Haven Sent Edition – ITEP
The release of the “Pandora Papers” has shown once again that states and their tax systems play an important role in, and in this case, aggravate wealth inequality. states like Nevada, Delaware, and now — as the documents reveal—South Dakota, are popular tax havens for the rich to protect their wealth from state taxes such as inheritance tax. Elsewhere, the governors of North Dakota and Maryland have said they want to use their surplus budget revenues for temporary tax credits and permanent cuts. And Missouri finally increased its fuel tax for the first time since Wayne’s world has been released, which could be great… news for their infrastructure.
Main tax proposals and developments of the State
- The “Pandora Papers” revealed how states like SOUTH DAKOTA Benefit from a complex financial system designed to help the super rich hide money in investments and real estate in low tax places around the world. The state, in particular, allows dynasty trusts by removing specific rules and benefits from increased tax revenues from bank franchises, the balance of which has doubled since 2015. – MARCO GUZMAN
- CALIFORNIA Governor Gavin Newsom recently enacted a 12.5% tax on vaping products to help fund public health and education efforts, as well as a bill to extend a tax on cellphones and to devote more of the funds raised to building high-speed Internet infrastructure in underserved parts of the state. Newsom also issued a veto, overturning a bill that would have prevented cities from turning over sales tax revenues to businesses.
- DELAWARE is undertaking a multi-year property tax reassessment process as part of an education equity lawsuit settlement.
- The biggest beneficiary of LOUISIANAThe New Orleans Pelicans’ NBA team is the Quality Jobs program, which offers a payroll tax rebate and sales tax to companies that create well-paying jobs. The team receives $ 3.65 million in cash back from the state each year. A recent audit showed that the best ROI for the Quality Jobs program was $ 0.10 per dollar.
- MARYLAND Gov. Larry Hogan laid out a plan to channel the state’s $ 2.5 billion budget surplus to the rainy day fund, targeted aid as well as permanent tax cuts.
- An investigation in MICHIGAN showed that 13% of families eligible for the child tax credit did not know about CTC or did not know how to receive it. These families were more likely to speak Spanish or have less formal education, indicating that more strategic outreach of the CCT is needed to ensure it reaches all eligible families.
- MISSOURIthe increase in the gasoline tax came into effect. The 2.5 cent increase is the first fuel tax increase since 1992. Unfortunately, the increase will be fully refunded to those who keep their receipts and request them, significantly compromising its potential for improvement. financing of infrastructure.
- NEBRASKA lawmakers and interest groups convened by the chair of the legislative revenue committee discussed ideas for tax reform at a hearing last week, setting up a familiar debate on whether to expand the tax regressive selling, reducing progressive personal and corporate income taxes and / or funneling more money into property tax cuts. None of the major plans discussed at the hearing focused on increasing the incremental incomes of wealthier Nebraskans or offsetting the state’s reverse tax code with improved refundable credits for families in need. middle and low income.
- A study of NEW YORK The city’s congestion pricing toll revealed it primarily affected a small group of wealthy commuters, not working-class families as opponents claimed.
- NORTH DAKOTA Governor Doug Burgum has announced that he intends to use $ 207 million of the projected $ 1.1 billion in surplus revenue from the 2019-2021 General Budget Fund to provide an income tax credit for individuals of $ 500 for returns filed for the 2021 and 2022 tax years.
- OREGONThe unusual kicker credit will amount to a 17% refund of 2020 income taxes in 2021.
- TENNESSEE considers new models of education financing. As it stands, Tennessee ranks poorly when it comes to education funding. If changes to the school funding formula leave some schools with less funding, they may need to increase property taxes to make up the difference.
What we read
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