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<ul class="summary-list"><li>Illinois residents will vote on a 3% tax for millionaires in November.</li><li>The governor says the tax could generate $4.5 billion annually and alleviate high property taxes.</li></ul>Voters in Illinois will decide in November whether to add a special tax on people who make $1 million or more. State leaders say it could alleviate the burden of high property taxes on the average resident.A state estimate conducted by Illinois Gov. JB Pritzker's administration found that the new tax would generate $4.5 billion annually if passed into law, according to WBEZ, Chicago's public radio station, which obtained the estimate through a public records request.The legislation in Illinois is similar to taxes on the wealthy passed in other states, like Massachusetts. Massachusetts approved a 4% tax on those earning more than $1 million in 2022, which <a target="_blank" class="editor-rtfLink" href="https://www.businessinsider.com/massachusetts-millionaires-wealth-tax-wealthy-budget-high-income-earners-irs-2024-5">generated $1.8 billion</a> in the first three quarters of this fiscal year and helps pay for every public school student in the state to have <a target="_blank" class="editor-rtfLink" href="https://www.businessinsider.com/massachusetts-millionaire-tax-gets-kids-free-school-lunches-2023-8">access to free lunch</a>.Voters in Illinois will be faced with a 'yes or no' question on their ballots: "Should the Illinois Constitution be amended to create an additional 3% tax on income greater than $1,000,000 for the purpose of dedicating funds raised to property tax relief?"While the vote results are non-binding, if approved, the measure would send a message to legislators to push for a constitutional amendment.Illinois has the second-highest property taxes in the United States, according to <a target="_blank" class="" href="https://taxfoundation.org/data/all/state/property-taxes-by-state-county-2024/">the Tax Foundation</a>, a tax policy nonprofit.Housing prices in Illinois have also skyrocketed in the last year, especially in Cook County, where Chicago is located.Cook County Treasurer Maria Pappas said in a <a target="_blank" class="editor-rtfLink" href="https://www.cookcountytreasurer.com/newsarticle.aspx?articleid=1877">report </a>that the county's median tax bill increased by more than 19% in the past year, with the biggest increases coming in 15 southern suburbs where taxes soared by 30% or more."Many homeowners are going to be shocked and angry when they get their bills," Pappas said. "South suburban homeowners already pay some of the highest property taxes in the county, and these increases will make paying those bills even more difficult."Former Illinois Gov. Pat Quinn has been an open supporter of the November ballot measure, which he says would help the state's poorest residents."It's hammering a lot of folks who live from paycheck to paycheck, and getting a property tax relief referendum on the ballot is the voice of the people and the voice of the taxpayers," Quinn told WBEZ. "That's the way you win reforms and relief that are long overdue."

Illinois is considering a 3% tax on millionaires to solve the state's skyrocketing property tax problem

<ul class="summary-list"><li>EV stocks fell on Wednesday after a report said President-elect Trump plans to cut EV tax credits.</li><li>The $7,500 tax credit was part of Biden's Inflation Reduction Act, put into place in 2022.</li></ul>Electric vehicle stocks dropped on Wednesday after a report said President-elect Donald Trump's transition team is looking at doing away with the EV tax credit. According to a report from <a target="_blank" class="" href="https://www.reuters.com/business/autos-transportation/trumps-transition-team-aims-kill-biden-ev-tax-credit-2024-11-14/">Reuters</a>, Trump's transition team has drawn up plans to end the $7,500 consumer tax credit for electric vehicle sales as part of broader tax reform legislation.<a target="_blank" class="" href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> stock dropped 5% to $312.20 a share following the report. Shares of <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/rivn-stock">Rivian</a> plunged 12% to $10.57, and <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/lcid-stock">Lucid</a> dropped 3% to $2.11 a share.Ending the tax credit—a key measure included in Biden's 2022 <a target="_blank" class="" href="https://www.businessinsider.com/house-passes-inflation-reduction-act-sending-it-to-biden-2022-8">Inflation Reduction Act</a>—would likely hurt EV sales, but sources told Reuters that Tesla representatives supported ending the subsidy. Tesla CEO Elon Musk has become a strong ally of Trump in recent months, supporting his campaign with sizable donations and spending time with him at his Mar-a-Lago residence.Musk has said previously that while ending federal tax incentives for EV purchases would hurt Tesla sales, the move would be more damaging to Tesla's US EV competitors, including General Motors and Ford. <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/gm-stock">General Motors</a> stock jumped about 1% on Wednesday, while <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/f-stock">Ford</a> shares were about flat.Reuters noted that the tax credit is likely an easy target. Other pieces of the Inflation Reduction Act could be hard to roll back, as the money for many programs has already been distributed. Eliminating the tax credit would likely garner wide support from Republicans and help offset the costs of future tax cuts.

