Democrats’ Budget Set to Include Global Minimum Tax, Treasury Secretary Says

Treasury Secretary Janet Yellen said Sunday that she is confident that the Democrats’ budget will include a global minimum tax for corporations just days after nearly 140 countries endorsed the measure.

“I am confident that what we need to do to come into compliance with the minimum tax will be included in a reconciliation package,” Treasury Secretary Janet Yellen told ABC News on Sunday. “I hope that it will be passed and we will be able to reassure the world that the United States will do its part.”

Though the United States and 135 other countries signed the agreement, each nation must pass its own legislation to enact the minimum tax rates. Democrats are currently crafting the budget, a spending package that would reshape the social safety net, but the process has slowed by disagreements between the party’s moderate and left wings.

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Republican Leaders Push Back Against Global Business Tax

Mike Crapo and Kevin Brady

Republican lawmakers are pushing back against the Biden administration’s plan to join a global compact implementing a tax on U.S. corporations regardless of where they operate.

One hundred and thirty six136 countries agreed Friday to implement a global business tax, and G-7 finance leaders agreed to the plan Saturday. President Joe Biden and Treasury Secretary Janet Yellen praised the plan.

Proposed by the Paris-based Organization for Economic Co-operation and Development (OECD), an intergovernmental economic organization, the global tax is necessary to respond to an “increasingly globalized and digital global economy,” OECD said.

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Commentary: Bearing the Tax Burden of the Biden Administration

Joe Biden

As congressional Democrats push a $3.5 trillion social spending package, everyone is wondering: “How are we going to pay for that?” To President Joe Biden, the answer is simple: raise taxes.

Included in Biden’s proposed tax plans — erroneously named the American Families Plan — are hikes in personal income tax and capital gains tax rates. The plan would raise the top marginal income tax rate from 37 percent to 39.6 percent and reclassify long-term capital gains and qualified dividends as ordinary income for those with taxable income above $1 million, resulting in a top marginal tax rate of 43.4 percent, according to the Tax Foundation.

Despite the frustration (or excitement) that Americans have towards Biden’s income and wealth tax proposals in the midst of an economic recovery, Americans should be paying closer attention to his other proposals, the American Jobs Plan and the Made in America Tax Plan.

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Commentary: The Treacherous Road to Runaway Inflation

In January, 2001, America had a balanced budget, low debt, and was at peace. Here, briefly, is what lay ahead: war, financial crisis, civil unrest, massive growth of the federal government, and now severe inflation.

Never in the history of America has our government in its ineptitude created such a false economy, risking hundreds of years of hard work on unsound and unworkable economic policies. The Founders wisely relied on dispersion of power. They knew there would be dishonest and incompetent politicians but, in this case, the entire government is infected with deceptive leaders.

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Commentary: The Biden Inflation Tax, Made Clear in One Chart

Joe Biden walking with "American Jobs Plan" sign

What is all this “Biden inflation tax” talk really about? What is the actual effect of inflation on the lives of real people? 

Well, below is a chart that compares yearly wage and inflation rates for each month from 2017 through July of this year using Bureau of Labor Statistics data. Wage rates are in blue and inflation (as measured by the consumer price index) is in red. When blue is on top, as it was during the entire Trump administration, workers’ wages are beating inflation and their standards of living are improving. When red is on top, they’re not.

While President Biden claims that it is “indisputable” that his jobs plan “is working,” this chart unequivocally shows that it is not, at least not for American workers. Rather, inflation is surging, more than wiping out any wage gains those workers might have experienced.

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Federal Court Sides with Biden’s Eviction Moratorium, for Now

Eviction Notice

A federal judge in Washington, D.C., ruled Friday against a challenge to President Joe Biden’s latest eviction moratorium.

U.S. District Judge Dabney Friedrich denied a request from the Alabama and Georgia association of Realtors to overturn an eviction moratorium from the U.S. Centers for Disease Control and Prevention. The 60-day order bans landlords from evicting tenants, even if they do not pay rent, citing concerns over the spread of COVID-19.

