Nor do any of Connecticut’s other counties have county-level government despite being allocated a collective $691 million under the bill.
The traditional county lines are useful for certain purposes, like electing a few countywide officials, but there is no proper county government to receive, let alone spend, these funds.
.@JaredWalczak looks at similar issues in Alaska, Massachusetts, Rhode Island, Vermont, and other states.
All told, there’s nearly $2 billion to counties without governments or independent revenue streams, not even counting the $395 million to Massachusetts’ functional counties, which have very few expenditures.
Like states, local governments can only spend their Fiscal Recovery Funds on four categories of eligible expenditures:
Collectively, local revenue was 𝘂𝗽 about $29 billion (4 percent) in 2020, largely due to increased property tax collections, yet the American Rescue Plan Act provides $130.2 billion to local governments, most of which have no losses to offset.
Many states will struggle to find eligible ways to spend the money and will often wind up spending vast sums on relatively unimportant projects simply because they have no higher eligible use.
In a few states, moreover, the federal government has allocated money to counties with no functioning governments at all.
Several may have no entity even capable of certifying for the funds, but others may be able to do so despite having no conventional functions to spend it on, or, in the case of Massachusetts’ functional counties, even though the aid vastly outstrips their budgets.
The legalization and taxation of recreational marijuana remains one of the hottest trends in state taxation.
Currently, 16 states and D.C. have passed bills or approved ballot measures that allow for the sale of recreational marijuana: tax.foundation/3cFu2Wm
Alaska, Arizona, California, Colorado, D.C., Illinois, Maine, Massachusetts, Michigan, Montana, Nevada, New Jersey, New York, Oregon, South Dakota, Vermont, Washington have passed bills or approved ballot measures that allow for the sale of recreational marijuana.
And more states are poised to pass legislation this session.
In total, actual recreational marijuana sales are happening in 11 states.
Our new study outlines how several OECD countries allowed businesses to more quickly expense investments during the pandemic: buff.ly/39xKzto@ElkeAsen
While the temporary nature of most of these expensing and accelerated depreciation provisions reduces their tax revenue impact in the long run, it also limits their long-run economic benefits.
Temporary provisions may encourage businesses to shift future investments forward to take advantage of the larger deductions but would not raise the level of investment permanently.
Income tax repeal is on the agenda in West Virginia, with Gov. Jim Justice and Republicans in both the House and Senate releasing plans for dramatically lowering or eliminating the state’s individual income tax. buff.ly/3fEia9d@JaredWalczak#wvleg
Despite their shared aims, these plans represent vastly different approaches. They are not even aligned on which income should benefit from rate reductions.
House Republicans propose a straightforward reduction in income tax rates, while their Senate counterparts initially exclude investment income, and the governor excludes pass-through business income as well as investment income.
President Biden has proposed raising the U.S. corporate income tax rate from 21 percent to 28 percent and imposing a 15 percent minimum tax on the book income of large corporations.
An increase in the federal corporate tax rate to 28 percent would raise the U.S. federal-state combined tax rate to 32.34 percent, highest in the OECD and among Group of Seven (G7) countries, harming U.S. economic competitiveness and increasing the cost of investment in America.
President Biden could provide business and household relief by eliminating Trump tariffs: buff.ly/3oXN0v2@ericadyork
Tariffs raise prices and reduce the quantity of goods available to U.S. businesses and consumers, which results in lower incomes, reduced employment, and lower economic output in the United States.
Using the Tax Foundation General Equilibrium Model, we estimated that the Trump administration tariffs would amount to an annual tax increase of $80 billion (the 17th largest tax increase since 1940).
Excise taxes are commonly employed to deter consumption or internalize societal costs, but in West Virginia, Gov. Jim Justice (R) is proposing to increase the excise tax on soft drinks to pay for part of an income tax reform. buff.ly/3wcSIgu@UBoesen
He’s not alone in considering ways to raise revenue as state lawmakers look to a time after the pandemic and ponder how their tax codes impact taxpayer behavior.
It seems almost certain, for example, that the post-pandemic world will include more remote work opportunities, which will allow taxpayers more freedom to shop for competitive tax environments with less considerations of the physical location of their employer.