Former President Trump’s proposal to eliminate taxes on tips has sparked a frenzy in the restaurant industry, with servers receiving handwritten notes endorsing Trump’s policy on their receipts. This move is seen as a major political strategy targeting minority neighborhoods and appealing to those who remember working for tips, while also drawing a stark contrast with President Biden’s tax policies.
Pakistan’s Finance Minister, Muhammad Aurangzeb, warns that the country will need more IMF bailouts if it doesn’t significantly increase tax revenue. The controversial budget, which aims to raise PKR 13 trillion by next July, has sparked backlash as it increases the tax burden on salaried workers while exempting income tax on property sales for bureaucrats and military personnel. The minister defends the budget, emphasizing the need to create a sustainable economy and attract foreign investment.
In a heated televised debate, UK Prime Minister Rishi Sunak and Labour Party leader Kier Starmer exchanged barbs and accused each other of failing to address key issues facing the country. Sunak criticized Labour’s policies, claiming they would lead to higher taxes, while Starmer attacked the Conservative government’s record on immigration, the economy, and healthcare. Both leaders defended their positions on the European Convention on Human Rights, with Sunak expressing a willingness to withdraw from it if necessary.
Two fiscal news items highlighted the divergent paths taken by North Carolina and California: North Carolina celebrated projected revenue surpluses, while California is grappling with a large budget deficit. North Carolina’s conservative fiscal policies include low taxes, restrained spending, and debt reduction. California’s high tax rates and expansive spending have made its revenue volatile and led to budget deficits. Despite high tax revenue, California has frequently found itself in a fiscal crisis due to unfunded mandates and pension liabilities. North Carolina’s fiscal discipline offers a blueprint for other states, demonstrating that conservative fiscal policies can lead to economic stability and growth.
Cottage owners are rushing to sell their properties before proposed changes to capital gains taxes take effect on June 25th. The new rules would raise the inclusion rate on capital gains greater than $250,000 from 50 percent to 66.7 percent. This means that individuals who sell a second property after the new rules take effect would pay a higher rate of tax on the profits from the sale. Realtors say they are seeing a flood of clients looking to speed up the selling process in order to avoid the higher tax bill.
A Florida resident, Mason Maxwell, won $1 million from a scratch-off game but opted for a lump sum payment, resulting in a significant reduction in his winnings due to federal taxes. Experts advise lottery winners to carefully consider the implications of their payment choices, as annuity payments can provide consistent cash flow and mitigate tax burdens.
Labour deputy leader Angela Rayner is facing calls to step down after she was accused of dodging capital gains tax on a house sale. Rayner has denied the allegations, but has refused to allow her boss, Sir Keir Starmer, to look at the “tax advice” she says exonerates her. Starmer has said he does not want to look at the details because he does not want to suggest that he does not trust Rayner. However, critics have accused him of being afraid to hold his deputy to account. The row comes at a difficult time for Labour, which is trailing the Conservatives in the polls and is facing a general election in 2024. If Rayner is found guilty of tax dodging, it would be a major blow to the party’s reputation and could cost it votes.
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