is on record. income and the growth rate.

He hinted that the capital gains tax was part of a Democrats’ plan to impose a general income tax in Washington.

“No one really believes that a tax on people in a subgroup is going to mean with that subgroup,” Wilcox said. “Everyone knows that taxes are going up.

Nonetheless, proponents of the tax, including Inslee, call the capital gains tax an excise tax in an attempt to circumvent the state’s prohibition of a progressive tax on income. returned. In general, an excise tax is a tax imposed on the sale of specific goods or services, or on certain uses.

Article VII, Section 1 of the Washington State Constitution states that “All taxes shall be uniform on the same class of property within the territorial limits of the authority which levies the tax and shall be levied and collected only ‘for public purposes. The word “property” as used herein means and includes everything, whether tangible or intangible, subject to property. “

For nearly 90 years, the Washington State Supreme Court ruled that income is a good as defined by the state’s constitution, effectively prohibiting a progressive income tax. In 1932, Washington voters approved a progressive income tax with a 70% margin to pay for education. The following year, the state Supreme Court struck down the tax in its Culliton vs. Chase decision, noting “that it would certainly defy the ingenuity of the most sophisticated lexicographer to formulate a more comprehensive definition of ‘property’ than that found in the Washington State Constitution.”

Since then, the State Supreme Court has always ruled that income is property. In a one-page decision from 1960, Seattle Apartment Operators Association, Inc. v. Schumacher, the High Court said that “the constitution can be amended by the vote of the people.”

Washington state voters have since rejected six constitutional amendments allowing for a progressive income tax, as well as four income tax initiatives.

Additionally, the Internal Revenue Service and state revenue departments recognize capital gains as income.

Opposition to income tax continues to spread across Washington state as a county and ten cities acted to ban a local income tax, including Longview, Battle Ground, DuPont, Barn, Kennewick, Long-term vision, Moses Lake, Richland, Spokane, Spokane Valley, Union Gap and Yakima County. On Tuesday, voters in Yakima City will consider a charter amendment to ban a local income tax.

Across the ideological spectrum, Washington State’s capital gains tax has received negative scrutiny.

The Washington, DC-based Tax Foundation has criticized the new tax, particularly opposing the idea that an excise tax and an income tax would cease to be different if only politicians stopped labeling them. differently.

“According to legal reasoning, the excise tax argument is weak, because the tax passed by lawmakers in no way functions as an excise tax,” wrote Jared Walczak, vice president of projects. State at the Tax Foundation’s Center for State Tax Policy. , in an October 25 analysis. “Not only are capital gains taxed as income in every state with an income tax, and by the federal government, but the proposition here is not to tax the transaction but rather the net – that is – ie net income. “

He went on to note: “The capital gains transaction tax, or the privilege of buying and selling investment instruments. It relates to net gains and losses over a defined period. It is definitely an income tax – on a narrow category of income, but an income tax nonetheless. Courts across the country have always been concerned with substance over form when it comes to taxation, and substance over name. The mere fact of characterizing a tax on a category of income as an excise tax does not change its fundamental character.

Back in the other Washington, the more liberal Seattle Times called for a “no” vote in a editorial Originally published September 26: “A judge will decide whether the capital gains tax hastily passed by the Washington legislature violates the state’s constitution, but voters should signal their dissatisfaction by encouraging lawmakers to repeal advisory vote No. 37.

The Seattle Times Editorial Board concluded by saying, “The least state lawmakers deserve for their premature maneuver is a collective nudge from the people they are meant to represent.

Wilcox went further in his advice to voters voting.

“And then I think they have to send an even stronger message when they vote for their representation,” he said. “This is how you really change the mindset that we must always have more and more government.”


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Voters to vote on permanent income tax for city parks on Tuesday https://imjustsayin.net/voters-to-vote-on-permanent-income-tax-for-city-parks-on-tuesday/ https://imjustsayin.net/voters-to-vote-on-permanent-income-tax-for-city-parks-on-tuesday/#respond Sat, 30 Oct 2021 09:36:05 +0000 https://imjustsayin.net/voters-to-vote-on-permanent-income-tax-for-city-parks-on-tuesday/ LANCASTER – Voters in the city will decide on Tuesday whether to convert a five-year renewal tax for the parks department to a continuous or permanent tax. The Lancaster Parks Tax would also increase the income tax rate from 0.15% to 0.25%, generating around $ 1 million in additional revenue each year starting Jan. 1, […]]]>

LANCASTER – Voters in the city will decide on Tuesday whether to convert a five-year renewal tax for the parks department to a continuous or permanent tax.

The Lancaster Parks Tax would also increase the income tax rate from 0.15% to 0.25%, generating around $ 1 million in additional revenue each year starting Jan. 1, 2023, the superintendent said. of parks, Mike Tharp.

He said the tax levies for Lancaster’s parks have remained the same for 35 years and have been offered every five years. If this levy were to pass, a new levy would not need to be proposed unless a change in the tax rate is requested.

“Right now, when you have a five-year levy and it’s for the measure that we have, the dollar amount, you can’t pledge against it,” Tharp said. “You can lend against it, but the loan is very tiny.”

He said until the last park tax, the city had always borrowed $ 100,000 for trucks and lawn mowers for the parks department and was paying them back in five years. But after the last drawdown, the city borrowed $ 200,000 for the parks.


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