Latest news with #taxReform
Daily Mail
3 days ago
- Business
- Daily Mail
Anthony Albanese dodges huge tax question every Aussie wants answered after Treasury accidentally released secret advice telling the PM to raise it
Anthony Albanese has refused to say whether or not he will raise taxes after Treasury advised a hike to fix the federal Budget deficit. Insiders host David Speers grilled the prime minister on the topic on Sunday following revelations Treasury had made the suggestion. In an extraordinary blunder, bureaucrats mistakenly released parts of a secret briefing document given to the incoming Labor government in response to an ABC Freedom of Information request. In the briefing notes, officials told Treasurer Jim Chalmers that 'tax should be raised as part of broader tax reform' to make the federal Budget 'sustainable' as Treasury forecasts years of Budget deficits. The officials suggested the government 'build on' its superannuation tax and raise 'indirect taxes', such as those on alcohol and tobacco, with personal income taxes now making up more than half of Commonwealth revenue. 'Is Treasury right? Do we need to increase the tax take?' Speers asked Albanese. 'Well, what we need to do is to make sure that our tax system is fair, and we will always do that,' the prime minister replied. Speers repeated his question, before Albanese avoided answering for a second time. 'Well, what we need to do is get fiscal policy right,' he said. Speers asked what that meant for voters, and if it directly translated to increasing the total amount of taxation. 'What it means is what we've done, which is we produced two budget surpluses and we've reduced the budget deficit going forward, compared with what it was anticipated to be before we were elected,' Albanese said. The prime minister reasoned Treasury advice was not government policy, and said he encouraged departments to put forward their advice. He said his Labor government would keep a close eye on the budget and 'be responsible'. 'But surely you have an idea, as to when you look at the budget, whether you agree that tax needs to go up and spending needs to go down to fix it?' Speers asked a third time 'What I agree to is what we do in the Expenditure Review Committee, that's already begun meeting... [and] examine each policy to make sure that there's value for money,' Albanese said. He also said other policies like his superannuation tax changes would 'come in time'. The Treasury advice was accidentally provided to the ABC along with other documents in response to a Freedom of Information request. While the document featured the typical redactions, a Treasury official forgot to black out sensitive headings and subheadings, disclosing secret and politically damaging information. The advice forecast years of budget deficits. Officials suggested the government 'build on' its superannuation tax and raise 'indirect taxes', such as those on alcohol and tobacco, with personal income taxes now making up more than half of Commonwealth revenue. The document also shows officials bluntly told Labor that the party's pledge to build 1.2million homes over five years in response to the housing crisis 'will not be met'. Labor is already seeking to increase taxes on super balances above $3million. Chalmers at the time declined to rule out any new tax hikes ahead of the August economic roundtable.
BBC News
01-07-2025
- Politics
- BBC News
De Sausmarez to be Guernsey's first female chief minister
Deputy Lindsay de Sausmarez has been elected as Guernsey's first female president of the Policy and Resources Committee (P&R). She beat Deputies Jonathan Le Tocq and Mark Helyar in the election after being proposed by Deputy Tina Bury and seconded by Deputy Marc Lainé. She received 22 votes from deputies in a secret ballot to become the island's new chief minister. As part of her pitch for the job she promised to review the island's tax system before the end of the year. De Sausmarez said when it came to issues like the island's population, there needed to be a better approach to policy co-ordination from the States' top committee."We need P&R to do some high level strategic planning, rather than constantly firefighting," she said. In his pitch for the job Deputy Jonathan le Tocq said: "I believe strongly in consensus, not combat and I believe the presidency of policy and resources should be held by someone who can unite, not divide." Former vice-president of P&R Mark Helyar received 11 votes, while Le Tocq got seven. Helyar said as P&R president he would ensure the introduction of GST to stabilise the island's economy. Last year the States agreed to introduce tax reforms including a 5% GST, lower income tax rates for earnings under £30,000 and social security reform, to start in 2027.
Washington Post
30-06-2025
- Business
- Washington Post
Republicans no longer want to repeal estate taxes. That's weird.
Ray D. Madoff is a professor at Boston College Law School and author of the forthcoming 'The Second Estate: How the Tax Code Made an American Aristocracy.' The Trump administration's 'big' tax bill has one curious omission: estate tax repeal. Ending the estate tax has been a signature issue for Republicans since the 1990s. And yet today, with Republicans controlling both Congress and the presidency, there has been hardly a whisper in support of repeal. Instead, the bill has proposed a permanent exemption amount of $15 million per person: a large number, to be sure, but one that does little for the centimillionaires, billionaires and centibillionaires who dominate our world today.
