Which states are doing better with an energy tax?
By Paul ArmentanoThe Associated PressPublished Mar 07, 2019 12:48:25With the new federal tax law, states will have to increase sales taxes by about 5 percent to fund a tax cut.
The tax cut is expected to raise about $4.4 trillion over the next decade, with a boost from a sales tax credit that goes to families earning more than $250,000 per year.
While some states, such as California and New York, already have significant increases in their sales taxes, a large number of states, including Texas, have not.
The new federal law includes an exemption for certain sales taxes that are not subject to the state sales tax.
It also does not apply to sales taxes paid by businesses.
The new law includes a “fiscal cliff” that requires all states to raise sales taxes for two years.
The House of Representatives has scheduled a vote on the bill Thursday.
The Senate Finance Committee will vote on a bill Thursday to address the tax cut, with Sen. Lamar Alexander, R-Tenn., calling it the most important tax cut in a generation.
It will include a tax credit for those who buy goods and services through online platforms, such a Amazon, eBay and Walmart.
A tax credit would be available to those who earn less than $200,000 annually.
It would not apply for people making more than that.
The credit would apply to all federal taxes except for income taxes and payroll taxes.
The Tax Foundation, a conservative think tank, said it’s likely that about $1.4 billion of the $4 trillion in sales tax revenue would be spent on other tax relief.
That would come out to about $3,000 for every person in the U.S.
A federal tax deduction for certain types of goods and transportation would be extended to individuals earning more and families making more.
This would reduce the burden of paying for things such as mortgage interest and child care.
Some businesses could also save money by offering lower prices and higher wages, as the tax bill would exempt business expenses that include payroll and other taxes.
A separate measure would make it easier for employers to use state and local taxes to offset payroll and income taxes, as long as they meet certain requirements.
States could also use the credit to offset the costs of certain child care costs, including childcare, that are paid by employers.
The bill also provides more flexibility for states to create their own programs to provide child care and other services.
The Senate will vote Thursday on the measure.
The House passed the bill by voice vote last week.