Latest news with #RonEstes
Yahoo
14 hours ago
- Business
- Yahoo
Tell Kansas' senators not to give ultra-wealthy a ‘Big Beautiful' tax loophole
'I want a big beautiful yacht! Sell that $10 million stock I bought for $6 million — woo hoo! What? You want me to donate it to a private school voucher program? Nope, I don't believe in those. A tax loophole? OK, well, donate it to children's cancer research instead. What do you mean that won't work?' How's that for a fun new federal tax scam to help the super-wealthy? 'Donate' $10 million in stock to charity, purchased for $6 million — then get all $10 million back in tax credits and avoid more than $1 million in capital gains taxes. Massive benefits for already rich individuals — you gotta love it. And it's all created by House Resolution 1 in Congress — the 'One Big Beautiful Bill Act.' Kansas Reps. Ron Estes, Tracey Mann and Derek Schmidt all voted yes for it. Who benefits from these 'donations'? Farmers devastated by drought? Disabled veterans? Your cherished cause? No. At best, you net a maximum tax benefit of 35 cents per dollar. Donating that $10 million to any other cause would likely net a just $3.5 million tax benefit, not enough for that $10 million yacht. The 'dollar for dollar plus' tax scheme was cooked up for nonprofits known as Scholarship Granting Organizations, for private school vouchers only, such as Renewanation, a Virginia-based SGO operating in Kansas, whose mission is to promote the 'Christian worldview.' If your donations go to one of these entities, you get back everything you put in as tax credits, plus you skirt the capital gains tax. Rep. Estes, whose constituent Charles Koch could have profited $2.4 million from this loophole, voted no on an amendment to end it. Koch's state Rep. Susan Estes, supports Senate Bill 87, another expansion of the Kansas voucher program, which attempted to make the state tax credit equal to 100% of voucher donations, and create three new categories of eligibility with no income limits at all. The federal voucher would benefit families with incomes at or below 300% of the area's median income. In Johnson County, this includes families earning over $320,000, based on 2023 data. The Wichita Diocese, in the Estes' districts, operates the only Catholic schools in the country that charge no tuition, doing so successfully for 28 years before private schools came to the Legislature to siphon tax revenue. Since 2014, these schools have received $9.7 million of the $32 million that could have funded other state priorities, such as public safety, agriculture and the Intellectual/Developmental Disability waitlist. Why aren't we promoting the Wichita stewardship model instead of funding private schools using public funds with no accountability? Evidence shows we shouldn't support vouchers at all. More than 60 of 105 Kansas counties don't have private schools. Those that pop up in response to vouchers have a terrible track record of student learning losses. Elite private schools parents dream of can still deny any child admission for any reason they want. Vouchers overwhelmingly benefit students already enrolled in private schools (92% in Oklahoma), and raise tuition at private schools (21-58% in Iowa), keeping them out of reach for low-income families, even with the voucher. One Big Beautiful Bill creates one big beautiful windfall for one type of charitable contribution, unavailable for any other cause — wildly unprecedented cronyism in the federal tax code. Whether the ultra-wealthy agree with vouchers or not, their accountants would be absolutely negligent in their fiduciary responsibility if they don't recommend this profitable way to liquidate appreciated stocks. Research from the 501(c)(3) nonprofit Institute on Taxation and Economic Policy notes it harnesses 'wealthy families' interest in tax avoidance and personal profit as a means of bolstering private schools at the expense of public budgets' — to the tune of $26 billion of federal and state dollars over the next 10 years if capped. Sen. Ted Cruz of Texas wants no cap. Angry? Me, too. Tell Kansas Sens. Jerry Moran and Roger Marshall — and Sens. Josh Hawley and Eric Schmitt in Missouri — to vote no on this egregious tax scheme for the super-wealthy. Perhaps suggest that they fund special education at the full level in the Individuals with Disabilities Education Act instead? Mari-Lynn Poskin represents District 20 in the Kansas House of Representatives.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Trump's new tax bill contains ‘sledgehammer' to hit back against foreign digital taxes
U.S. President Donald Trump would have the power to retaliate against countries that impose special digital service taxes on large U.S. technology companies like Amazon AMZN-T and Alphabet GOOG-Q, under a provision in the sweeping tax bill that Congress is considering. 'If foreign countries want to come in the United States and tax US businesses, then those foreign-based businesses ought to be taxed as well,' said Rep. Ron Estes, a Kansas Republican who helped craft the provision. Some 17 countries in Europe and others around the world impose or have announced such taxes on U.S. tech products like Meta's META-Q Instagram. Germany announced on Thursday it was considering a 10% tax on platforms like Google. Canadian business groups press Ottawa on digital tax as U.S. bill targets investors Trump signs memo to impose retaliatory tariffs for digital taxes The levies have drawn bipartisan ire in Washington. Democrats who oppose much of the tax bill have not spoken out against the retaliatory tax provision, found in Section 899 of the 1,100-page bill. Trump has been pressing foreign countries to lower barriers to U.S. commerce. Under the bill, Congress would empower his administration to impose tax hikes on foreign residents and companies that do business in the U.S. The U.S. Constitution gives Congress, not the president, the power to decide on taxes and spending. The provision could raise $116 billion over the next decade, according to the Joint Committee on Taxation. But some experts warned that an unintended consequence of retaliatory taxes could be less foreign investment in the U.S. 