Trump’s New Tax Idea
Donald Trump, Republican presidential candidate, proposed last week to exempt overtime pay from income taxes. This is on top of his proposals to exempt Social Security income and tips from income tax. Democratic presidential nominee Kamala Harris generally agrees with Trump on tips, but would instead raise the corporate income and capital gains tax rates, while offering new tax credits and deductions for families and small businesses.
How do Americans feel about taxes on Social Security benefits? In a Wall Street Journal survey, 64 percent of respondents strongly supported the elimination of taxes on Social Security Benefits. The idea was not as popular when asked if the proposal would be supported if it increased national debt.On Capitol Hill, this week.Tomorrow, the Senate Finance Committee is holding a hearing about the Inflation Reduction Act. The House Ways & Means Subcommittee on Health will hold a hearing on Wednesday to examine the prevalence and treatment options for chronic diseases in America. The panel’s Trade Subcommittee is holding an hearing on Friday to discuss US leadership in setting and enforcing robust digital trade rules.
TIGTA – Flaws in the AMT rulemaking for corporations. The Treasury Inspector General for Tax Administration (TIGTA), found that the Office of Chief Counsel failed to adequately review and take into account public comments regarding interim guidance on the corporate alternative minimal tax (AMT). The corporate AMT was established under the Inflation Reduction Act and is a tax of 15 percent on large corporations’ “book” income. TIGTA recommended the Chief Counsel create a written system to track all comments letters submitted before issuing rules or guidelines. The IRS disagreed, stating that it already had the necessary written procedures and guidance. The Michigan Supreme Court will consider the Family Cottage Tax Cap. Bloomberg Tax (paywall) reports that the state’s high courts will review a corporation appeal regarding the taxable values of a cottage owned by a corporation. A court of appeals ruled that value of the property should not be capped because more than half of a corporation’s ownership interest had been cumulatively transferred in the same calendar year. The corporation claims that the ownership interest was not more than half.
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