Donald Trump made headlines with his proposal for an βall-tariff policyβ as a replacement for the federal income tax system, in hopes of gaining negotiating leverage over adversaries. This idea was shared in a recent private meeting with Republican lawmakers.
In another development, a report from the Tax Policy Center delves into the racial disparities present in the federal income tax system. The report highlights 12 features of the system that impact Black, Latine, and White families differently, both across and within income groups. It also suggests potential reforms to promote racial equity.
Senators Eric Schmitt and Bob Casey are spearheading a bipartisan effort to make certain provisions of the ABLE (Achieving a Better Life Experience) Act permanent. This act, in effect since 2015, allows states to create tax-advantaged savings programs for individuals with disabilities, similar to those available for students under Section 529 of the Internal Revenue Code.
Recent research from Oxford University reveals that private capital firms have managed to circumvent income taxes on over $1 trillion in carried interest since 2000. This loophole has helped these firms save hundreds of billions of dollars in taxes over the past 25 years.
Furthermore, states are capitalizing on the popularity of online sports betting, a $16 billion industry, by enacting tax policies to boost revenue. For instance, Illinois and New Jersey have adjusted their tax rates on online sports betting companies to align with the growing demand.
With the tax landscape constantly evolving, subscribing to the Tax Policy Centerβs Daily Deduction newsletter can help you stay informed about the latest updates and developments in the world of taxation. Stay ahead of the curve and be in the know about new research and other significant news in the realm of taxes.