'This new Section 899 provision brings a sledgehammer to the idea that the United States will allow itself to be characterized as a tax haven by anyone,' said Peter Roskam, former Republican congressman and head of law firm Baker Hostetler's federal policy team. The House of Representatives narrowly passed the bill on May 22, and it now heads to the Senate. Democrats broadly oppose the Republicans' tax and spending bill, which advances many of Trump's top priorities such as an immigration crackdown, extending Trump's 2017 tax cuts and ending some green energy incentives. Section 899 would allow the Treasury Department to label the foreign tech taxes 'unfair' and place the country in question on a list of 'discriminatory foreign countries.' Some other foreign taxes also would be subject to scrutiny. Once on the list, a country's individuals and its companies that operate in the U.S. could face stiffer tax rates that could increase each year, up to 20 percentage points. Joseph Wang, chief investment officer at Monetary Macro, said Section 899 could help Trump reduce trade imbalances because if foreign investment decreases it could depreciate the U.S. dollar. This in turn could spur exports of U.S. products by making them cheaper overseas. Portfolio interest would remain exempt from any tax Trump imposes, but some experts cautioned that taxing foreigners could quell foreign investment in the U.S. 'Foreign investors may change their behaviour to avoid the taxes in various ways, including potentially by simply investing elsewhere,' said Duncan Hardell, an adviser at New York University's Tax Law Center. Wall Street analysts also predict this tax provision could pick a fight over foreign capital. The new approach follows the 15% minimum global corporate tax deal negotiated by the administration of Democratic former President Joe Biden. Republicans, led by Rep. Jason Smith of Missouri, chairman of the House tax committee, opposed that approach, arguing it unfairly benefits Chinese companies. Foreign countries have invoked that global minimum to slap higher taxes on U.S. tech firms, if they concluded that generous U.S. tax credits for research and development pushed their tax burden below that 15% threshold. Trump in February directed his administration to combat foreign digital taxes, but they were not addressed in the trade deal announced in May between the U.S. and the United Kingdom, which imposes a 2% levy on foreign digital services. It was unclear if the Treasury Department would actually use the new authority if it becomes law, or if the mere threat of action would convince other countries to change course. The department did not share its intended strategy when asked.
Zawya
3 days ago
- Business
- Zawya
Tax bill contains 'sledgehammer' for Trump to retaliate against foreign digital taxes
U.S. President Donald Trump would have the power to retaliate against countries that impose special digital service taxes on large U.S. technology companies like Amazon and Alphabet, under a provision in the sweeping tax bill that Congress is considering. "If foreign countries want to come in the United States and tax US businesses, then those foreign-based businesses ought to be taxed as well," said Representative Ron Estes, a Kansas Republican who helped craft the provision. Some 17 countries in Europe and others around the world impose or have announced such taxes on U.S. tech products like Meta's Instagram. Germany announced on Thursday it was considering a 10% tax on platforms like Google. The levies have drawn bipartisan ire in Washington. Democrats who oppose much of the tax bill have not spoken out against the retaliatory tax provision, found in Section 899 of the 1,100-page bill. Trump has been pressing foreign countries to lower barriers to U.S. commerce. Under the bill, Congress would empower his administration to impose tax hikes on foreign residents and companies that do business in the U.S. The U.S. Constitution gives Congress, not the president, the power to decide on taxes and spending. The provision could raise $116 billion over the next decade, according to the Joint Committee on Taxation. But some experts warned that an unintended consequence of retaliatory taxes could be less foreign investment in the U.S. "This new Section 899 provision brings a sledgehammer to the idea that the United States will allow itself to be characterized as a tax haven by anyone," said Peter Roskam, former Republican congressman and head of law firm Baker Hostetler's federal policy team. The House of Representatives narrowly passed the bill on May 22, and it now heads to the Senate. Democrats broadly oppose the Republicans' tax and spending bill, which advances many of Trump's top priorities such as an immigration crackdown, extending Trump's 2017 tax cuts and ending some green energy incentives. Section 899 would allow the Treasury Department to label the foreign tech taxes "unfair" and place the country in question on a list of "discriminatory foreign countries." Some other foreign taxes also would be subject to scrutiny. Once on the list, a country's individuals and its companies that operate in the U.S. could face stiffer tax rates that could increase each year, up to 20 percentage points. Joseph Wang, chief investment officer at Monetary Macro, said Section 899 could help Trump reduce trade imbalances because if foreign