Tax Notes’ Post

"To me, and this is perhaps later in our discussion, to me it's a question of separation of powers. "And I don't mean just a highfalutin constitutional theory. The point is these are important political decisions. They're supposed to be decided by majority vote and democracy with all of our special rules about vetoes and things like that," Don Susswein of RSM said. "And for the executive branch just to say, 'Well, we'd like to regulate more, and we don't think we can get that through Congress or it'll be a bitterly contested fight.' I just don't think they have the authority to do that. "And again, they would undoubtedly say, 'Well, the purpose of this was to save energy or to produce safety.' And yeah, that's true, but I think a reference to purpose is so vague and so subject to subjective decision-making and discretion and perhaps manipulation that I don't think it really says anything to say that you're doing something for the purpose of a statute." Check out the full episode of Tax Notes Talk, where Steve Rosenthal of the Urban-Brookings Tax Policy Center and Don Susswein of RSM discuss how Congress should handle agency delegation following the Loper Bright decision. ⬇️

Vice President Kamala Harris reiterated her argument that former President Trump’s proposal to institute a blanket tariff would effectively result in a national sales tax. In a debate September 10 in Philadelphia — the first between the two presidential nominees — Harris and Trump only briefly mentioned tax policy. In pitching their economic visions, Harris touted her plan to provide a $6,000 tax credit to families with newborns; a proposed boost in the tax deduction for start-ups from $5,000 to $50,000; and her proposed incentives for first-time home buyers, which include credits worth up to $10,000 and down payment assistance of up to $25,000. Meanwhile, Trump promised to “cut taxes very substantially” and denied his involvement in Project 2025, a conservative think tank’s broad blueprint for Republican policies that includes a lower corporate tax rate, repeal of the Inflation Reduction Act’s tax provisions, and a rollback of the IRA’s extra funding for the IRS. But the most spirited part of the debate regarding economic policy involved Harris’s characterization of Trump’s plan for tariffs of up to 20 percent on all imports. Read the full story from Alexander Rifaat: https://lnkd.in/eC5CiKyB Also, we're still accepting reader questions on tax policy and the election. Submit your queries here: taxnotes.co/election

"Every cloud has a silver lining, even in the world of tax. "While the U.S. Supreme Court’s decision in Moore v. United States has been described in federal tax circles as a taxpayer loss, there is a state tax silver lining. "For taxpayers with significant amounts of income deemed repatriated under IRC section 965 ('965 income') or global intangible low-taxed income, Moore is the 'gotcha' case supporting that the factors generating such foreign income should be included in the state apportionment factor." 💡 On the cover of Tax Notes State: Alysse McLoughlin and Kathleen Quinn examine the silver lining in Moore v. United States.

Tax policy has become a hot topic this election season. In recent weeks, tax proposals from both parties — from exempting tips and Social Security benefits from taxation to a vastly expanded child tax credit — have turned tax into a leading 2024 campaign issue. And perhaps overshadowed, but not forgotten, the 2025 tax cliff continues to be the elephant in the room as the expiration of most of the TCJA's provisions looms. Our editorial team of tax experts and on-the-ground reporters has been closely tracking key tax issues in the run-up to November 5. Now, we want to hear from you. We're asking our Tax Notes community to submit their questions about tax policy in the election and beyond. Submit a question below ⬇️

Should we take former President Trump seriously when he suggests we can use tariffs to pay for income tax cuts? Robert Goulder and Joseph Thorndike discuss Trump’s tariff proposals. Watch the full video: https://lnkd.in/ejW7jUpU

"Learning from mistakes is crucial, especially when the mistakes are unavoidable. "That principle is especially relevant to tax policy changes, such as the proposal to lower the U.S. statutory federal corporate tax rate to 15 percent. To avoid repeating errors, it is imperative that we carefully evaluate the potential consequences of such a significant change. "Former President Trump said that he will advocate for a reduction in the federal corporate tax rate from 21 percent to 15 percent if he is reelected president. That proposed reduction would be a mistake, and we argue for maintaining the statutory federal corporate tax rate at 21 percent. "Reducing the corporate tax rate to 15 percent could undermine fiscal stability and exacerbate economic inequality. Also, this move could have international ramifications given the likelihood of other countries following suit. "It would take us back to the early 1990s, when countries lowered their corporate tax rates to remain competitive and attract investment. Also, that type of reduction could undermine international efforts to curb harmful corporate tax competition." ➡️ On the cover of Tax Notes Federal: Doron Narotzki and Vered N. argue that reducing the federal corporate tax rate to 15 percent would be a mistake that could exacerbate economic inequality and undermine international efforts to curb harmful corporate tax competition.

A switch in control of the House in the next Congress would cause a tidal wave of change on the Ways and Means Committee, but there will be barely a ripple in the committee’s makeup if Republicans retain control of the chamber. Assuming Republicans hold on to a similar majority in the House in November, retirements will lead to the only major changes on the House Ways and Means Committee. Those include two Democratic and two Republicans choosing not to run for reelection. Check out the full story from Cady Stanton & Sword Doug: https://lnkd.in/eBszK97a