US Not Sold On A Global Tax On Billionaires.
Treasury Secretary Yellen says no to a global tax on billionaires. US Treasury Secretary Janet Yellen rejected the idea raised by Brazil, France and other countries. Brazil, leading the Group of 20 major economies, has called on the group to coordinate an approach to taxing the ultra-wealthy, akin to the global corporate minimum tax in the works. Yellen said the US would not support talks on the issue, The Wall Street Journal reports. “…[T]he notion of some common global arrangement for taxing billionaires with proceeds redistributed in some way—we’re not supportive of a process to try to achieve that.”
IRS is modernizing, slowly but surely. The IRS is testing an updated Individual Master File (IMF) system and hoping to switch to a more modern version in the 2025 filing season. The IMF dates back to the 1960s and the IRS has been working to update it since 2009. IRS Commissioner Danny Werfel told Nextgov/FCW the IRS is testing a new processing engine that might replace the current one, with 2028 as target a deadline for the replacement.
Will the IRS be able to maintain low audit rates for small businesses earning under $400,000? IRS Deputy Commissioner Douglas O’Donnell told a Tax Council Policy Institute audience that the $400,000 threshold is “more complicated in the small business arena than I think anyone expected.” One complication, reports TaxNotes (paywall): How to define a small business beyond just taxable income. Pass-through entities’ net income doesn’t always reflect their size because of factors like deductions and losses.
Will Wisconsin let another city levy a sales tax? Last year lawmakers reached a deal allowing Milwaukee to be the first city in the state to impose its own sales tax. Now, Madison’s Common Council approved a non-binding resolution urging state lawmakers to expand local tax authority to the capital city. Madison wants to be able to impose a city sales tax of 0.5 percent, as well as a tax in communities served by Madison’s metro bus system. Wisconsin has a statewide sales tax of 5 percent, and most Wisconsin counties impose an additional 0.5 percent sales tax.
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