May 14, 2021
Biden's 'core conviction' drives his push to tax corporations and the rich. It could cost him – Phil Mattingly, CNN. “President Joe Biden's steadfast belief in taxing corporations and the rich has become a central plank in his legislative agenda, even as he's warned of political peril and red lines from Republicans. GOP senators, some of whom Biden hosted in the Oval Office on Thursday as he seeks a bipartisan infrastructure deal, have rejected them outright. Some Democrats, cognizant of the political backlash past increases have wrought, have quietly warned of their unease.”
Top business lobbying groups are already laying the groundwork to attack the proposals and considering the kind of moneyed opposition that simply didn't materialize in Biden's successful $1.9 trillion Covid relief plan.
Trump tax break for certain businesses gets a pass in Biden plan – Kate Dore, CNBC. “President Joe Biden is calling for higher taxes on wealthy Americans to cover child care, paid family leave, education programs and other priorities. Yet the plans exclude a policy he vowed to reel in during the campaign: the 20% deduction for certain businesses.”
Progressive Wealth Taxes Could Slow Growth, Panel Told – Stephen Cooper. Law360 Tax Authority ($). “Higher taxes on wealthy Americans and corporations could finance President Joe Biden's infrastructure proposals and boost progressivity in the code, a panel of tax experts said Wednesday at a hearing to lay the groundwork for congressional action this year.”
States' fiscal windfall during the coronavirus pandemic – Felix Salmon, Axios. “Remember the massive fiscal crisis that was about to befall the states, unable to print their way out of the recession? Well, it's over before it even really began. Driving the news: California's catastrophic $54 billion anticipated budget deficit has become a $75 billion budget surplus over this fiscal year and next. In New York, the 2021-22 budget is $212 billion. That's a massive 10% increase over the previous year.”
The states have been helped by the aid earmarked for them in the most recent stimulus bill, as well as by an unanticipated spike in income tax revenues.
House Committee Approves Tax Haven Disclosure Bill – David van den Berg, Law360 Tax Authority ($). “The House Financial Services Committee approved legislation Wednesday that would require multinationals to publicly disclose country-by-country financial reporting, which its proponents say would document corporate abuse of tax havens. The committee voted 28-23 to send the Disclosure of Tax Havens and Offshoring Act to the full House.
Under the bill, each subsidiary of a large multinational corporation would have to file a report with financial information including its full legal name, the tax jurisdiction it's a resident of for tax purposes, the tax jurisdiction it's organized or incorporated in if it's not the same, and its main business activity.
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.