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ARE YOU WAITING FOR THAT TOO? A number of prominent conservative anti-tax groups have launched a new campaign against a proposal that has flown under the radar in the tax world, along with everything else – the House Democrats' plan to beat prescription drug makers with a potentially huge new excise tax.
A total of around 40 groups – including Americans for Tax Reform, Americans for Wealth, and the National Taxpayers Union – are sending a letter to the leaders of Congress today, arguing that up to 95 percent excise duty is and will be "bad tax policy, bad health policy literally cost lives. "
"We urge you to abandon all efforts to collect a heavy tax on the prescription drugs we need," the groups added.
Ryan Ellis of the Center for a Free Economy, who leads the campaign, said there would also be digital spots focusing on Congressional Democrats and Op-Ed articles.
It is certainly understandable why the proposed tax on pharmaceutical companies has been overshadowed in the face of all of the other tax hikes President Joe Biden has sought.
The excise duty is not a new proposal either. The House Democrats also passed it in their prescription drug bill during last Congress – and, as our health team reported, the House's recent price move is running into problems even among Democrats, not to mention the expected general opposition from Republicans.
MORE ABOUT THAT IN A BIT, But first of all, thank you for coming to the Tax Day issue of Weekly Tax, where we’ll be happy to hear that you found the tiger in Houston.
Yes, but did you know Super Bowl day? Today, 119 years ago, archaeologist Valerios Stais essentially discovered the world's first (analog) computer – the Antikythera Mechanism, which the ancient Greeks used to track the sun, various planets and even the timing of the Olympic Games. (Though there is a question about the actual date? Is there.)
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BUT WHY THOUGHTS? The pharmaceutical industry itself is certainly opposed to the proposed excise tax, which is essentially the basis for the Democratic bill pushing companies to negotiate drug prices.
At the same time, even some Democrats who are very critical of pharmaceutical companies are not fully bound by excise tax.
Texan MP Lloyd Doggett, the second largest Democrat on the House Ways and Means Committee, told Weekly Tax that excise tax was only "an alternative to promoting effective negotiations" and that he was concerned that the Democrats' current bill would fail. curb the monopoly power of big pharma. "
So why are conservative groups betting on a bill that – like a few years ago – would almost certainly never pass the Senate, even if it did pass the House?
Ellis told Weekly Tax that Republicans didn't discuss excise tax as often as they criticized the bill. Instead, she focused on claiming that the measure would move research and jobs to places like China, calling the bill essentially a socialist takeover.
But if they did, Ellis argued, it would only add to the right-wing opposition to the bill, given how vigorous conservatives have come to stop tax hikes.
"We want you to have fun slapping your voting cards in the slot if you vote no," Ellis said. The hope there, he added, is that it will also cause problems for House Democrats, who are facing potentially close races who will then "have to deal with an issue that they believed would be beneficial in their re-election and." now represents a liability ".
Someone will be right: the Biden team and the progressives in Congress believe they can sell big tax increases, as our Sarah Ferris reports this morning.
That's not to say that every Democrat is fully on board with multi-trillion dollar tax hikes. Far from it: More and more centrist guys on the hill are worried about being knocked over tax hikes on the campaign, like the Republicans have tried for decades.
Even so, some moderates also think there is promise to argue that the rich and corporations have to pay their fair share and that higher-end tax hikes can hurt income inequality. Perhaps for good reason: These kinds of tax hikes do pretty well in polls, as people like Biden's top pollsters from last year keep pointing out.
And what do executives think of these tax hikes these days? According to Morning Money's Ben White, they don't stand a chance.
In fact, the business lobby seems full of confidence right now, despite admitting that Democrats stand a good chance of hitting a 25 percent corporate rate – though not the 28 percent proposed by Biden.
But all these tax hikes for rich people? That's a climb where business leaders argue that enough centrist Democrats will get cold feet when it comes to raising taxes properly when the post-pandemic economy picks up.
And all without hitting the $ 10,000 cap on state and local deductions from the 2017 GOP Tax Act, which a group of Blue State Democrats are furiously trying to cut under the infrastructure package.
How can we reconcile all of this? Democrats in Congress are certainly preparing to pass something similar to Biden's plan, though it would require the unification of nearly every elected Democrat in Washington. Meanwhile, the president has vowed to pay for his extensive agenda. Is there a chance the Democrats will accept a more modest package than what is currently out there?
ONE FINAL REMINDER: Today is the deadline for filing taxes for individual returns. And, as noted by Bloomberg's Laura Davison, the IRS is still working on a backlog on previously filed returns and struggling to answer calls for help.
DOLLAR INCREASE: The International Monetary Fund recently stated that Ireland needs to generate more income to fund public investments. Irish officials generally agree, but this is where the deal breaks down.
The Tánaiste, Leo Varadkar, has made it clear that the government will not impose any income taxes – and is focusing on potential wealth taxes. The problem, according to Eoin Burke-Kennedy of the Irish Times, is that a wealth tax that targets only the ultimate goal is not enough to cover much of public investment. So, "The unfortunate truth for the government is that income tax – the area it has promised not to touch – is by far the easiest place to get more revenue," writes Burke-Kennedy.
THE BREAK REMAINS: Governor Brian Kemp said Friday that Georgia fuel taxes would be suspended for another week because of the computer hack that plagued the Colonial Pipeline, The Associated Press reports. Those taxes – Georgia charges 28.7 cents per gallon of gasoline and 32.2 cents per gallon of diesel – will now be turned off at least until Saturday, in an attempt to provide relief to consumers, Kemp said.
MP Marjorie Taylor Greene (R-Ga.) Has mistakenly requested an exemption for two apartment buildings.
NBC News: "Biden's tax hikes flow as Democrats grapple with competing pressures."
Bloomberg Editor: Biden should compromise with Republicans.
Bloomberg: "Sunak in the UK is not being sold under Biden's global corporate tax plan."
The largest insurance company in Switzerland admits that it supported and facilitated tax evasion in the USA.
H&R Block supports the regulation of tax advisors through the American Families Plan: H&R Block welcomes President Biden's efforts to protect Americans from incompetent and unscrupulous tax advisors by creating tax standards for taxpayers. For many Americans, the tax return is the most important financial transaction of the year, yet there are no federal standards for being a tax advisor. As a longtime lawyer for TSS, H & R Block supports the demand that a paid preparer pass a competence test, complete an annual training course and carry out a criminal investigation. Learn more about H&R Block tax law and policy.
Prince Harry and Meghan Markle reportedly made "I Wanna Dance with Somebody" by Whitney Houston the song for their first dance at their wedding.