Settling Tax Bills, Fine Art, And A Deficit
A Bitcoin billionaire settles with DC. Michael Saylor and the company he founded, MicroStrategy, have settled a tax lawsuit with the District of Columbia’s Attorney General. Attorney General Brian Schwalb alleged that Saylor and MicroStrategy defrauded DC of millions of dollars in tax revenue by claiming residence in Virginia or Florida. Saylor and MicroStrategy agreed to pay $40 million to settle the suit while denying any wrongdoing. It is the largest income tax recovery in DC’s history.
Portland, Oregon, officials are trying to explain the collection system for a new tax. The city mailed nearly 12,000 “notice of debt” letters to residents claiming taxes owed related to preschool and homelessness service providers. The city requires quarterly payments for taxpayers who owe more than $1,000 in a tax year, but some residents had not done this or underpaid.
What are capital gains taxes doing to the fine art market? TPC’s Howard Gleckman steps in to the world of fine art to examine the incentives to avoid selling assets or monetize the value of one’s art without ever selling it. “[I]n the high-end art world, triggering capital gains tax is as tacky as hanging a $20 travel poster in your dining room.”
Mexico’s new president has her fiscal work cut out for her. President-elect Claudia Sheinbaum will need to fulfill a campaign promise to boost social programs with a budget deficit at its highest level since the 1980s. She says she has no plans to raise taxes, but economists, analysts and former government officials suggest that a tax overhaul is needed to boost revenues.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky.
