The plan would hike the corporate business tax rate from its current 9 percent to 11.5 percent for companies with revenues from $1M to $25M, and to 13 percent for those earning more than $25M. Pixabay Democratic legislative leaders on Tuesday began advancing their plan for a state budget that, among other things, would temporarily raise taxes on corporations instead of hiking the state sales tax or instituting a new “millionaires tax.”Senate President Steve Sweeney said the corporate tax increase makes sense, since corporations were big beneficiaries from the recently approved Republican federal tax hike. He said individuals, including the state’s wealthiest, were hard hit by provisions in the federal plan that limits the deductions for state and local taxes and warned that high wage earners will flee the already highly taxed state if required to pay even more.But as ROI-NJ reports, the plan pushed by Sweeney and Democratic Assembly Speaker Craig Coughlin could … [Read more...] about NJ Politics Digest: Budget Plan Could Give State the Highest US Corporate Tax Rate
Paying corporation tax
This is how Trump’s corporate tax cut is backfiring
The corporate tax cut passed by President Trump and fellow Republicans that was in part designed to help dissuade US companies from moving profits overseas may instead make the practice a lot more rewarding. That is because companies that shifted profits linked to US sales, research or production previously had to pay taxes on the money at the rate of 35 percent when they brought those profits home. The new tax bill cuts the overall corporate tax rate to 21 percent and allows income from overseas to be taxed at about half that rate — to as low as 10 percent. Pharma giant AbbVie is a case in point. Its chief executive, Richard Gonzalez, told investors earlier this year that because of the change to a territorial system, whereby only profits reported by domestic subsidiaries face an IRS bill, the US drugmaker expects its tax rate to fall to 9 percent this year from around 22 percent in recent years. That ranks among the lowest of the companies in the S&P 500 that have announced … [Read more...] about This is how Trump’s corporate tax cut is backfiring
Tax Havens Blunt Impact of Corporate Tax Cut, Economists Say
Sections SEARCH Skip to content Skip to site index Business Day Subscribe Log In Subscribe Log In Advertisement Supported by ByJim Tankersley June 10, 2018 The new corporate tax cuts are unlikely to stimulate the level of job creation and wage growth that the Trump administration has promised, a trio of prominent economists has concluded, because high tax rates were not pushing much investment out of the United States in the first place. Instead, the researchers conclude, multinational corporations based in the United States and other advanced economies have sheltered nearly 40 percent of their profits in tax havens like Bermuda, depriving their domestic governments of tax revenues and enriching wealthy shareholders. That number suggests a jarringly large amount of what appears, to policymakers, to be investment pushed abroad by high tax rates is instead an accounting trick — so-called paper profits — which tax cuts will … [Read more...] about Tax Havens Blunt Impact of Corporate Tax Cut, Economists Say
The next big corporate tax cut? Senate panel OKs big break for utilities
Paul Egan Detroit Free Press Published 10:11 p.m. UTC Jun 5, 2018 LANSING – It could be Michigan’s next big corporate tax cut. And the latest blow to funding for local governments. A bill reported out of a Senate committee Tuesday would exempt Michigan utilities from personal property taxes on their transmission lines and pipelines — a change the Senate Fiscal Agency estimates could cost local governments $576.3 million annually within 10 years. The bill's sponsor, Sen. John Proos, R-St. Joseph, says it would help protect Michigan electricity customers from higher rates as Consumers Energy and DTE spend hundreds of millions of dollars to upgrade their infrastructure and improve reliability. Local governments — already struggling to stay afloat because of reduced state revenue sharing over time and property tax revenues that haven't recovered from real estate values that plunged during the last recession — say the bill as written … [Read more...] about The next big corporate tax cut? Senate panel OKs big break for utilities
John Phelan: Working Minnesotans will fill out more forms to pay more taxes
He said he’d do it and he did. On Wednesday, Gov. Mark Dayton vetoed the tax bill passed by the Minnesota Legislature, which would have conformed the state’s tax code to the new federal one. Gov. Dayton explained, “I am vetoing this bill because of its misguided priorities that give tax cuts to corporations and the wealthy over the education of our children.” A look at the tax bill reveals this to be utter nonsense. On the corporate side, the bill reduces the corporate income tax rate from 9.8 percent to 9.65 percent immediately, then to 9.1 percent in 2020. Minnesota would go from having the third-highest rate of corporate income tax in the United States to having the sixth-highest. It also repeals the corporate alternative minimum tax (AMT). Minnesota is one of only eight states to have this. It does little except add unnecessary complexity to the tax code. When the Department of Revenue last published a corporate income tax bulletin about a decade ago, it … [Read more...] about John Phelan: Working Minnesotans will fill out more forms to pay more taxes