E&E News
29-06-2025
- Business
- E&E News
Republicans add tax on renewables, plan amendment against land sales
The Republicans' latest megabill text includes a new tax on renewable energy companies, beyond rolling back incentives from the Democrats' 2022 climate law. But even though the budget reconciliation legislation also includes language to sell some public lands for housing, the provision may not be around for much longer. The Inflation Reduction Act tax credit and public land proposals are among the most contentious items in the GOP's tax cut, energy and border security spending effort. Advertisement Hours after the Senate Republicans released theirlatest tax plan for the megabill, companies and lawmakers noticed a new tax affecting solar and wind companies. That's on top of stricter rollbacks than senators had floated earlier. The proposed tax would affect projects that don't meet new restrictions on renewable energy produced with parts tied to certain U.S. adversaries like China. 'The new tax could apply to many, if not all, wind and solar projects that start being built from effectively 2028 onward. All new projects would have one of two options: pay the tax or attempt to demonstrate compliance with the material assistance limits,' said Ben King, associate director of climate and energy for the Rhodium Group, a consulting firm. 'The challenge with the latter is that the rules for demonstrating compliance still need to be written, and it's likely to be a process that's onerous bordering on impossible — even if you actually have a manufactured product that would meet the material assistance limits,' King said. It's unclear whether renewable energy supporters in the Senate will try to strip the language when the amendment vote-a-rama begins ahead of final passage. Energy Secretary Chris Wright released a statement in support of the tax provisions. Elon Musk said the bill favored industries of the past. Public lands Sen. Tim Sheehy (R-Mont.) at the Capitol. | Francis Chung/POLITICO Senate Republicans leaders have apparently promised Montana Republican Sen. Tim Sheehy and others an amendment to strip language to sell some public lands for housing. The parliamentarian had yet to say whether the proposal from Energy and Natural Resources Chair Mike Lee (R-Utah) complies with budget reconciliation rules. 'I have just concluded productive discussions with leadership. I will be leading an amendment to strip the sale of public lands from this bill. I will vote yes on the motion to proceed,' Sheehy wrote on social media Saturday. 'We must quickly pass the Big Beautiful Bill to advance President Trump's agenda.' Montana's other Republican senator, Steve Daines, has also trumpeted such an amendment, and both of Idaho's Republican senators have voiced opposition to land sales in reconciliation. Reporters Tim Cama and Garrett Downs contributed.
CNN
27-06-2025
- Business
- CNN
The ‘revenge tax' is dead before it even started
Source: CNN The Treasury Department and Congress on Thursday moved to kill a so-called revenge tax that was set to raise taxes on foreign investment and had spooked Wall Street and global business leaders. Treasury Secretary Scott Bessent on Thursday announced a deal with G7 partners that will exclude US companies from some global taxes in exchange for the US dropping Section 899 from Republican's 'One Big Beautiful Bill Act.' Bessent said in a post on X that he would ask Congress to remove Section 899 from the budget bill. Senator Mike Crapo and Rep. Jason Smith, who co-chair the joint committee on taxation, said in a statement Thursday that following Bessent's request, they would remove Section 899 from the bill. Section 899 was a tax code tucked in to President Donald Trump's budget bill that would have raised taxes on the income earned from US assets held by individuals or businesses in other countries with taxes the US perceived as unfair for American businesses. The provision would 'facilitate penalty taxes on foreign companies operating in the US if their home country is deemed to have a 'discriminatory' tax system,' analysts at Citi said in a note. The tax code was considered a 'revenge' tax because it was designed to retaliate against a global tax framework agreed upon in 2021 by the Biden administration and the Organization for Economic Cooperation and Development, according to Mark Luscombe, principal federal tax analyst at Wolters Kluwer. Former Treasury Secretary Janet Yellen had negotiated a tax agreement with other OECD countries that included setting a global minimum tax rate of 15%. Republicans had opposed the agreement and thought it was unfair, arguing it ceded authority on taxation, Luscombe said. The 'revenge tax' also was set to retaliate against digital services taxes, or taxes on US tech companies that provide services to users in other countries. Digital services taxes were perceived as 'discriminatory' by the Trump administration, said James Knightley, chief international economist at ING. Trump had previously signed an executive order on his first day in office announcing that tax deals agreed upon between the Biden administration and the OECD were null. Bessent's announcement leaves room for how the United States and other countries might negotiate on taxes. 'The Trump Administration remains vigilant against all discriminatory and extraterritorial foreign taxes applied against Americans,' Bessent said in his post on X. 'We will defend our tax sovereignty and resist efforts to create an unlevel playing field for our citizens and companies.' The so-called revenge tax, which had stirred debates on Wall Street and law firms across the Atlantic, is moot before it even went into effect. There had been back-and-forth debates in recent weeks about the implications of Section 899 and whether it would push global investors away from the United States. The provision had sent shivers up Wall Street's spine as it appeared to be another protectionist policy that would penalize global investors who put their money in the United States. 'Great concern had been expressed by Wall Street and affected stakeholders about the enactment of Section 899 and its impact on foreign investment in the United States, particularly in view of its complexity, potential scope of application and compliance obligations,' attorneys at law firm Holland & Knight said in a note. 'Those concerns have been alleviated for now.' International business groups were in Wasington in recent weeks negotiating with lawmakers. Jonathan Samford, CEO of the Global Business Alliance, which opposed Section 899, told CNN the provision would have 'squandered opportunity and more investment' and contributed to 'further isolation.' 'We're very pleased that President Trump and the administration have pursued this negotiation, and as a result, called for withdrawal of this punitive and discriminatory provision,' he said. 'I commend Chairman Smith and Chairman Crapo for focusing on making the United States the most competitive it can be.' Republicans this week had begun hinting that Section 899 might be negotiable. Director of the National Economic Council Kevin Hassett said in an interview with Fox Business on Wednesday that Section 899 might not be included in the final budget bill. 'You can try to retaliate, but it's probably better to work out an agreement than just have a tax fight, just like we're having tariff fights,' Luscombe said. See Full Web Article