EV makers slide on report Trump wants to scrap EV tax credit

<ul class="summary-list"><li>Cities and counties are voting on property and sales tax hikes to fund childcare.</li><li>Other localities already have similar laws in place, with Alaska taxing marijuana sales to fund early childhood programs.</li></ul>Cities and counties across the US are coming up with ways to make <a target="_blank" class="" href="https://www.businessinsider.com/childcare-costs-presidential-election-scenarios-parents-paid-leave-harris-trump-2024-10">childcare</a> more affordable — and many are turning to <a target="_blank" class="" href="https://www.businessinsider.com/tax-cut-tariff-plan-outlook-presidential-election-scenarios-harris-trump-2024-10">taxes</a>.Three localities are voting to increase taxes to boost childcare funding for low-income and middle-class families.Voters in Sonoma County, California, are deciding whether impose a quarter-cent sales taxes to pay for childcare and early childhood education, as well as resources for children experiencing homelessness or abuse.Residents of Travis County, Texas — which includes Austin — will decide on increasing property taxes by 2.5-cents to broaden access to childcare for low-income families.A similar measure in St. Paul, Minnesota, would also hike property taxes to fund citywide childcare initiatives for low-income families.Using tax revenue to fund childcare isn't a new idea. Local taxes <a target="_blank" href="https://www.edweek.org/leadership/property-taxes-fuel-k-12-budgets-how-well-does-that-work/2022/11">already fund K-12 education</a> in most states — a solution that works for public schools, but can leave early childhood education programs underfunded. Here's what some cities, counties, and states are already taxing to fund childcare.<h2 id="bc6f6fc8-4184-4147-8e7a-ca0eda41d38a">Cities are looking at tax solutions to fund childcare</h2>Some cities have already tried allocating tax revenue to care for infants, toddlers, and preschoolers. In 2022, New Orleans voters backed a property tax increase to fund more than 1,000 childcare seats for low-income families. Because of the referendum, <a target="_blank" href="https://www.nola.com/news/politics/new-orleans-voters-back-early-childhood-education-millage-in-single-issue-vote/article_c792ae0c-c730-11ec-ba3f-272ffa6e0774.html">New Orleans' childcare budget </a>increased to $21 million from $3 million annually for 20 years.Whatcom County, Washington also approved a property tax increase in 2022, which boosted funding by <a target="_blank" href="https://childrensfundingproject.org/wp-content/uploads/Whatcom-campaign-case-study_FINAL.pdf">$10 million</a> for childcare and young families' mental health in the county's annual budget. Other areas have taken the sales tax approach, similar to Sonoma County's ballot measure: Anchorage, Alaska approved in 2023 a marijuana sales tax to fund early childhood programs.Colorado has a policy that allows taxpayers who donate to qualifying child care facilities and programs to claim an income tax credit equal to 50% of their contribution.To be sure, local tax revenue cannot replace funding for America's whole childcare system. St. Paul Council Member Rebecca Noecker said that local policies can complement larger state-level and <a target="_blank" href="https://www.whitehouse.gov/cea/written-materials/2023/11/07/child-care-stabilization/">federal funding pools.</a>Win or lose, Noecker said childcare-related ballot measures raise awareness about childcare access."Now people in St. Paul are talking about childcare in a way that they never were before," she said.

Higher taxes for cheaper childcare? 3 localities are voting on it and we want to hear from you.

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

About 6 crore <keyword id="19948101" type="General" weightage="100" keywordseo="income-tax-returns" source="keywords">income tax returns</keyword> have been filed for income earned in 2023-24, of which 70 per cent were filed under the new <keyword id="22442211" type="General" weightage="20" keywordseo="simplified-tax-regime" source="keywords">simplified tax regime</keyword> which offers lower rate of tax, Revenue Secretary Sanjay Malhotra said on Tuesday. Addressing the post-budget session of PHD Chamber of Commerce and Industry, Malhotra said there were apprehensions as to whether people would shift to the simplified tax regime. "About 6 crore filed for last year and 70 per cent is under the new income tax regime. The whole move has been towards simplicity with the ultimate purpose being to reduce the <keyword id="20380188" type="General" weightage="20" keywordseo="compliance-burden" source="keywords">compliance burden</keyword>," Malhotra said. For the 2022-23 fiscal, 8.61 crore ITRs were filed. The idea behind comprehensive income tax review as announced in the <keyword id="19936553" type="General" weightage="20" keywordseo="budget" source="keywords">Budget</keyword> is to make the tax law simpler. "We will come up with a draft and then we will seek suggestions," Malhotra said. Currently, India has two <keyword id="20155151" type="General" weightage="20" keywordseo="personal-income-tax" source="keywords">personal income tax</keyword> regimes. In the old income tax regime, the <keyword id="20452955" type="General" weightage="20" keywordseo="tax-rates" source="keywords">tax rates</keyword> are relatively high but taxpayers can claim several exemptions and <keyword id="20385232" type="General" weightage="20" keywordseo="deductions" source="keywords">deductions</keyword>. However, in the <keyword id="19935168" type="General" weightage="20" keywordseo="new-tax-regime" source="keywords">new tax regime</keyword>, tax rates are lower but fewer deductions.