“About half of all housing providers are mom-and-pop operators, and without rental income, they cannot pay their own bills or maintain their properties,” National Association of Realtors President Charlie Oppler said. “NAR has always advocated the best solution for all parties was rental assistance paid directly to housing providers to cover the rent and utilities of any vulnerable tenants during the pandemic. No housing provider wants to evict a tenant and considers it only as a last resort.”

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Commentary: Don’t Be Fooled by the Bipartisan, ‘Paid For’ Infrastructure Bill

Capitol building looking up, blue sky in background

Over the course of the pandemic, federal overspending has exploded even by Congress’s lofty standards. While trillion-dollar deficits were a cause for concern before 2020, spending over just the last two years is set to increase the national debt by over $6 trillion. It’s bizarre, then, that the only thing that members of opposing parties in Congress can seem to work together on is fooling the budgetary scorekeepers with phantom offsets for even more spending.

In total, the bipartisan infrastructure deal includes around $550 billion in new federal spending on infrastructure to take place over five years. Advocates of the legislation claim that it is paid for, but they are relying on gimmicks and quirks of the budget scoring process to make that claim.

Take the single biggest offset claimed — repurposing unused COVID relief funds, which the bill’s authors say would “raise” $210 billion (particularly considering that at least $160 billion have already been accounted for in the Congressional Budget Office (CBO) baseline). Only in the minds of Washington legislators does this represent funds ready to be used when the national debt stands at over $28 trillion.

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Senate Fails to Wrap Up Infrastructure Bill After Talks to Expedite Process Collapse

Senate Majority Leader Chuck Schumer set up a critical vote on the bipartisan infrastructure bill Saturday after talks to expedite the process fell apart late Thursday.

Both Republicans and Democrats engaged in marathon talks Thursday in a bid to vote on a package of amendments and to advance the sweeping public works package. Doing so, however, required approval from all 100 senators, and Tennessee Republican Sen. Bill Haggerty refused to go along even as his Republican colleagues urged him to do so.

In a statement, Hagerty attributed his objection to  the Congressional Budget Office’s estimation that the bill would add $256 billion to the national debt over 10 years.

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Newt Gingrich Commentary: The Higher Inflation and Bigger Debt Act

United States currency

The $3.5 trillion spending bill set up to follow the $1.1 trillion infrastructure bill (which has little to do with infrastructure) should be called what it really is: The Higher Inflation and Bigger Debt Act.

The Democrats would like you to believe it is only a reconciliation bill. This is vital to them because a reconciliation bill only takes 50 senators and the vice president to pass the U.S. Senate.

However, this additional $3.5 trillion comes after trillions of emergency spending prompted by the COVID-19 pandemic. Consider what the Congressional Budget Office has written about the fiscal situation before the $1.1 trillion and $3.5 trillion bills are passed:

Here is what the Congressional Budget Office forecasts (not counting Biden’s enormous spending plan): 

“By the end of 2021, federal debt held by the public is projected to equal 102 percent of GDP. Debt would reach 107 percent of GDP (surpassing its historical high) in 2031 and would almost double to 202 percent of GDP by 2051. Debt that is high and rising as a percentage of GDP boosts federal and private borrowing costs, slows the growth of economic output, and increases interest payments abroad. A growing debt burden could increase the risk of a fiscal crisis and higher inflation as well as undermine confidence in the U.S. dollar, making it more costly to finance public and private activity in international markets.”

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U.S. Set to Hit Debt Ceiling Within Four Months, Congressional Budget Office Estimates

The federal government is on track to reach the statutory debt limit in the fall, which would trigger a government shutdown, according to a Congressional Budget Office (CBO) estimate.

The U.S. is projected to reach the debt ceiling of $28.5 trillion by October or November, a CBO report released Wednesday stated. If Capitol Hill lawmakers don’t reach an agreement on raising the limit higher, the government could undergo its third shutdown in less than four years.

