“Tymon said there’s no guarantee that savings from cutting gas taxes would be passed on to consumers, whereas other relief mechanisms would have more control.
“If you do suspend the gas tax, you’re stopping a critical source of revenue that’s used to invest in transportation infrastructure,” he said. “It doesn’t seem like it’s a good precedent to set.”
Environmentalists are worried that a tax rebate could be a perverse incentive for gasoline-guzzling cars to hit the road more in an age of worsening climate change.”
“Having utterly failed to end the marijuana black market in California, lawmakers have decided to backslide into the drug war by increasing fines on those who operate outside of the state’s very costly and tightly regulated legal cannabis system.
California will begin 2022 not just by increasing taxes on legal marijuana cultivation but also by introducing new fines against anybody “aiding and abetting” any unlicensed dealers in the state.”
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“California’s implementation of recreational cannabis regulations, authorized by the passage of Proposition 64 in 2016, has been a massive mess. The ballot initiative allowed for municipalities to decide whether to allow cultivation and dispensaries, and two-thirds of them still refuse to do so despite the public vote. The state levies high cultivation and excise taxes that are escalated further by local sales taxes in any municipality that does allow for dispensaries to open up shop.
The result has been price and availability issues so severe that experts estimate that between two-thirds and three-quarters of all marijuana purchases take place through unlicensed dealers, which means that the state isn’t getting its share of the revenue. The problem is so severe that the editorial board at the Los Angeles Times recently acknowledged that high taxes for goods fuel black markets.”
“Most countries, including the United States since the passage of 2017’s Tax Cuts and Jobs Act, use some version of a “territorial” system. Territoriality is a basic principle of good tax policy and means that governments don’t tax their taxpayers’ foreign-earned incomes. That money is instead taxed by the foreign jurisdictions where it is earned. Firms can choose where to do business based on what country has the best tax regime. This approach puts pressure on governments with punishing tax regimes to become less draconian.
High-tax nations don’t like this competition, which is why they’ve been itching for the past decade to undermine it with a global minimum tax. And while the U.S. government is set to benefit immensely from the new regime, U.S. companies with foreign subsidiaries and income will not.”
“The idea behind these vacancy taxes is two-fold. First, the financial penalty would incentivize the owners of empty homes—supposedly real estate speculators holding out for higher rents—to put their properties on the market. Second, the revenue from the tax could then be spent on affordable housing programs.”
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“Yet a new report published on vacant properties in San Diego—one of the cities that is now considering a vacancy tax—suggests that any levy on empty units would do little to raise revenue or boost housing supply.
That report, published by the city’s Housing Commission (SDHC), used utility records to determine how many units in the city were left vacant for six months or more. (The study considered a unit unoccupied if its utility usage fell three standard deviations below a 60-month average.)
The SDHC obtained gas and electric records for 468,352 individual units from 2014 to 2019. During those five years, between 1,500 and 3,700 units were vacant for six months or more, giving the city a long-term vacancy rate of between .32 percent and .79 percent.
When examining water records, the SDHC study found 2,183 out of 252,324 units were potentially vacant for six months or more—a vacancy rate of .85 percent.
Contrary to what some politicians think, there isn’t a mass of hoarded homes that would be pushed onto the market by a vacancy tax.”
“The IRS desperately needs to put together an easier-to-use, simpler way for people to file their taxes and access benefits free of charge. Accomplishing that, of course, is easier said than done. The IRS has been underfunded for decades and does not have sufficient in-house technical expertise to build a free file system on its own.”
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“The actual work of doing your taxes mostly involves rifling through various IRS forms you get in the mail. There are W-2s listing your wages, 1099s showing miscellaneous income like from one-off gigs, etc. The main advantage of TurboTax is that it can import these forms automatically and spare you this step.
But here’s the thing about the forms: The IRS gets them, too. When Vox Media sent me a W-2 telling me how much it paid me in 2020, it sent an identical one to the IRS. When my bank sent me a 1099 telling my wife and me how much interest we earned on our savings account in 2020, it also sent one to the IRS. If I’m not itemizing deductions (like 70 percent of taxpayers), the IRS has all the information it needs to calculate my taxes, send me a filled-out return, and let me either send it right back to the IRS if I’m comfortable with their version or else do my taxes by hand if I prefer.
This isn’t a purely hypothetical proposal. Countries like Denmark, Sweden, Estonia, Chile, and Spain already offer ”pre-populated returns” to their citizens. California experimented with a version called ReadyReturn before it was shut down under pressure from H&R Block and Intuit.”
