Someplace between a whirlwind and a blizzard of presidency tax exercise – ITEP

.ITEP employees

You won’t find any pictures of Bernie Sanders and his mittens taken in this week’s rundown, but you will find the latest news on government tax debates, including suggestions on how to generate the necessary funding through tax increases for high-income households and corporate profits in California, Delaware, Hawaii, Maryland, and Washingtonas well as misdirected efforts to cut taxes Arizona, Iowa, south Carolina, Utah, and west Virginia. Also on the news are thoughtful improvements to targeted tax credits for families in need Connecticut and Maryland, proposed harmful barriers to revenue generation in Nebraska and Wyomingand renewed hope for the prospect of federal tax breaks.

Annual talks by governors and state-of-the-art speeches

  • NEBRASKA In his address, Governor Pete Ricketts took up a call to suppress local funding for schools and other public services by limiting the local authority’s ability to raise property tax revenues to 3 percent if necessary.
  • SOUTH CAROLINA Governor Henry McMaster called for the state’s income tax to be reduced by 15 percent within five years and all income tax brackets in his state address to be reduced in 2021.
  • Other less taxable speeches made recently included that of GEORGIA Governor Brian Kemp, INDIANA Governor Eric Holcomb and NEVADA Governor Steve Sisolak and NEW MEXICO Governor Michelle Lujan Grisham.
  • A full list of the planned addresses can be found here, including the addresses that will be coming in in the next week DELAWARE, HAWAII, MICHIGAN, MISSOURI, and TENNESSEE.

Budget and Covid-19 Response News

  • CALIFORNIA Governor Gavin Newsom’s proposed budget includes $ 14 billion in recovery provisions, such as direct payments of $ 600 to millions of residents and additional funding to help people get over into their homes and businesses To stay water.
  • Given a $ 1.4 billion annual revenue decline, lawmakers and HAWAIIGovernment governor David Ige is considering a number of proposals to increase revenue, including income tax increases for high-income Hawaiian residents. The administration is also considering reducing or suspending government tax credits and tax exemptions.
  • KANSAS Governor Laura Kelly included a provision in her latest budget proposal that taxed digital downloads, streaming services and online purchases.
  • Heads of State in LOUISIANA Adopted a cautious revenue forecast for 2022 as tax revenue is expected to grow over the next fiscal year, but not enough to offset the loss of roughly $ 800 million in federal funds.

Other major government tax proposals and developments

  • ARIZONA Governor Doug Ducey proposed an income tax cut of $ 200 million in his latest budget. However, the plan gave little detail on the details of the cut. – MARCO GUZMAN
  • WYOMING The Senate legislature passed a resolution aimed at amending the state constitution so that the public must vote on a state or local tax increase. – MARCO GUZMAN

State summary

  • A coalition in CALIFORNIA proposes to raise $ 2 billion to reduce homelessness to be raised through higher taxes on large businesses.
  • A COLORADO Group that spoke out against an election initiative for 2020 that would have retained a constitutional amendment that would have resulted in a steadily falling property tax rate plan to qualify for an election proposal for November 2022 that would lower the property tax rate for commercial real estate to 6.5 percent and 26 percent .
  • CONNECTICUT Leaders have proposed a solid child tax credit that starts at $ 150-450 for all families except the highest-income families and grows to $ 600-1800 per family over three years.
  • In order to improve their income tax structure, which currently only has taxable income of $ 60,000, lawmakers in DELAWARE support a bill to add three new parentheses of $ 125,000, $ 250,000 and $ 500,000 to better reflect the magnitude of inequalities today. The legislature is also considering waiving income taxes on unemployment benefits.
  • A FLORIDA The proposal that online sellers should collect and transfer sales tax has been passed on to the Senate’s Commerce and Tourism Committee and has received additional support as the state faces revenue restrictions caused by the coronavirus pandemic.
  • Efforts are being made to pick up IOWAThe inheritance tax, although it already exempts direct descendants and helps slow the concentration of wealth in the hands of extremely wealthy households.
  • Also a LOUISIANA Representatives proposed laws that would, among other things, increase the state gas tax by 22 cents over a period of 12 years.
  • MARYLAND Legislators began hearings this week on several bills that could improve their tax laws, including proposals to put a 1 percent surcharge on investment income, extend the EITC to more childless workers, close the interest gap, and strengthen the state’s estate tax.
  • MONTANA Legislators are considering reviving a previously vetoed proposal to give telecommunications companies real estate tax breaks to build broadband internet lines across the state.
  • Observers are confused by NEW YORK Governor Andrew Cuomo’s approach to his state’s revenue shortage, where he has tried to follow a tough line calling for federal aid and a much more deferential tact to the ultra-rich residents of his own state. His proposal to increase government revenues, for example, is mostly a gimmick in which the government borrows from high-income households and then repays them.
  • UTAH Lawmakers are considering a $ 80 million tax cut that could come in the form of an exemption from tax on Social Security income and military retirement benefits.
  • The topline finding of VERMONTThe Tax Structure Commission’s report was about rethinking government funding for public education. The report’s authors propose removing the state homestead education property tax, which funds nearly two-thirds of the state’s K-12 spending, and replacing it with an income tax to fund public schools. The report also recommends expanding the sales tax base and taking measures to make the Green Mountain State friendlier to those who want to work from home.
  • WASHINGTON State lawmakers held hearings on Governor Jay Inslee’s proposal to impose an excise tax on capital gains transactions. The proposal puts a 9 percent rate on the sale of certain stocks and similar assets after exempting the first $ 25,000 for single registrants or $ 50,000 for married couples. Since such assets are largely owned by very high-income households, the tax would only fall on the richest 2 percent of Washington residents.
  • Remove WEST VIRGINIAIncome tax, which accounts for 43 percent of the sovereign wealth fund, is on the wish list of Governor Jim Justice, the Senate President and others at this meeting. In addition to the dire impact this would have on tax justice, the move would cost the state nearly $ 2 billion in this fiscal year alone.

What we read

  • Policy makers and supporters are encouraged that President Biden and Treasury Secretary candidate Yellin advocate significant government tax relief in response to the Covid-19 pandemic.
  • Budgets, health care, pensions and racial justice are among the “biggest issues to watch” in the states this year, according to the governing.
  • The Center for Budgetary and Political Priorities writes that government income tax cuts are detrimental to both economic prosperity and racial justice.
  • The recently created maps show the Black and Hispanic lawmakers by state.

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