The House will vote Wednesday on repealing the “Cadillac tax.” The bill would repeal the Affordable Care Act’s 40 percent excise tax on certain high-cost employer-sponsored health insurance plans. The levy, which has been twice-delayed and is not scheduled to take effect until 2022, is projected to raise about $193 billion from 2022-2029. But the measure includes no provisions to make up the lost revenue.
As US-China trade war continues, global supply chains shift to new countries, but not the US. US manufacturers of everything from Crocs shoes to Lovesac furniture are moving production out of China and into countries like Vietnam, India, Taiwan and Malaysia to avoid President Trump’s tariffs on Chinese imports. The Wall Street Journal finds (paywall) little evidence that the manufacturers are moving production from China to the United States.
The IRS has chosen a contractor to review its Free File program. The agency has contracted with the Mitre Corporation to conduct an independent third-party review of the agency’s troubled Free File program. By fall, Mitre is expected to assess the current state of the program and suggest improvements. Free File is a partnership between the IRS and for-profit tax-prep companies that is supposed to provide free tax-filing software to low- and middle-income filers. But ProPublica has reported that the tax-prep firms have steered customers to paid software instead.
California bill will require President Trump and others to disclose tax returns to appear on its 2020 ballot. The legislature approved the “Presidential Tax Transparency and Accountability Act”on a party-line vote. Gov. Gavin Newsom must still sign the measure, which Republicans say is unconstitutional. The bill would require presidential and gubernatorial candidates to release the last five years of their tax returns to appear on the 2020 primary ballot. The state would publish the returns after redacting certain personal information. Eighteen other states are considering similar bills.
How is the tax code helping Silicon Valley workers save millions? The New York Times takes a close look at “qualified small-business stock.” People who have invested in a company valued under $50 million can, under certain conditions, avoid capital gains tax on up to $10 million or 10 times their investment, whichever is higher. Employees at start-up companies who get stock as part of their compensation plans are learning to maximize the tax benefit.
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