Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
HOPE Act Introduces New Incentives for Affordable Housing Rehabilitation
The HOPE Act introduces new federal tax incentives aimed at encouraging the rehabilitation of affordable housing. The legislation targets existing low-income housing stock, offering enhanced tax credits or deductions for qualifying rehabilitation projects. This represents a meaningful update to the tax incentive framework surrounding affordable housing, potentially affecting developers, investors, and nonprofits involved in housing projects. Practitioners working with real estate clients, low-income housing tax credits (LIHTC), and community development finance should take note of the new provisions and assess eligibility criteria, compliance requirements, and planning opportunities created by the Act.
Proposed 21% VAT on Short-Term Tourist Rentals (House Sharing)
A proposal has been put forward to impose a 21% VAT rate on short-term tourist rentals and house-sharing platforms. The measure aims to level the playing field between traditional hotel accommodation, which is subject to VAT, and peer-to-peer rental platforms that have largely operated outside the VAT net. If enacted, the change would significantly increase the tax burden on private landlords renting through platforms and could affect pricing in the short-term rental market. The proposal reflects broader regulatory pressure on the sharing economy across multiple jurisdictions.
Chattanooga Church Pushes Republican Candidates, Possibly Violating Tax Law
A Chattanooga church is facing scrutiny for allegedly violating the Johnson Amendment, the federal tax law prohibiting 501(c)(3) nonprofit organizations from engaging in political campaign activity. The church reportedly promoted Republican candidates, which could jeopardize its tax-exempt status under IRS rules. This case highlights ongoing tensions around enforcement of political activity restrictions on religious organizations and raises questions about whether the IRS will act. Violations can result in revocation of tax-exempt status, making this a notable development in the intersection of nonprofit tax law and political activity regulation.
Mamdani Sparks Backlash, Debate with Social Media Post Celebrating Luxury 2nd-Home Tax
New York City mayoral candidate Zohran Mamdani sparked backlash after posting on social media celebrating a proposed luxury second-home tax. The policy would impose additional taxes on high-value secondary residences in New York City, targeting wealthy property owners. Supporters argue it addresses housing affordability, while critics contend it could depress real estate investment and harm the broader market. The debate reflects broader tensions in New York over progressive tax policy proposals targeting high-net-worth individuals and property wealth, making it a significant local tax policy development.
Cryptocurrency Trade Group Sues Illinois Over Digital Asset Tax
A cryptocurrency trade group has filed a lawsuit against the state of Illinois challenging a digital asset tax. The legal action raises significant questions about the taxation of cryptocurrency and digital assets at the state level, with potential implications for how jurisdictions across the US can impose taxes on crypto transactions and holdings. The case could set important precedents for digital asset tax policy and the rights of crypto businesses to contest state-level tax measures, making it a key development for practitioners advising clients in the digital asset space.
New Washington ‘Millionaires Tax’ Lawsuit Challenges Ballot Language
A new lawsuit in Washington State challenges the ballot language used for a proposed 'Millionaires Tax,' which would impose additional income taxes on high earners. The legal challenge argues the ballot description is misleading to voters, potentially affecting how the measure is understood and voted upon. Washington currently has no state income tax, making this a landmark policy effort. The lawsuit could delay or reshape the ballot measure's path forward. The case is significant for state tax policy, raising constitutional and procedural questions about direct democracy and income tax initiatives in Washington.
Tracking the Impact of the Trump Tariffs & Trade War
The Tax Foundation tracks the evolving impact of Trump administration tariffs and the broader trade war, analyzing economic and revenue consequences of import duties across trading partners. The tracker covers tariff rates, affected goods, retaliatory measures from countries such as China, Canada, and the EU, and estimates of economic costs including GDP effects, job losses, and price increases for consumers. It serves as a living reference for practitioners and policymakers monitoring how escalating trade tensions translate into real customs and trade tax burdens on businesses and households in the United States.
Florida Police and Fire Unions Oppose Property Tax Rollback
Florida police and fire unions are opposing a proposed property tax rollback, signaling a political and fiscal clash over local government revenues. The rollback would reduce property tax collections, potentially affecting funding for public safety services. Union opposition underscores concerns that lower tax revenues could lead to budget shortfalls impacting employee compensation and staffing levels. The dispute reflects broader tensions in Florida over tax relief measures and their downstream effects on municipal budgets and essential public services, representing a notable state-level tax policy development.
NYC Limits Options for Owners of Second Homes to Appeal New Tax
New York City has introduced restrictions limiting the ability of second home owners to appeal a newly enacted tax targeting such properties. The move reduces procedural options for affected property owners seeking to contest their tax liability, raising concerns about taxpayer rights and due process in the appeals process. The development is significant for owners of secondary residences in NYC and their advisers, as it narrows the avenues available to challenge assessments under the new tax regime, which was designed to generate revenue from non-primary residential properties.
AI Tokens and Sales Tax: Key Considerations
The article examines the emerging sales tax implications of AI tokens—prepaid credits used to access AI services and compute resources. Key considerations include whether tokens constitute taxable digital goods or services, how jurisdiction determines taxability, the timing of tax liability (at purchase vs. redemption), and whether tokens are treated as prepaid products or exempt financial instruments. As AI consumption models proliferate, tax practitioners face uncertainty across US states with varying digital product rules. The piece highlights the need for businesses selling or purchasing AI tokens to assess nexus, product classification, and exemption certificate requirements under existing sales tax frameworks.