“If the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November,” the CBO report said.

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Over 100 Countries Agree to Back Global Minimum Corporate Tax

A view of the North entrance of the U.S. Treasury Building in Washington D.C.

A total of 130 nations representing more than 90 percent of global GDP have agreed to a global minimum corporate tax, Treasury Secretary Janet Yellen announced Thursday.

The tax, proposed by Yellen and the Biden administration during the G7 conference, would establish a minimum corporate tax rate across all participating countries to prevent corporations from avoiding taxes by incorporating offshore, according to Barron’s. The plan is also intended to prevent countries from competitively lowering their tax rates to attract investment, according to a Treasury Department statement.

“For decades, the United States has participated in a self-defeating international tax competition, lowering our corporate tax rates only to watch other nations lower theirs in response,” Yellen said in the statement.

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Commentary: It is Time to Fight for the Rights of Independent Businesses

As a very young man, I was fortunate enough to start my own company out of my apartment using a small amount of investment capital from friends and family. Over time, that business grew to have over 6,000 employees and revenues in excess of $2 billion. Over nearly a 40-year span, my team and I built what some would consider a remarkable track record, as measured by both sales and profits.

Because of my experience growing that business, I feel a special kinship with small, privately owned businesses and their owners. I also come from a middle-class background, one that shaped me into the person I am today. It is through both the lens of entrepreneur and member of the middle-class that I look through when reflecting upon this Independence Day.

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Commentary: Making Sense of the Post-Pandemic Economy

Guy on phone with stocks on computer screen

Are you having a hard time understanding why the housing market is heating up, and why the cost of essentials such as milk, eggs, and gas is climbing? Are you in the market for a used car? Then you know how expensive those are right now. And why can’t businesses find employees, yet millions remain unemployed? Economists agree the recovery isn’t like anything we’ve seen before. That’s because we’ve never had a situation before where the heavy hand of government shut down private enterprises on a nationwide scale. The market distortions are enormous. As states reopen, there is a herky-jerky feel to the economy that has many people unsettled.

Former Federal Reserve vice chairman Alan Blinder wrote in the Wall Street Journal recently, “the recovery is not linear. Rather, it is proceeding in fits and starts. Sales of physical goods, for example, dipped only briefly when Covid hit, recovered quickly, and are now well above their pre-pandemic levels. In stark contrast, businesses that deliver personal services, such as restaurants and hotels, suffered a devastating depression and are still below their pre-pandemic levels.”

By far the most uneven outcome so far since the economy crashed in spring 2000, besides the 7.6 million fewer jobs compared to pre-pandemic levels, has been inflation, which is up 5 percent the past 12 months.

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Commentary: Tax All Foundations and Endowments Now

Yale University

If there were trillions of dollars socked away in convenient vehicles to avoid taxes and benefit the ultra-elite should we not tax them? Are they not fair game in a just system of taxation, where the little guy and the middle class have to pay up—or else? 

The largest endowments, mainly universities indoctrinating students in social justice, wokeism, and class warfare, pay absolutely no taxes. 

The big foundations, promoting radical left-wing activism, likewise pay no taxes. 

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Commentary: New York and New Jersey Are Among the Top 10 States Where Residents Pay the Highest Lifetime Taxes

Tax withholding forms

In the mood for a depressing statistic? A new report from the financial services firm Self concludes that the average American will pay an astounding $525,037 in taxes over their lifetime—roughly 34 percent of their lifetime earnings. 

But the numbers aren’t uniform across the country; they vary wildly from state to state. Based on taxes on earnings, spending, property, and cars, here are the 10 states where residents pay the highest taxes over a lifetime.

1. New Jersey

Topping the list is New Jersey, where residents will, on average, owe an astounding $932,000 in taxes over their lifetime. That’s nearly 50 percent of their typical lifetime earnings!