investment decreases it could depreciate the U.S. dollar. This in turn could spur exports of U.S. products by making them cheaper overseas. Portfolio interest would remain exempt from any tax Trump imposes, but some experts cautioned that taxing foreigners could quell foreign investment in the U.S. "Foreign investors may change their behavior to avoid the taxes in various ways, including potentially by simply investing elsewhere," said Duncan Hardell, an advisor at New York University's Tax Law Center. PUSH BACK TO GLOBAL MINIMUM TAX The new approach follows the 15% minimum global corporate tax deal negotiated by the administration of Democratic former President Joe Biden. Republicans, led by Representative Jason Smith of Missouri, chairman of the House tax committee, opposed that approach, arguing it unfairly benefits Chinese companies. Foreign countries have invoked that global minimum to slap higher taxes on U.S. tech firms, if they concluded that generous U.S. tax credits for research and development pushed their tax burden below that 15% threshold. Trump in February directed his administration to combat foreign digital taxes, but they were not addressed in the trade deal announced in May between the U.S. and the United Kingdom, which imposes a 2% levy on foreign digital services. It was unclear if the Treasury Department would actually use the new authority if it becomes law, or if the mere threat of action would convince other countries to change course. The department did not share its intended strategy when asked.
CNA
3 days ago
- Business
- CNA
Tax bill contains 'sledgehammer' for Trump to retaliate against foreign digital taxes
WASHINGTON :U.S. President Donald Trump would have the power to retaliate against countries that impose special digital service taxes on large U.S. technology companies like Amazon and Alphabet, under a provision in the sweeping tax bill that Congress is considering. "If foreign countries want to come in the United States and tax US businesses, then those foreign-based businesses ought to be taxed as well," said Representative Ron Estes, a Kansas Republican who helped craft the provision. Some 17 countries in Europe and others around the world impose or have announced such taxes on U.S. tech products like Meta's Instagram. Germany announced on Thursday it was considering a 10 per cent tax on platforms like Google. The levies have drawn bipartisan ire in Washington. Democrats who oppose much of the tax bill have not spoken out against the retaliatory tax provision, found in Section 899 of the 1,100-page bill. Trump has been pressing foreign countries to lower barriers to U.S. commerce. Under the bill, Congress would empower his administration to impose tax hikes on foreign residents and companies that do business in the U.S. The U.S. Constitution gives Congress, not the president, the power to decide on taxes and spending. The provision could raise $116 billion over the next decade, according to the Joint Committee on Taxation. But some experts warned that an unintended consequence of retaliatory taxes could be less foreign investment in the U.S. "This new Section 899 provision brings a sledgehammer to the idea that the United States will allow itself to be characterized as a tax haven by anyone," said Peter Roskam, former Republican congressman and head of law firm Baker Hostetler's federal policy team. The House of Representatives narrowly passed the bill on May 22, and it now heads to the Senate. Democrats broadly oppose the Republicans' tax and spending bill, which advances many of Trump's top priorities such as an immigration crackdown, extending Trump's 2017 tax cuts and ending some green energy incentives. Section 899 would allow the Treasury Department to label the foreign tech taxes "unfair" and place the country in question on a list of "discriminatory foreign countries." Some other foreign taxes also would be subject to scrutiny. Once on the list, a country's individuals and its companies that operate in the U.S. could face stiffer tax rates that could increase each year, up to 20 per centage points. Joseph Wang, chief investment officer at Monetary Macro, said Section 899 could help Trump reduce trade imbalances because if foreign investment decreases it could depreciate the U.S. dollar. This in turn could spur exports of U.S. products by making them cheaper overseas. Portfolio interest would remain exempt from any tax Trump imposes, but some experts cautioned that taxing foreigners could quell foreign investment in the U.S. "Foreign investors may change their behavior to avoid the taxes in various ways, including potentially by simply investing elsewhere," said Duncan Hardell, an advisor at New York University's Tax Law Center. PUSH BACK TO GLOBAL MINIMUM TAX The new approach follows the 15 per cent minimum global corporate tax deal negotiated by the administration of Democratic former President Joe Biden. Republicans, led by Representative Jason Smith of Missouri, chairman of the House tax committee, opposed that approach, arguing it unfairly benefits Chinese companies. Foreign countries have invoked that global minimum to slap higher taxes on U.S. tech firms, if they concluded that generous U.S. tax credits for research and development pushed their tax burden below that 15 per cent threshold. Trump in February directed his administration to combat foreign digital taxes, but they were not addressed in the trade deal announced in May between the U.S. and the United Kingdom, which imposes a 2 per cent levy on foreign digital services. It was unclear if the Treasury Department would actually use the new authority if it becomes law, or if the mere threat of action would convince other countries to change course. The department did not share its intended strategy when asked.
