Tax-Free Tips Act Introduced by GOP Representatives
Representatives Thomas Massie from Kentucky and Matt Gaetz from Florida have put forward a new legislation called the Tax Free Tips Act. This proposal, inspired by former President Donald Trump, seeks to amend the Internal Revenue Code to exclude tips from both income and employment taxes. According to the Committee for a Responsible Federal Budget, this move could potentially reduce federal revenues by $150 billion to $250 billion over a decade, even before considering additional lost revenue from behavioral changes.
Arkansas Implements Major Tax Reductions
Governor Sarah Huckabee Sanders of Arkansas has officially signed legislation to lower corporate and individual income tax rates. This marks the third tax cut initiative since Sanders assumed office last year. Despite ending the current fiscal year with a surplus of $708 million, Arkansas anticipates the new cuts will cost approximately $483 million in the first year and $322 million annually thereafter.
Maricopa County Homeowners to Receive Tax Refunds
Homeowners in Maricopa County are set to receive substantial property tax refunds after a class-action judgment determined that thousands were overcharged between 2015 and 2023. The financial impact across all tax districts in the county is estimated to be around $330 million.
LA County to Vote on Half-Cent Sales Tax for Homelessness
Residents of Los Angeles County are gearing up for a significant vote in November. They will decide on the introduction of a permanent half-cent sales tax aimed at funding affordable housing and homeless services. This new measure, known as the Affordable Housing, Homelessness Solutions, and Prevention Now initiative, seeks to replace Measure H, a quarter-cent sales tax for homelessness programs that will expire in 2027.
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