What would happen if Social Security benefits were no longer taxed? TPC’s Howard Gleckman reportson a new TPC analysis of former President Trump’s proposed repeal of the tax on Social Security benefits. The plan would lower taxes for US households by an average of $550, with those earning between $63,000 and $200,000 seeing the biggest change as measured by after-tax income. By reducing Social Security and Medicare hospital insurance revenues by $1.5 trillion over the next decade, both programs would become insolvent faster.
Sports betting operators will “tax” their customers’ winnings. DraftKings announced its plans for a gaming surcharge on winning bets in states with multiple betting operators if the sports betting tax rate exceeds 20 percent. “If you made a $10 bet to win $20, you would pay like 30 cents,” explained a company spokesperson. States include Illinois, New York, Pennsylvania, and Vermont. Over 30 states allow some form of sports wagering, and many of them permit mobile and online betting. DraftKings is believed to be the first US operator to tax the winnings of a bettor.
Better reporting can help measure if nonprofit hospitals are meeting their charitable goals. TPC’s Gene Steuerle reviews how nonprofit hospitals could improve their financial assessments. Matching or reconciling available charitable resources to their actual uses could help determine the size and depth of a nonprofit hospital’s charitable footprint.
Nebraska state lawmakers propose a tax on ammunition. TaxNotes reports (paywall) on the bill, which would impose a 5 percent excise tax on ammunition sales. Revenue from the tax would support a new grant program for post-traumatic stress disorder services.
A cat tax in Kenya. Nairobi City County wants all cats in its jurisdiction to be registered by their owners. Cat owners in Nairobi would be required to purchase an annual cat license for $1.50 and submit proof the cat has been vaccinated against rabies. Owners would also have to ensure their cats don’t “scream or cry in a manner that disturbs the peace” of residents.
Congress is not in session. The Daily Deduction will post on Mondays (and Tues., Sept. 3) until it resumes its regular schedule on Monday, Sept. 9.
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