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“Congress needs to authorize more funding for the IRS.”
“Fracking has also accelerated life on the surface. Some landowners have made millions of dollars from selling the rights to oil beneath their land to major corporations. And struggling agricultural crossroads, including Watford City, the county seat 20 miles southeast of Novak’s farm, have found new life as boomtowns. During the past decade, a new high school and hospital, and housing developments sprawling from Main Street into the prairie, have arisen to serve the more than 10,000 people who have come from afar to work in the McKenzie County oil field.
But installing an industry atop an agricultural zone has brought less-heralded changes, too, including an elaborate system to deal with the saltwater, which is actually a polluted mix of naturally occurring brine, hydrocarbons, radioactive materials and more. Billions of gallons of it are produced by oil drilling and pumping each year.”
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“Over the following weeks, industry clean-up specialists dug dirt, built berms and installed pumps to try to decontaminate the pasture and its springs. But nearly three months later, a water sample taken far down the gully, where it broadens into a wetland, contained 149,000 parts per million of chloride — 600 times the advised limit, and a clear indication that saltwater and its dangerous contaminants were still present.
The damage to Novak’s land, while dramatic, isn’t uncommon in the North Dakota oil fields. More than 50 saltwater spills happen each year in McKenzie County, when tanker trucks crash, pipelines leak, or well pads or disposal sites catch fire or otherwise malfunction. Many spills are contained on well pads and at disposal sites. But others drain into fields, farmyards and roadways. Novak worried about his pasture, a water source for cows, deer, pheasants and more. And he feared the cumulative impact of so many saltwater spills in a county that is home to hundreds of streams and springs, and where farmers and ranchers often rely on water wells for livestock and themselves.”
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” Today, tax revenues from oil operations make up more than 50 percent of North Dakota’s annual budget. Republican leaders in the state, who hold all federal and statewide elected positions, have continued to push for a carbon-based economy, as North Dakota now depends on oil more than any other state. The North Dakota Legacy Fund, an investment account approved by North Dakota voters to guard some oil tax revenue for future expenses, is worth more than $8 billion. Oil tax revenue from that and other sources has buoyed schools and health care across the state, lowered income taxes for residents, and funded everything from flood containment systems in eastern North Dakota to major highway projects.”
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““Sometimes you have a really good company that will clean it up. Sometimes you don’t. Sometimes you don’t ever find out about it,” Jappe said. “I wish saltwater had a little bit more regulation. There just needs to be more accountability.”
Jappe would like the state to require tanker trucks hauling saltwater to carry placards that indicate the toxic load. She would like to see more state health and environmental quality inspectors on site, including some who live and work in McKenzie County year-round, as many now travel from the eastern part of the state for shorter stays.
She is especially concerned about the damage that can come if pipes injecting saltwater a mile underground were to leak. She told me she is not confident underground aquifers, let alone fields and pastures impacted by surface spills, are safe. She worries that residents don’t have enough protection under current oil-field oversight by state agencies that can’t keep pace with development.
“The first of the 2021 child tax credits hit parents’ bank accounts in July — but not for everyone. For many of the parents who need it most, accessing the money may be more of a struggle.
That’s because the IRS — an agency that knows little about the lowest-income Americans, who often don’t file taxes — has been tasked with distributing the money, up to $300 per month per child.
On July 15, the day payments first went out, the IRS said it sent $15 billion to 35 million families, 86 percent of which was sent via direct deposit. That suggests that the vast majority of initial recipients were from families who earned income and filed taxes, many of them middle- or lower-middle-income parents whose names, addresses, and bank accounts are on file from tax returns.
More than 10 million children live in poverty, according to 2019 data from the US Census. Of those, the People’s Policy Project estimates that about 7 million live in non-filing households. (Because these families are, by definition, somewhat difficult to track, estimates vary: The Census Bureau says that 36 percent of children in poverty are from families that did not file taxes in 2019, including 55 percent of children in families in deep poverty.)
Most of these families haven’t signed up to get government stimulus checks, either, effectively leaving thousands of dollars from the government on the table over the past year. The IRS gathered information on an additional 720,000 children in non-filing households where the parents registered to receive stimulus payments.
But that still leaves millions of children whose parents are eligible for the child tax credit (CTC) but who are not on track to receive it.”
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““The North Star should be making this as automatic as possible so families don’t have to take affirmative steps to get the support they need.””