House passes debt limit bill. The House passed the Fiscal Responsibility Act last night with a 314-117 bipartisan vote. The 99-page bill now heads to the Senate with the debt limit breach looming.
Nebraska Gov. Jim Pillen (R) signs tax cuts package. The law increases the state’s property tax credit, limits school district property tax increase requests to 3 percent, reduces the top individual and business income tax rate to 3.99 percent by tax year 2027, exempts Social Security benefits from taxes in 2024, and provides tax credits related to child care.
Texas House and Senate pass conflicting property tax bills in special session. The lower chamber passed two bills that would use $12.3 billion of available state dollars to reduce property taxes, giving more money to school districts that lower property tax rates. The Texas Senate passed legislation that would expand the homestead exemption, which Gov. Abbott continues to oppose.
Maryland drivers will pay a higher gas tax starting July 1. The state’s gasoline tax will increase to 47 cents per gallon. The tax has increased by 30 percent over the past two years due to inflation and soaring fuel prices. The change will add about 65 cents to the fill-up of a 15-gallon gas tank, or $33.54 more in additional state gas taxes annually.
Will Vietnam offer compensation to firms affected by the global minimum tax? Vietnam has committed to comply with the global minimum tax. It will effectively raise its tax rate to 15 percent for many multinationals currently taxed at a much lower rate. Reuters reports that the Vietnamese government is considering offering these companies after-tax cash handouts or refundable tax credits to support their manufacturing or research outlays. To not run afoul of rules set by the Organization for Economic Cooperation and Development, smaller companies that are not within the scope of global minimum tax would also receive tax benefits.
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