Tips, Refunds, And A Half-Cent
New bill aims to exempt tips from tax. Reps. Thomas Massie (R-KY) and Matt Gaetz (R-FL) introduced the Tax Free Tips Act on Tuesday. Inspired by former President Donald Trump, it would amend the Internal Revenue Code to exempt tips from income or employment taxes. The Committee for a Responsible Federal Budget estimates that exempting all tip income from federal income and payroll taxes would reduce federal revenues by $150 billion to $250 billion over ten years, before factoring in additional lost revenue from behavioral effects.
Arkansas tax cuts are official. Republican Gov. Sarah Huckabee Sanders will sign legislation to lower corporate and individual income tax rates. It will be the third tax reduction signed by Sanders since taking office last year. Arkansas expects to end its current fiscal year with a $708 million surplus. Officials estimate the new tax cuts will cost about $483 million in the first year and $322 million a year after that.
Some homeowners in Maricopa County are due millions of dollars in property tax refunds. A class-action judgment found that thousands of homeowners were overcharged from 2015 through 2023. The total estimated financial impact to all tax districts in the county is $330 million.
A half-cent sales tax to address homelessness. Los Angeles County voters will decide in Novemberwhether to establish a permanent half-cent sales tax to fund affordable housing and homeless services. The Affordable Housing, Homelessness Solutions, and Prevention Now measure would repeal and replace Measure H. Voters approved that quarter-cent sales tax for homeless programs in 2017. Measure H expires in 2027.
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