Reuters
3 days ago
- Business
- Reuters
Tax bill contains 'sledgehammer' for Trump to retaliate against foreign digital taxes
WASHINGTON, May 30 (Reuters) - U.S. President Donald Trump would have the power to retaliate against countries that impose special digital service taxes on large U.S. technology companies like Amazon and Alphabet, under a provision in the sweeping tax bill that Congress is considering. "If foreign countries want to come in the United States and tax US businesses, then those foreign-based businesses ought to be taxed as well," said Representative Ron Estes, a Kansas Republican who helped craft the provision. Some 17 countries in Europe and others around the world impose or have announced such taxes on U.S. tech products like Meta's Instagram. Germany announced on Thursday it was considering a 10% tax on platforms like Google. The levies have drawn bipartisan ire in Washington. Democrats who oppose much of the tax bill have not spoken out against the retaliatory tax provision, found in Section 899 of the 1,100-page bill. Trump has been pressing foreign countries to lower barriers to U.S. commerce. Under the bill, Congress would empower his administration to impose tax hikes on foreign residents and companies that do business in the U.S. The U.S. Constitution gives Congress, not the president, the power to decide on taxes and spending. The provision could raise $116 billion over the next decade, according to the Joint Committee on Taxation. But some experts warned that an unintended consequence of retaliatory taxes could be less foreign investment in the U.S. "This new Section 899 provision brings a sledgehammer to the idea that the United States will allow itself to be characterized as a tax haven by anyone," said Peter Roskam, former Republican congressman and head of law firm Baker Hostetler's federal policy team. The House of Representatives narrowly passed the bill on May 22, and it now heads to the Senate. Democrats broadly oppose the Republicans' tax and spending bill, which advances many of Trump's top priorities such as an immigration crackdown, extending Trump's 2017 tax cuts and ending some green energy incentives. Section 899 would allow the Treasury Department to label the foreign tech taxes "unfair" and place the country in question on a list of "discriminatory foreign countries." Some other foreign taxes also would be subject to scrutiny. Once on the list, a country's individuals and its companies that operate in the U.S. could face stiffer tax rates that could increase each year, up to 20 percentage points. Joseph Wang, chief investment officer at Monetary Macro, said Section 899 could help Trump reduce trade imbalances because if foreign investment decreases it could depreciate the U.S. dollar. This in turn could spur exports of U.S. products by making them cheaper overseas. Portfolio interest would remain exempt from any tax Trump imposes, but some experts cautioned that taxing foreigners could quell foreign investment in the U.S. "Foreign investors may change their behavior to avoid the taxes in various ways, including potentially by simply investing elsewhere," said Duncan Hardell, an advisor at New York University's Tax Law Center. The new approach follows the 15% minimum global corporate tax deal negotiated by the administration of Democratic former President Joe Biden. Republicans, led by Representative Jason Smith of Missouri, chairman of the House tax committee, opposed that approach, arguing it unfairly benefits Chinese companies. Foreign countries, opens new tab have invoked that global minimum to slap higher taxes on U.S. tech firms, if they concluded that generous U.S. tax credits for research and development pushed their tax burden below that 15% threshold. Trump in February directed his administration to combat foreign digital taxes, but they were not addressed in the trade deal announced in May between the U.S. and the United Kingdom, which imposes a 2% levy on foreign digital services. It was unclear if the Treasury Department would actually use the new authority if it becomes law, or if the mere threat of action would convince other countries to change course. The department did not share its intended strategy when asked.
