Social Security Cliffs, California Dreamin’ And Rocky Mountain Highs
Officials: Social Security and Medicare trust funds could go insolvent in about ten years. Trustees for Social Security and Medicare funds warn that the two programs will be insolvent by 2035 and 2036, respectively, absent congressional action. While the forecast is slightly brighter than it was last year, this year’s favorable economic circumstances—like low unemployment and more worker contributions to the programs—could change.
The California Supreme Court will hear arguments over the state’s power to increase taxes. Tomorrow the state’s highest court will hear oral arguments on the legality of the “Taxpayer Protection and Government Accountability Initiative.” The ballot measure, advanced by business groups, asks voters to require local governments to vote on all fee increases that are currently approved administratively. A two-thirds majority would be required to increase local special taxes. Democratic Gov. Gavin Newsom and Democratic lawmakers oppose the ballot measure, which they say would amend the Constitution and therefore need a two-thirds vote in the state legislature or ratification during a Constitutional Convention before appearing on the ballot.
California Senator proposes a digital ad tax to fund journalism. The measure, offered up by (name and party ID), would establish a digital advertising tax paid by digital platform and advertising providers, reports TaxNotes (paywall). The tax would apply to gross California revenue over $2.5 billion from sales of advertising services and user data. The revenue would support local journalism.
A bipartisan property tax deal in Colorado. State lawmakers, with just three days left in their legislative session, reached a deal on Senate Bill 233. The legislation would provide long-term rate cuts for homeowners and businesses and cap local revenue while protecting funding for K-12 schools. The bill would save an average homeowner several hundred dollars a year. The General Assembly hopes to pass this bill to stave off passage of ballot measures in November that could reduce local and state budgets.
A new income tax credit in Iowa. Last week Republican Gov. Kim Reynolds signed into law a new individual income tax credit for public safety officers moving to the state. TaxNotes reports (paywall) the credit applies toward moving expenses and is retroactive to tax years beginning on or after Jan. 1, 2024.
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