CHERRY HILL, N.J.— New rules unveiled by the IRS undermine some states' attempts to help residents keep a version of a popular federal income tax deduction. Last year's Republican tax overhaul put a $10,000 cap on deductions for state and local income taxes, which could affect some high-earners in high-tax states. A handful of high-tax states sued the administration earlier this summer over the Republican tax law, which they say was in part politically motivated to attack Democratic-leaning states. Republicans have said those states should reduce their taxes instead of fighting the administration. Where the tax bill won't help: Housing prices Here are questions and answers about the IRS rule announced Thursday, what it means for states and how high-tax states might respond. Why is the deduction so important in these states? The SALT deduction is popular and widely used in high-tax states, including California, New Jersey and New York. In those places, many residents … [Read more...] about Trump administration looks to keep high-tax states in line with deduction rules
Why government impose tax
Auckland fuel tax will be felt in South as well
The South Island is poised for further fuel price increases, writes Jami-Lee Ross. The cost of living in New Zealand is increasing and Statistics New Zealand has just published information on the price rises we have seen in New Zealand over the past year. The big mover was petrol, where prices increased by 10%, or 20c, in a single year. That increase is before the Government imposed a new 11.5c a litre regional fuel tax in Auckland, which kicked in this month. The Government also cemented plans for a country-wide increase of more than 12c a litre over the next three years, starting with 4c a litre at the end of September. This is all going to sting Kiwis' wallets regardless of where they live. As an Auckland-based MP writing for a southern paper, I'm aware that there might be a few raised eyebrows. The North has traditionally paid less for fuel than the South, so what's the complaining about? Well, the Government's plans, while marketed as an Auckland-based plan, is anything but and … [Read more...] about Auckland fuel tax will be felt in South as well
Why Brexit Poses an Existential Issue for Gibraltar
Just as the U.K.’s exit from the European Union poses challenges for the Irish border, it may complicate life on and around Gibraltar. The rocky outcrop at Spain’s southern tip has been British territory for 300 years, and its 2.2 billion pound ($2.9 billion) services economy relies on frontier workers coming from Spain for about 50 percent of its labor force. Their salaries, plus the business of supplying Gibraltar, are a lifeline for Spanish towns close to the border, whose unemployment rate about doubles the nation’s average. Before the EU and the U.K. agree on the terms of their divorce, British and Spanish leaders will need to decide what to do about Gibraltar.1. How does Brexit apply to Gibraltar?The 6.8 square-kilometer enclave is a self-governing British overseas territory, like Bermuda or the Falklands Islands. As such, most of its 34,000 residents are British citizens, who voted almost unanimously in a 2002 referendum to remain under sole British … [Read more...] about Why Brexit Poses an Existential Issue for Gibraltar
Trump, the stealth tax-raiser
Got a few bucks for the president? He needs it to settle a score. President Trump has been pressuring the postmaster general to double the shipping rates the U.S. Postal Service charges e-commerce giant Amazon, according to a nearly unbelievable account in the Washington Post. Can Trump really do that? It’s a question we’ve asked many times during the last 16 months. The answer this time is — probably not. Trump, of course, has been attacking Amazon for months, out of personal animosity toward its CEO, Jeff Bezos, who also owns the Washington Post, which routinely publishes unflattering Trump material (like the postal scoop it just got from, well, who knows). So in the august tradition of history’s best statesmen, Trump wants to use his power as president to punish a single company for petty personal reasons. It must gall Trump that he can’t. Amazon’s rates with the USPS are set by contract, and even the president can’t abrogate a contract. … [Read more...] about Trump, the stealth tax-raiser
Air passenger duty tax: Why is the rate changing and what does it mean for British travellers?
Air travel is set to get more expensive for travellers flying out from the UK this spring, as a tax known as Air Passenger Duty (APD) increases. As of 1 April 2017, there were two rates for passengers (band A and band B) over three tiers: reduced rate, standard rate, higher rate. Band A travellers paid £13, £26 and £78 respectively, while band B passengers paid £75, £150 and £450 over the three tiers. From 1 April 2018, those rates are set to rise yet further. Here’s what you need to know. What is Air Passenger Duty? Air Passenger Duty (APD) is a tax paid by all passengers flying out of the UK, and is government imposed. Other countries operate similar taxes, but the UK’s APD tax is the highest in the EU for both short and long haul flights, by some margin. Tim Cade of Airlines UK, the trade body for UK registered airlines, told The Independent it is “more than three times the rate in … [Read more...] about Air passenger duty tax: Why is the rate changing and what does it mean for British travellers?