Will there be a global deal on corporate taxation of multinationals later this year? The Financial Times reports that Group of Seven countries is closing in on an agreement. France, Germany and Italy think the US offer of a15 percent global minimum tax could set the stage for an international deal by July. United Kingdom Prime Minister Boris Johnson also welcomes the US commitment to a tax on digital companies. Treasury Secretary Janet Yellen will meet with G-7 finance ministers in early June.
Less progress on a bipartisan infrastructure bill. White House aides say the president is willing to keep talking to Senate Republicans but one top GOP lawmaker, Roy Blunt, says his party may pull the plug on negotiations in “a week or 10 days.” Democrats increasingly are skeptical that Republicans will agree to any bipartisan bill.
In Louisiana: House lawmakers would hide corporate tax incentive records from public. They voted to change the public records law to allow the state’s economic development agency to hide details of certain corporate tax incentives. They say it would shield sensitive employee data from identity theft. Currently, the public can search Louisiana Economic Development tax incentive programs to find out how many jobs each subsidized company created and the hourly wages they paid employees.
Missouri legislature eases tax burdens on medical marijuana companies. Medical marijuana has been legal in Missouri since 2018, but growing, transporting, or selling marijuana violates federal law. That means medical marijuana companies can’t deduct business expenses from their federal taxes. But Missouri lawmakers just passed a bill to allow the firms to deduct business expenses on their state tax returns. The bill won near-unanimous approval and awaits the governor’s signature.
Will Massachusetts make its film tax credit permanent? The House unanimously passed a budget that would retain the current film tax credit beyond its scheduled 2023 expiration. The Senate Ways & Means Committee, however, offered reforms recommended by the Tax Expenditure Review Commission. They would extend the program to 2027, increase minimum in-state spending from 50 percent to 75 percent of costs, cap credit-eligible salaries at $1 million, and bar firms from transferring the credit. The current credit reduces annual revenue by between $60 million and $80 million.
On The Prescription this week. Rebecca Thompson, director of the Taxpayer Opportunity Network at @ProsperityNow will be the guest Thursday at noon on the TPC webcast, The Prescription. She’ll talk to TPC senior fellow Howard Gleckman about how low-income filers fared in the just-ended tax season and ideas for making filing easier. Register here.
Tax professionals: Register now for the 2021 Virtual IRS Nationwide Tax Forum. The IRS announced that the forum will be held over five weeks beginning July 20 and includes a series of live-streamed webinars every Tuesday, Wednesday, and Thursday. It will educate and update tax professionals on the law, cybersecurity, ethics, and other topics. Register here.
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 firstname.lastname@example.org.