Inconsistencies, Limits, and Impacts

Taxes

Tune in at 9:30 am for an event on cryptocurrency and tax administration. TPC, along with H&R Block, hosts the discussion. New currencies raise many of the same tax issues as other forms of property. How are tax authorities responding to new technologies designed to circumvent regulation? Are these responses adequate? You can watch the live webcast of the event here

New tax documents show major reporting inconsistencies for President Trump’s properties. ProPublica reports that the Trump organization made its businesses look more profitable to lenders and less profitable to tax officials, with differences so extreme that one expert called them “versions of fraud.” Specifically, a lender that financed two of Trump’s Manhattan buildings received different numbers for some expenses, profits and occupancy rates than New York City tax authorities.

How to limit political influence into federal investigations—such IRS audits. TPC’s Gene Steuerle looks at  the how some IRS officials resisted efforts of past presidents to influence enforcement and thinks Congress should do more now to prevent abuses. “Among the possibilities are to further require, not simply offer protection for, whistle-blowing.”

The worldwide cost of the US-China trade war. The International Monetary Fund estimates that the trade war between the two nations could reduce global growth by 0.8 percent. The IMF estimates the world economy will grow  3 percent this year, down from 3.8 percent in 2017, “At 3 percent growth,” the report states, “there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions.” 

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at dailydeduction@taxpolicycenter.org.

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