Capital Cost Recovery across the OECD, 2026 Update
The Tax Foundation's 2026 update on capital cost recovery across OECD nations examines how tax systems treat business investment through depreciation and capital allowances. The report benchmarks countries on the generosity of their cost recovery provisions, analysing allowances for machinery, industrial buildings, and intangibles. Strong capital cost recovery reduces the effective tax burden on investment, influencing business location decisions. The update highlights divergences among OECD members and assesses how recent reforms—including bonus depreciation and full expensing measures—affect overall competitiveness. The findings are relevant for policymakers and practitioners evaluating corporate tax burdens and cross-border investment incentives.
Capital Allowances in Europe, 2026
The Tax Foundation's 2026 edition benchmarks capital allowance regimes across European countries, examining how quickly businesses can deduct the cost of investments in machinery, buildings, and intangibles for corporate income tax purposes. The report compares present value of depreciation allowances, highlighting divergences between immediate expensing and slower depreciation schedules that affect the effective tax burden on capital investment. Findings are relevant for corporate tax planning and policy debates around competitiveness, as generous capital allowances reduce the cost of capital and influence business investment decisions across EU and wider European jurisdictions.
A modest proposal for a new tax
A policy proposal exploring a new tax mechanism to address social care funding challenges in the UK. The article examines potential levy or tax structures that could be introduced to cover rising social care costs, framing the discussion around fairness, burden-sharing, and fiscal sustainability. Given the URL reference to a 'social care costs lottery,' the piece likely critiques the current unpredictable nature of care cost exposure for individuals and proposes a dedicated tax or insurance-style contribution as a more equitable solution to fund long-term social care provision.
Over 120 millionaires demand higher wealth taxes
More than 120 millionaires have publicly called on governments to impose higher wealth taxes on the ultra-rich. The group, coordinating through an advocacy campaign, argues that existing tax systems are insufficiently progressive and that increased taxation of high-net-worth individuals is necessary to address wealth inequality and fund public services. The millionaires are urging policymakers across multiple countries to introduce or expand wealth taxes, signalling growing momentum among wealthy individuals themselves for tax reform targeting the top of the income and wealth distribution.
Libby: Theories of University Endowment Taxation
Academic article examining theories behind the taxation of university endowments. The piece explores the policy rationale, legal frameworks, and competing perspectives on whether and how university endowment funds should be taxed, a topic of increasing relevance following the introduction of the U.S. excise tax on net investment income of certain private university endowments under the Tax Cuts and Jobs Act. The analysis likely considers equity, charitable exemption principles, and reform proposals, offering practitioners and policymakers a theoretical grounding for ongoing legislative debates around endowment taxation.
New data suggests Scotland’s 48p tax rate may be losing money
New data indicates that Scotland's 48p top income tax rate may be generating less revenue than anticipated, raising concerns about Laffer curve effects. The analysis suggests high earners may be relocating, reducing taxable income, or otherwise adjusting behaviour in response to the elevated rate, potentially resulting in a net revenue loss compared to what a lower rate would have yielded. This finding has significant implications for Scottish tax policy and the broader debate on optimal top marginal rates within the UK's devolved tax framework.
A Competitive Corporate Tax Code is Key to Sustaining Strong Economic Growth
The Tax Foundation argues that a competitive corporate tax code is essential for sustaining strong economic growth. The piece likely examines how corporate tax rates, structures, and incentives affect business investment, competitiveness, and broader economic performance. It advocates for tax policy reforms that keep the corporate tax system attractive relative to international peers, emphasizing the relationship between lower or more efficient corporate taxation and increased capital formation, productivity, and job creation. The article contributes to ongoing policy debates around corporate tax competitiveness, particularly relevant in the context of global minimum tax discussions under Pillar Two.
CPAacademy: RACE, WEALTH, AND U.S. TAX POLICY: WHO BENEFITS FROM AND WHO BEARS TAX BURDENS?
A CPAacademy course examines the intersection of race, wealth, and U.S. tax policy, analyzing which demographic groups benefit from tax provisions and which bear disproportionate tax burdens. The course addresses structural questions about how the U.S. tax code distributes benefits and obligations across racial and economic lines, relevant to practitioners advising on equity-related policy discussions and tax reform debates.
US To Impose Widespread Tariffs As Temporary Duties Expire
The US is set to impose widespread tariffs as a period of temporary reduced duties expires, marking a significant escalation in trade policy. The move affects a broad range of imported goods and trading partners, with businesses facing higher import costs as previously paused or reduced tariff rates end. Companies reliant on global supply chains must reassess sourcing strategies, customs duty liabilities, and pricing models. The development signals a continued hardening of US trade policy and will require importers to revisit classification, valuation, and duty mitigation strategies such as foreign trade zones and first-sale valuation.
Digital Asset Industry Group Sues to Block Illinois’ First-in-the-Nation Crypto Tax
A digital asset industry group has filed a lawsuit seeking to block Illinois from enforcing what is described as the first-of-its-kind cryptocurrency tax in the United States. The legal challenge targets Illinois' novel tax on crypto transactions, arguing it is unconstitutional or otherwise legally defective. The case represents a significant tax controversy with broad implications for how U.S. states may tax digital assets. A successful challenge could deter similar legislation in other states, while a defeat could open the door to widespread state-level crypto taxation beyond existing capital gains frameworks.
Get the Friday Digest
Every Friday, a curated summary of the week's tax news delivered to your inbox. Choose what you want to hear about — no noise, no spam, unsubscribe anytime.
Tax heads you care about(select all that apply)
Regions you care about(select all that apply)
Your email is never shared or sold. You can unsubscribe at any time. Built in compliance with GDPR.