Tax policy news covering federal and state tax legislation, IRS rules, corporate and individual tax debates, and revenue and deduction changes.
Prime Minister Mark Carney announced Tuesday at a Toronto investment summit that Canada is expanding investment tax write-offs to include oil and gas pipelines, mining property, and other natural resource assets. The policy aims to give the country a competitive tax edge by allowing immediate expensing of most new assets to lower effective tax rates.
Finance Minister François-Philippe Champagne announced advance tax rulings for investments of $1 billion or more at the Milken Institute conference. The initiative supports the Canada Investment Summit and follows the 2026 Spring Economic Update priorities. Executives cited regulatory uncertainty as a barrier to investable projects, while TMX Group CEO John McKenzie and Fitch Ratings head Jeremy Carter emphasized the need for reforms to compete globally.
Chancellor John Healey is developing measures to exempt pensioners earning just above the income tax threshold from paying tax. This policy addresses concerns that rising wages and the pension triple lock will push more retirees into taxable brackets starting next April.
The House Ways and Means Committee released the 114-page Digital Asset Tax Certainty Act on Monday, addressing staking, wash sales, and mining. The legislation eliminates taxes on small transactions under $10 but faces a tight schedule before the November election break limits debate time.
Corporate tax payments dropped 25% to $294 billion in the first 11 months of the fiscal year, despite soaring profits. The Congressional Budget Office attributed the decline to deductions from the One Big Beautiful Bill Act, with tech firms like Meta leveraging expanded breaks for AI infrastructure investments.
The Wall Street Journal editorial board critiques the UK government's plan to impose a new tax on hotel stays, introduced by Prime Minister Andy Burnham. The piece argues this levy serves primarily as a revenue stream for regional mayors rather than addressing broader fiscal challenges, characterizing it as shifting the tax burden to tourists.
Lord Blunkett urges UK Prime Minister Andy Burnham to reverse the inheritance tax on large farms, calling it a mistake driven by Treasury orthodoxy. The commentary supports rural campaigners' calls for a policy reset, arguing that current measures unfairly burden agricultural estates despite government assurances.
The European Union reports a near 50% reduction in low-value parcels from outside the bloc after implementing a €3 flat tax on shipments under €150. Customs officials in Belgium and the Netherlands confirmed the sharp decline, though some retailers may be adjusting logistics to bulk imports to circumvent the per-parcel duty.
Grant Thornton Ireland warns that rising property values are exposing more taxpayers to significant capital acquisitions tax liabilities, urging targeted reform. Analysis shows nearly 59% of inheritance tax revenue came from beneficiaries outside the parent-child threshold, yet Minister Jack Chambers has effectively ruled out equalizing thresholds in the upcoming budget.
A growing group of lawmakers, including Republicans like Rep. Tom Cole and Rep. Lloyd Smucker, are signaling openness to raising Social Security taxes. This shift occurs as projections indicate the trust fund faces earlier insolvency, potentially leading to significant benefit cuts by 2032 if adjustments are not enacted.