These 3 big pieces of Biden’s agenda kick off Jan. 1
https://www.yahoo.com/finance/news/these-3-big-pieces-of-bidens-agenda-kick-off-jan-1-200502039.html
Tag: taxes
Subsidies Won’t Fix the Energy Industry
“If Congress isn’t willing to end energy subsidies entirely, it could still make energy technologies more competitive by simplifying all 44 energy tax provisions. For instance, it could offer tax credits to companies based on what their emissions are, without requiring that they use any specific technologies to hit those targets. Unlike targeted subsidies, such performance-based provisions have historically led to less greenhouse emissions.”
https://reason.com/2022/11/26/subsidies-wont-fix-the-energy-industry/
The relationship between taxation and U.S. economic growth
“So, what did corporations spend their large tax cut on, if not wages or investment? Analysts at the International Monetary Fund find that 80 percent of the corporate tax cuts were repurposed into stock buybacks and dividends, which overwhelmingly benefited wealthy shareholders.16 And Lenore Palladino of the University of Massachusetts Amherst documents that these corporate buybacks and dividends also widened the racial wealth divide, finding that White stock-owners hold $27 for every $1 in corporate equity and mutual fund value held by a Black or Hispanic stock-owner.17
The main effects of the Tax Cuts and Jobs Act were less government revenue and regressive tax cuts for corporations, wealthy shareholders, and executives who bear nearly all the burden of corporate taxes even as the rate changes had little effect on business investment or workers.””
President Biden signs major reconciliation tax bill
https://www.grantthornton.com/insights/alerts/tax/2022/legislative-updates/president-biden-signs-major-reconciliation-tax-bill
Would a “Wealth Tax” Help Combat Inequality? A Debate with Saez, Summers, and Mankiw
Review: Can Legal Weed Win? Yes, but Only Through Deregulation
“When California legalized recreational marijuana in 2016, the state had more than 3,000 weed shops. They ostensibly served the medical market, but the rules were so loose that pretty much anyone who wanted pot could buy it legally. Six years later, California had less than half as many licensed marijuana merchants, accounting for between a quarter and a third of total sales.
Something clearly has gone wrong “when you try to legalize weed and accidentally end up illegalizing it instead,” note University of California, Davis, economists Robin Goldstein and Daniel Sumner. In their book Can Legal Weed Win?, they explain how burdensome licensing requirements, regulations, and taxes have frustrated plans to displace the black market.”
Brickbat: Pay Your Taxes. Taxis. Whatever.
“In 2013, Angus McCoubrey became convinced a Boston cab driver was taking a long route to run up the fare, so he paid only $5 of the $7 fare. The driver filed a complaint with a police officer, and the officer issued a citation. But McCoubrey, who doesn’t live in Boston, never received it. Earlier this year, McCoubrey was in a fender bender in Chilmark, Mass. When police ran his information, they found an outstanding warrant, not for misdemeanor taxi fare evasion but for felony tax evasion. The person who had entered the charge in the system all those years ago had dropped the “i” and left out the word “fare.” McCoubrey spent two days in jail before the issue was corrected. It turns out the original charge against him was also in error. The police officer wrote him up under a law that applies only to evading Massachusetts Bay Transportation Authority fares. Prosecutors dismissed that charge.”
L.A. Times Investigates California’s Marijuana Legalization Disaster
“Most people in California know what a disaster legalization has been. Most people know that the black market still accounts for the majority of marijuana purchases in California. Most people (especially those who live outside the big cities) are well aware of all the illegal grow operations. What this series does is provide specific examples of the dangerous environment that still exists, full of threats, violence, and even murder.”
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“There is the assumption in these stories that the breakdown in the system is due to a lack of control and enforcement by police and regulators. The stories are reluctant to address the real sources: The extent of state and local taxes drive up prices, and the ability of local officials to decide who can participate in cannabis is a huge factor in the persistence of the black market. While the stories do bring up these issues to provide some context, they really don’t contend with how much of the California black market is a result of the exorbitant costs to do business legally in the state.
Instead, the illegal grow operations and unlicensed dispensaries are presented as a failure of enforcement.”
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“The real failure here is that the state and local officials have put in so many regulatory barriers and taxes that the market cannot function properly within the boundaries of the law. Illegal grow operations flood the market with cheap goods, and licensed operations can’t compete because they have to give so much money to the government. The same holds true for dispensaries.”
If Biden’s Trade Policy Was Really Driven by ‘Equity,’ Trump’s Tariffs Would Already Be Gone
“tariffs of all kinds are regressive taxes that hike costs for consumers and make it particularly difficult for poorer households to afford basic goods.
Eliminating many tariffs that serve little purpose “would ease financial burdens in a small but real way for American low-income and minority workers and their families, helping to raise their living standards without intensifying competitive pressure””
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“Trump’s tariffs have contributed to inflation and helped to artificially inflate the cost of everything from appliances to housing. About two-thirds of all imports from China are now subject to tariffs when they enter the United States, with the average tariff being 19.3 percent. That’s six times higher than the average tariff on Chinese-made imports before Trump’s haphazard trade war began. That’s certainly not helping poorer Americans improve their standard of living.
But, as Gresser points out, other aspects of the U.S. tariff code are also to blame for imposing regressive taxes on poorer Americans. Under the “Most Favored Nation” (MFN) system of tariffs that are applied to imports from countries with which the U.S. does not have a specific trade deal, many common consumer goods are subject to higher tariffs than their luxury alternatives. Stainless steel spoons are tariffed at a much higher rate than far more expensive sterling silver spoons, for example, and cheap sneakers are charged a tariff more than five times higher than leather dress shoes.”
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“For months, we’ve been treated to headlines promising that the Biden administration is considering lifting Trump’s tariffs. In June, administration officials told The New York Times that lifting tariffs might reduce inflation by a quarter of a percentage point—even though independent studies suggested the effect could be greater. Yet nothing was done, even after Biden promised that corralling inflation was his “top domestic priority.””
New York Set to Hobble ‘Legal’ Cannabis with Taxes and Regulations
“A legal market with high taxes and overly stringent regulations is still a market in which people aren’t arrested and jailed. Rules can be loosened to what people will tolerate, as they have been elsewhere. But New York officials have yet to learn that markets function based on the choices of participants. The wishes of government regulators who want to use them as social-engineering tools and ATMs don’t really matter. Marijuana markets will thrive so long as there are customers to be served. The question is whether they will thrive in the open under light taxes and regulations, or underground to escape the heavy hands of politicians.”