Supreme Court Endorses TCJA’s Mandatory Repatriation Tax
In a significant 7-2 decision, the Supreme Court upheld the constitutionality of the Tax Cuts and Jobs Act’s (TCJA) mandatory repatriation tax (MRT). The decision came after Charles and Kathleen Moore contested being taxed on income they never received from corporate shares influenced by the TCJA. The Court ruled that “Congress may attribute an entity’s realized and undistributed income to the entity’s shareholders or partners, and then tax the shareholders or partners on their portions of that income.” According to Steve Rosenthal from the Tax Policy Center, this ruling suggests that the Court might restrict Congress’s taxing authority in comparable future issues.
Debate Over Butane as an Alternative Fuel
In a separate controversy, the federal government has moved to dismiss three lawsuits from oil refiners who are seeking $391 million in alternative fuel mixture credits. The federal stance is clear: butane cannot be classified as an alternative fuel. Contrarily, the refineries argue that butane, being a type of liquefied petroleum gas, should qualify as an alternative fuel under section 6426(d). Further details on this clash are documented by TaxNotes.
Connecticut Diesel Tax Rises Following Year-long Freeze
Connecticut’s diesel tax is set to increase by 3 cents, bringing it to 52.4 cents per gallon—a rise of 6.5 percent. This adjustment follows a hiatus in hikes, using a formula linked to the wholesale diesel prices over the past twelve months. The trucking industry is advocating for a stable, unchanging fuel tax, akin to the state’s retail gasoline tax, which hasn’t changed since July 2000.
New Hampshire Faces Tax Revenue Impasse
A debate around New Hampshire’s Medicaid Enhancement Tax, which generates $300 million annually, is heating up. This tax has been crucial for securing additional federal health care funds. Currently, an expiring agreement ensures that hospitals receive 91 percent of the tax revenue. However, Governor Chris Sununu proposes reducing their share to 80 percent to allocate more funds to community mental health and other federally qualified health centers.
Chinese Automakers Push For Tariffs on EU Imports
In response to the European Union’s threat to impose a 38 percent tariff on Chinese electric vehicle manufacturers starting July 4, Chinese car companies are urging their government to retaliate. They suggest imposing tariffs of up to 25 percent on EU automakers. This escalating trade dispute could have significant repercussions for the global automotive market.
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