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Study: U.S. Corporate Income Faces Third-Highest Integrated Tax Rate in Developed World

October 1, 2021

Under the U.S. House’s proposed tax plan, the U.S. would tax corporate income at the third-highest integrated rate among developed nations, at an average of 56.6%. That’s according to the non-partisan Tax Foundation, which says the integrated rate reflects the corporate income tax, as well as the shareholder-level capital gains and qualified dividends tax.

Only South Korea and Ireland would have higher rates than the U.S, the Foundation says. The average integrated rate in the developed world, excluding the U.S., is 41.4%. 9/30/2021

Action Alert: Stop the $2 Trillion Tax Hike

September 24, 2021

As previously reported, Congress is considering legislation that would raise federal taxes on businesses by more than $2 trillion. (To put this in perspective, the 2017 tax reform law reduced taxes by $1.4 trillion.)

The National Association of Manufacturers (NAM) — via its “Manufacturers United” site — has created a Tax Action Center to help businesses get information and engaged with their federal representatives. It includes a sample letter from business leaders to employees; sample letters to the editor; and social media messages. You can also email members of Congress directly.

The OMA has signed this NAM letter to congressional leaders, urging them to vote against tax increases and to protect the 2017 tax reform law. OMA members are encouraged to sign, as well. 9/23/2021

Proposal to Report Financial Activity to IRS Raises Red Flags

September 24, 2021

A provision in the U.S. House Democrats’ $3.5 trillion spending plan would mandate that banks and other financial institutions report transaction data to the IRS for accounts with more than $600 in inflows or outflows. Due to privacy concerns, banking groups are strongly opposed, according to the Ohio Bankers League. The Independent Community Bankers of America says the proposal would “overload the IRS” with personal information. 9/20/2021

At a Glance: Ohio’s Sales and Income Tax Collections

September 24, 2021

The non-partisan Legislative Service Commission — which provides the Ohio General Assembly with bill drafting, budget and fiscal analysis, and other services — has published this infographic showing Ohio’s sales and personal income tax collections over the past 40 years.

In Fiscal Year 2021, sales-and-use taxes and personal income tax receipts accounted for 84.3% of state tax receipts. 9/23/2021

Reactions to Congressional Democrats’ Tax Plan

September 17, 2021

This week on Capitol Hill, House Democrats outlined provisions of a massive tax increase to fund a $3.5 trillion budget reconciliation bill referenced as the Build Back Better Act. The tax changes are aimed at boosting federal spending on social and climate programs. Key changes would include top corporate and individual tax rates of 26.5% and 39.6%, respectively, and a capital gains tax of 25%.

The National Association of Manufacturers roundly criticized the proposal and the threat it poses to American jobs. The non-partisan Tax Foundation said that under the plan, the U.S. would have an average corporate tax rate of 30.9%, which would be third highest in the developed world.

OMA Connections Partners Plante Moran, Schneider Downs, and GBQ Partners have published summaries of the proposed tax changes. Connections Partner RSM is offering a complimentary webinar at 2 p.m. Tuesday, Sept. 21 to provide an update on the latest federal tax policy developments. 9/15/2021

Producer Wholesale Prices Up 8.3% From a Year Ago

September 17, 2021

Federal data indicate that the prices producers get for final demand goods and services are up 8.3% over the past year — the highest rate of growth since at least 2010, according to CNBC. (Here’s the producer price index for manufacturing.)

OMA Connections Partner RSM notes that last month’s 0.7% jump in the index was slower than the gains in June and July, and inflation could be easing.

Meanwhile, the consumer price index is up 5.3% from a year ago. Moody’s Analytics estimates that transportation costs have contributed about 10% of that increase. 9/14/2021

Ohio Senate Opposes Proposed Tax Hike on Oil and Gas Industries

September 17, 2021

This week, the Ohio Senate passed Senate Resolution 176 to urge Congress to protect the natural gas and oil industries from disproportionate tax increases or other punitive measures. Specifically, the measure takes aim at proposals in congressional Democrats’ massive $3.5 trillion budget reconciliation plan. The oil and gas industry in Ohio contributed more than $58.7 billion to Ohio’s economy in 2019, while employing more than 375,000 Ohioans.

The OMA recently teamed with allies from Ohio’s business community to convey to Ohio’s congressional delegation concerns regarding proposed tax hikes on U.S. oil and gas producers. 9/15/2021

At a Glance: Property Taxes by County

September 10, 2021

How do your local property taxes compare statewide and nationally? The Tax Foundation has updated this interactive map that shows the median property tax paid in every U.S. county as of 2019, the latest year available. In Ohio, Delaware County had the highest median property tax bill at more than $5,600; Lawrence County had the lowest at $922. 9/8/2021

Despite COVID-19 Surge, Ohio Tax Collections Beat Forecasts

September 10, 2021

Ohio’s overall tax receipts in August beat estimates by $15.4 million, or 0.7%, according to preliminary data from the Office of Budget and Management.

Two months into the new fiscal year, the state’s total tax receipts are exceeding forecasts by more than $40 million, or 0.9%. Of particular note, the commercial activity tax is 6.9% ahead of estimates. 9/7/2021

Timmons to Biden Administration: Tax Hikes Will Cost Manufacturing Jobs

September 10, 2021

National Association of Manufacturers President and CEO Jay Timmons has reacted to U.S. Commerce Secretary Gina Raimondo’s address to the City Club of Cleveland.

Timmons said: “Secretary Raimondo correctly notes that ‘too many Americans feel like they’ve been left behind,’ but returning to archaic tax policies of the past would set Americans back even further. Manufacturers kept their promises to raise wages and invest in their communities after the 2017 tax reform law. Why would anyone want to undo that progress?”

Read Timmons’ full statement here. 9/9/2021