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Biden Administration Proposes ‘More Realistic’ 15 Percent Global Corporate Tax Rate

President Joe Biden and Vice President Kamala Harris, joined by White House staff, participate in a virtual bilateral meeting with Canadian Prime Minister Justin Trudeau on Tuesday, Feb. 23, 2021, in the Roosevelt Room of the White House. (Official White House Photo by Adam Schultz)

The Biden administration proposed a minimum global corporate tax rate of 15%, but said it hoped world leaders would negotiate a more “ambitious” minimum rate.

Treasury Department officials proposed the 15% minimum corporate tax rate during an Organization for Economic Cooperation and Development (OECD) meeting on taxation Thursday. The meeting marked the initial discussions over a global minimum rate between nations after the Treasury Department had previously pushed for such a tax to stop the global “race to the bottom.”

“Treasury proposed to the Steering Group that the global minimum tax rate should be at least 15%,” the department said in a statement Thursday. “Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher.”

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Commentary: Biden’s Capital Gains Tax Plans Are a Lose-Lose Proposition

There will always be munis. Income from municipal bonds typically enjoys tax-free status at the federal level and in the issuing state. Conversely, when investors put wealth to work in a startup, private corporation, or public company, they face a capital gains tax penalty if their investment bears fruit. If a home run, that penalty becomes enormous.

Imagine that. Investors who subsidize the growth of government largely avoid taxation. But if they back an innovative corporation, or rush a distant future into the present through an intrepid investment with a visionary entrepreneur, a major IRS bill awaits.

Worse, the cost of prescient investing may soon increase. Seemingly in a bid to placate his ravenous left flank, President Biden has announced a proposal to nearly double the federal penalties on savings and investment to 43.8%.

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Commentary: Taxing Workers for Staying Home Is a Policy Rooted in Envy

Ever since the beginning of the pandemic, working from home is the new normal.

In 2018, just 5.4 percent of the US’s working population worked remotely. By mid-2020, it had turned into reality for 56 percent of the workforce. While not all workers forced to stay home were quick to welcome the change, many learned to enjoy it over time. With state governments beginning another round of lockdowns, it isn’t shocking to see many companies choosing to carry on with remote work.

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Hunter Biden Says He’s Being Investigated for Possible Tax Crimes

Federal prosecutors in Delaware are investigating Hunter Biden for potential tax crimes, he said in a statement issued Wednesday through his father’s presidential transition team.

“I learned yesterday for the first time that the U.S. Attorney’s Office in Delaware advised my legal counsel, also yesterday, that they are investigating my tax affairs,” Biden said in the statement.

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Biden Pledges to Hike Taxes to Bush Administration Levels

President-elect Joe Biden in a Wednesday interview said “there’s no reason why” his administration shouldn’t raise both corporate and individual income taxes to levels maintained during former president George Bush’s administration.

Biden insisted “everybody pairs their fair share” in taxes during his presidency, and suggested a nearly 40% rate for those in the top bracket, which he said was commonplace during the Bush era, in an interview with the New York Times.

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Biden’s Gun Registration Tax Could Cost Firearms Owners Billions

President-elect Joe Biden’s proposed firearm tax could cost gun owners upwards of $30 billion to keep the weapons they already possess, according to The Washington Free Beacon.

Biden plans to mandate both taxation and registration of so-called “assault weapons” and high-capacity magazines under the National Firearms Act (NFA), which requires a $200 fee per item, according to the former vice president’s campaign website. Around 20 million rifles and 150 million magazines would be taxable, leading to a total cost to U.S. gun owners of over $34 billion, according to the Free Beacon.

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Court Ruling Allows Ohio Small Businesses to File Single Local Tax Return

An Ohio Supreme Court ruling should help small business owners cut through government bureaucracy and save time and money, according to a Central Ohio think tank.

The ruling, which could allow small businesses to file a single local income tax return, is a step in the right direction for small businesses throughout the state, according Greg R. Lawson, a research fellow at The Buckeye Institute.

