Yellen: US Not Ready to Sign Global Tax Deal This Year
Treasury Secretary Janet Yellen signaled that the US will not sign onto the OECD’s global tax framework this year. The Organization for Economic Cooperation and Development’s (OECD) plan would impose a global minimum tax on the world’s biggest and most profitable companies and update profit-shifting rules. Yellen told reporters that certain matters “need to be resolved before the treaty can be signed.” US-based tech giants are a key target of the proposed framework. Absent a signed treaty, more governments may implement digital taxes that could, in turn, spark trade tensions. Canada’s insistence on moving forward with its DST is already causing tension with the US.
Wisconsin state Republicans propose income tax cuts. After the Republican-controlled Senate rejected Democratic Gov. Tony Evers’ budget proposal, Senate Majority Leader Devin LeMahieu proposed a plan to cut income taxes for those earning between $15,000 and $225,000 from 5.3 percent to 4.4 percent. The plan would also establish a state tax credit for child care costs and increase income tax deductions for private school tuition. The governor’s office called the plan “unserious.”
Illinois Gov. Pritzker: No financial transactions tax. Democratic Gov. J.B. Pritzker says he’ll veto any legislation that imposes a financial transaction tax. There has been recent speculation over how Chicago Mayor Brandon Johnson might raise revenue, which faces a budget gap of over $500 million. Johnson, while campaigning, proposed taxes on securities trading contracts to raise $100 million. The Chicago Mercantile Exchange has threatened to leave the city if the tax goes into law.
Georgia lawmakers are reviewing the state TV and film tax credit. It’s the state’s largest tax incentive and has no cap. Supporters of the credit say it encourages film production in the state, but opponents say it costs too much. The tax credit for production companies has grown since 2005; it now covers to 20 percent of production costs, with an extra 10 percent if the film credits include the state’s “Made in Georgia” logo. In fiscal year 2023, 390 productions were filmed in Georgia, with an estimated $4.1 billion in direct spending in the state. The credit is costing every household in the state an estimated $300 every year.
Amsterdam plans an increase to its “tourist tax.” The city’s government has released its 2024 budget. It includes in increase to the daily fee charged to cruise ship visitors from $8.50 to $11.60. The nightly fee tacked onto hotel room prices would climb to 12.5 percent of the room rate. With those increases, Amsterdam could end up with the highest tourist taxes in the world.
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