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What impact will the TCJA have on the US energy sector? a new paper from tpc, previously published by Resources for the Future, combines qualitative analysis with projections from TPC’s investment and capital model to show how the Tax Cuts and Jobs Act (TCJA) will affect the energy business. The study found that the TCJA had initially substantially reduced the sector’s effective tax rates. The long lasting tax deduction will be much less as many provisions of the TCJA are about to expire. By 2027, many energy firms will face higher effective tax rates than in pre-TCJA legislation.
Biden staff exodus, David Kamin, deputy director of the National Economic Council, is leaving the White House to return to NYU. He will be replaced by Aviva Arrondine, who is currently executive associate director in the Office of Management and Budget. Kamin, a law professor, was a leading voice in the White House for higher taxes on the wealthy.
Large increase in government borrowing cost, TPC’s Howard Glickman Explains Congressional Budget Office Forecast Federal interest payments increased substantially over the next decade, partly because of higher debt levels, but mostly because of rising interest rates. Bottom line: The era of free money for the federal government is over.
Windfall tax on oil and gas producers in UK becomes reality, United Kingdom taxed To overcome the worsening crisis of cost of living of the country in view of rising inflation. Finance Minister Rishi Sunak called the tax a “temporary targeted energy profit levy” along with an “investment allowance” to encourage energy firms to reinvest profits. Oil and gas companies will pay 25 per cent tax till prices return to normal levels.
And Hungary announced its “reasonable unforeseen tax”. Government announces new taxes including $823 million Taxes on banks and a similar sized tax on the energy industry, “The levy on additional profits is justified because we are not taking all the profits out of nowhere, only a significant portion to meet our goals,” Cabinet Minister Gergeli Gulias said.
In Spain, a major pop star is on trial for tax fraud. Colombian singer Shakira has an official residence in the Bahamas, but Spanish prosecutors allege she lived mostly in Spain between 2012 and 2014 and failed to pay $15.5 million in taxes during that time. a spanish court dismissed his appeal, so she is going for the test. If convicted, he could face fines and a prison sentence.
And in Lexington, Kentucky, a big “oops.” Fifty-three neighbors petition to change their tax district to Lexington one with high taxes He funds the city’s services such as garbage collection and street cleaning. That change was approved but the officials responsible for billing never got word. As a result, residents received those city services for free from 2013 to 2022, and Lexington lost nearly $200,000 in tax revenue. Landlords will not have to pay back tax. But starting in January, their taxes will go up as originally planned.
The Daily Deduction will be published next Tuesday, May 31, in honor of Memorial Day, May 30. It will return to its regular schedule on Monday, June 6, when Congress returns.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deductions. Sign up Here To have it delivered to your inbox at 8:00 a.m. on weekdays (only on Mondays when Congress is in recess). We welcome suggestions on new research or other news. Email Renu Zeretsky here Dailydeduction@taxpolicycenter.org,
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