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Reports: Biden’s Tax Plan Would Increase Taxes Across the Board, Estimates Vary by How Much

Democratic presidential candidate Joe Biden’s proposed tax increases of nearly $4 trillion over the next 10 years, if passed, “would be the highest in American history – indeed, in world history,” an analysis of his plan determined.

Lew Uhler, founder and chairman of the National Tax Limitation Committee and National Tax Limitation Foundation (NTLF), and Peter Ferrara a senior policy adviser to NTLF, made that conclusion in a new report published by The Hill.

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Commentary: Tariff Hawks Got It All Wrong When They Predicted ‘Another Great Depression’ from Trump’s America-First Trade Policies

Donald Trump

by Robert Romano   In 2016, when President Donald Trump ran on his America first trade agenda, much of the conventional wisdom was that, if implemented, his tariffs would wreck the U.S. economy. It would have the same impact as the 1930 Smoot-Hawley Act, and so the prediction goes, lead to…

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Federal Regulations Amount to a $15,000 ‘Hidden Tax’ on Families, Report Finds

by Michael Bastasch   The federal regulatory apparatus imposed a roughly $14,600 “hidden tax” on American households last year, according to a new report by the Competitive Enterprise Institute (CEI). “That amounts to 20 percent of the average pretax income of $73,573, and 24 percent of the average expenditure budget…

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Conference Committees Meet to Hash Out Tax, Spending Increases in Minnesota Budgets

by Bethany Blankley   With 17 days to go before the end of session, legislative conference committees began meeting Friday to hash out differing proposals for three of the most contentious omnibus bills yet to be voted on by the full Legislature. The Omnibus tax bill, Omnibus Health and Human Services…

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Lawmakers Eye a Huge Backdoor Spending Increase

US Capitol

by David Ditch   Members of Congress are promoting the concept of changing three programs from the discretionary category (requiring annual appropriations) into mandatory (auto-pilot) spending. Such changes would become a huge backdoor spending increase. Spending limits have come under relentless attack from both parties. In 2013, 2015, and 2018,…

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Ohio Joint Legislative Committee Fails to Reach Compromise on Gas Tax Hike

Thursday’s joint committee meeting to find a compromise on the controversial gas tax hike appears to have ended inconclusively. As previously reported, the gas tax hike has proved an extremely divisive start to the legislative calendar.  Currently, House Bill 62 (HB 62), the 2020-21 Ohio Transportation Budget, the first major bill…

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Buckeye Institute Blasts Tax Hike, Warns Legislators: ‘Don’t Increase the Tax Burden on Ohioans!’

A joint committee of the Ohio House of Representatives and Senate was convened Wednesday in the hopes of reconciling the major divides in their respective transportation budgets. As they work towards a solution, one state think tank is reminding them not to forget the consequences Ohio citizens will face as a result…

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Former California GOP Chairman Lists Nine Ways America Is Moving Towards Socialism

by Nick Givas   Former California GOP Chairman Tom Del Beccaro listed nine ways in which America is moving towards socialism during an appearance on “Fox & Friends” Monday. Del Beccaro said increased government spending and inflated tax codes are just the beginning and claimed they’ll have a domino effect on…

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Rick Manning Commentary: President Trump Versus Washington’s Spending and the Constituencies Who Fight for Them

by Rick Manning   In Washington, D.C., every spending program and tax break has a constituency that fights for it.  This is why they exist, because somewhere, someone believes that Warren Buffett needs a wind production tax credit, and that opera programming should be taxpayer funded. These constituencies are tightly…

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Americans for Tax Reform Urges Ohio to Reject ‘Straight-Up’ Gas Tax Increase

Grover Norquist, President and Founder of the nationally recognized Conservative taxpayer advocacy group Americans for Tax Reform (ATR), implored Ohioans Friday to reject the “straight up” gas tax currently being considered by the Ohio Legislature. In an open letter, Norquist warned; A gas tax hike does the greatest harm to households who…

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Federalism Committee Chair John Becker Gauges Gas Tax as Ohio Statehouse Battle Ignites

