Politicians advance plan to allow politicians to give more tax money to private businesses. From TheGazette.com:
Iowa communities would be able to designate special 25-acre development zones and use a share of sales tax and hotel-motel tax revenues to assist private projects of at least $10 million under legislation that’s getting bipartisan support.
House File 641 would establish reinvestment districts designed to spur development of “big ideas,” said Sen. Matt McCoy, D-Des Moines, who led a Senate Ways and Means subcommittee that revamped the bill representatives approved 87-9 last month.
This is, of course, an awful idea. Politicians are notoriously bad at allocating investment capital, and they tend to make sure it goes to their cronies and contributors. But when the state’s Governor, a member of the purported small government party, does an end-zone dance over a giant federal subsidy to a private utility controlled by a billionaire, the battlefield is left to the crony capitalists. The House version of HF 641 passed 87-9.
David Cay Johnston, No Bang for the Buck (Tax.com)
New York State’s comptroller says giving $2.8 billion in tax breaks over five years added more than a million jobs, which would be great news except that the state lost jobs.
I’m confident Iowa’s job-creating tax breaks work just as well.
Kyle Pomerleau, Suggested (Large) Tax Increase on Investors is Far From International Standards (Tax Policy Blog)
For capital gains, the current law is already out-of-step with international standards. After the fiscal cliff, combined state and federal capital gains rates increased from 19.1 percent to 28 percent. This is more than 10 percentage points higher than the international average. One suggestion, of course, is to tax capital gains at the rate at the 1986 rate of 28 percent. This would push America’s average combined federal and state capital gains rate to more than 35 percent, more than double the international average.
Howard Gleckman, Will the Slowdown in Health Cost Growth Change the Budget Debate? (TaxVox)
Patrick Temple-West, Tax collections from wealthy are saving government, and more (Tax Break).
Jim Maule, It’s Not a New Tax
Robert D. Flach offers your Friday Buzz.
Jack Townsend, IRS, UK and Australia Joint Efforts on Offshore Accounts
Inspirational tax blogging. No, really: Five Years After A Brain Aneurysm, Fear Of Dying Can’t Make Me Quit Living (Tony Nitti). Inspiring and moving.
News you can use. Book On New Jersey Wines Does Not Support Deducting Trips To France (Peter Reilly)
Her sister Everclear wasn’t implicated. From nbc-2.com, Ft. Meyers:
A chance traffic stop on I-75 in Lee County uncovers a massive tax fraud scheme. Deputies say the woman accused used her job to steal personal information – even stealing from people who were dead.
Thursday, 23-year-old Tequila Gordon was sitting in the Lee County Jail. Her bond was set at $72,000.
Prosecutors say she worked at liberty tax services in 2009 and stole personal information from dozens of people.
I would think having a first name of “Tequila” would make getting a good job challenging. It won’t be any easier now.