Will the tax code soon offer treaty-like treatment to Taiwan? A draft bill would add a new section to the tax code extending friendly treatment to Taiwanese firms operating in the US and American firms doing business in Taiwan. Roll Call reports that using the tax code to provide reciprocal benefits between two jurisdictions would be a unique. Because US relations with Taiwan are unofficial, policymakers cannot execute a formal tax treaty.
Is it too soon to close a loophole in Massachusetts’ millionaires tax? Starting this year, the state began imposing a 4 percent surtax on income exceeding $1 million. But some advocates say lawmakers must work quickly to close a loophole that could allow thousands of high-income taxpayers to avoid paying hundreds of millions of dollars. Even if couples file a federal joint return, they can file separately in Massachusetts and double their state tax exemptions.
Will Wisconsin consumers soon purchase baby items tax-free? A Republican-sponsored bill would eliminate state and local sales taxes for diapers, cribs, car seats, outlet covers, and other items used by households with young children. The Legislative Fiscal Bureau estimates the proposal could cost $21.6 million per year.
Texas Gov. Greg Abbott (R) sends $18 billion property tax cut proposal to voters for approval. The governor signed the legislation over the weekend, which required a special session to give lawmakers in the House and Senate time to reach a compromise. The proposal would make available $12 billion to reduce property tax rates for both homeowners and businesses. Voters will decide on the plan on the upcoming November ballot.
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