COLUMBUS, Ohio — The battle over a gas tax increase has officially kicked off in the Ohio Statehouse. Since taking office, Ohio Republican Gov. Mike DeWine has insisted that a gas tax was critically necessary to preserving and repairing the state’s decaying roads and bridges. Though many in the state on both…

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Columbus Democratic Mayor Backs Governor DeWine’s Gas Tax

COLUMBUS, Ohio– In a statement made via a Facebook Video, Columbus, Ohio’s Democratic Mayor Andrew J. Ginther announced that he is backing DeWine’s 18 cent gas tax hike. The mayor said he is backing the bill because: It will help us increase our funding for infrastructure in Columbus neighborhoods by 19 million a year.…

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Report: Returning State Tax Surplus to Ohioans Could Create 2,100 New Jobs

The Buckeye Institute, an established think tank based in Ohio, has released its latest economic report, assessing the current state of economic affairs in Ohio and making recommendations to improve the overall financial health of the state. In the report, The Buckeye Institute discovered that the current state budget surplus could create…

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Governor’s Committee on Road Repair Issues Report: Gas Tax Hike for Ohio

Ohio Gov. Mike DeWine’s hand-picked Advisory Committee on Transportation has issued its final report on how best to address the deteriorating condition of Ohio’s roads and bridges. As early reports suggested, a gas tax hike is their only solution. The 15 member panel agreed that raising taxes on the price of…

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Governor DeWine Accelerates Gas Tax Planning with No Limits Set

It’s safe to say that when Ohio Governor Mike DeWine appointed his “Governor’s Advisory Committee on Transportation” to develop solutions for paying for road and bridge repairs, citizens were hoping they’d come up was some creative answers. Instead, the committee reached a consensus last week that the primary means by which…

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DeWine Appointed Committee Recommends Gas Tax Hike for Ohio

After two meetings and two hours of public testimony, the Governor’s Advisory Committee on Transportation has, so far, agreed on only one thing to save Ohio’s roads and bridges: raise taxes. As previously reported, the committee was officially launched on January 31st. Hand-picked by Governor Mike DeWine, the bipartisan committee of industry…

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Macron Bails on Climate Summit as France Melts Down Over High Gas Taxes

by Chris White   French President Emmanuel Macron made his way back to France Sunday as protesters turn the streets of Paris upside down over sky-high gas taxes designed to fight global warming. Officials are considering declaring a state of emergency to deal with the unrest. Macron returned from his trip in…

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How the 1851 Center for Constitutional Law Chose Its Name and Why It Matters to Ohioans

Maurice Thompson

Ohio entered the Union in 1803 as America’s 17th state and — as has been routine practice for freshly-added states — Ohio established a state constitution by which to govern itself in harmony with the U.S. Constitution.  For decades, things generally seemed to function well. But by 1851, Ohioans began…

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House Votes Overwhelmingly To Kill Obamacare’s Tax On Medical Devices

Obamacare

by Julia Cohen   A bipartisan majority in the House voted to repeal President Barack Obama’s 2.3 percent medical device tax Tuesday. The repeal passed 283-132, with 57 Democrats and all but one Republican voting in favor. North Carolina Republican Rep. Walter Jones was the sole Republican against the bill. “Minnesota’s innovators can breathe…

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Republicans Unveil Tax Cuts Round Two On The Same Day Progressives Release Plan For Tax Increases

Steve Scalise

by Julia Cohen   House Republicans announced they are working on a second iteration of tax cuts on Tuesday, the same day the Congressional Progressive Caucus announced a proposal for raising taxes. “The tax cuts have been working incredibly well to get this economy moving, to create more jobs, to…

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Just Facts Think Tank President: The True Effects of Regulations on the Economy

by James D. Agresti   In a New York Times article about President Trump scaling back regulations, reporters Binyamin Appelbaum and Jim Tankersley report “there is little historical evidence tying regulation levels to” economic growth. They support this sweeping claim only with a quote from Jared Bernstein, a former chief economic adviser to…

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