About 6 cr ITRs filed for FY24; 70% under new tax regime

<ul class="summary-list"><li>Americans living abroad shouldn't owe taxes on the same income in two countries, Donald Trump said.</li><li>"I support ending the double taxation of overseas Americans," he told The Wall Street Journal.</li></ul>Americans living abroad shouldn't be taxed twice on the same income by two different countries, <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump">Donald Trump</a> said."I support ending the double taxation of overseas Americans," the former president<a target="_blank" class="" href="https://www.wsj.com/politics/policy/donald-trump-tax-plan-americans-abroad-a74bfbdd"> told The Wall Street Journal</a> in a statement.The Republican presidential candidate appeared to endorse residence-based taxation over citizenship-based taxation. The US lays claim to its citizens' global income even if they <a target="_blank" class="" href="https://www.businessinsider.com/digital-nomad-visa-tax-rules-for-traveling-working-remotely-internationally-2023-1">live and work in another country</a>, whereas most developed countries tax income depending on where it's earned.The unusual policy dates back to the 1860s, when lawmakers introduced it to fund the Civil War.Trump has dangled a variety of tax changes to drum up votes as he vies to secure a second term in office by winning the November 5 election. He's<a target="_blank" class="" href="https://www.businessinsider.com/tax-tips-overtime-trump-proposals-income-money-election-2024-10"> suggested</a> eliminating taxes on tips, overtime pay, and Social Security benefits. He already plans to <a target="_blank" class="" href="https://www.businessinsider.com/trump-tax-plan-tarriffs-benefits-top-earners-study-2024-10">extend</a> his 2017 tax cuts, many of which are set to expire in 2025.US tax policy is an annoyance for many Americans living overseas, who can wind up owing US taxes in addition to those they pay in their country of residence. It's worth noting people don't owe anything to the IRS on the first $126,500 they earn abroad, and can receive tax credits for some payments they make overseas. They also have the option of <a target="_blank" class="" href="https://www.businessinsider.com/how-to-renounce-us-citizenship-2018-8">renouncing their citizenship</a>.A shift to taxing Americans based on where they live could spur some <a target="_blank" class="" href="https://www.businessinsider.com/us-millionaires-going-abroad-look-for-american-dream-report-2023-2">wealthy citizens to move</a> to low-tax countries — similar to British and other European expats relocating to places like Dubai or Monaco.Tax policy has become a key talking point in the presidential race, with Vice President Kamala Harris, Trump's Democratic rival, <a target="_blank" class="" href="https://www.businessinsider.com/what-you-need-to-know-about-kamala-harris-opportunity-economy-2024-9">promising tax credits</a> for new parents and first-time home buyers.There were about 4.4 million US citizens living overseas in 2022, and about 2.8 million of those were eligible to vote, according to the latest figures from the Federal Voting Assistance Program."Fellow Americans living abroad, your vote is more important than ever," Trump told the Journal.

Americans living overseas face being taxed twice. Donald Trump wants to change that.

My grandparents' vacation cabin in Lake Tahoe is the stuff of legend.In the '90s, when my parents were just friends, my dad "accidentally" invited himself on a ski trip with my mom and her parents. It was an epic winter when the blizzards created berms as tall as the houses. By the time spring came, my parents were dating.My grandparents' little house in South Lake Tahoe, which they bought for $113,000 in 1984, quickly became a haven for my family.I dreamed of getting married there and taking my own kids to the cabin someday. But in May, my mom called to tell me this could be the last year we have the home.A tax on vacation home-owners might make our place in Tahoe too costly to keep.A measure on the ballot today proposes an annual tax on every property occupied less than 51% of the year. If it passes, second-home owners would owe $3,000 in 2026 and $6,000 every year after.In ski towns and cities across the US, home prices have skyrocketed, and young people struggle to pay rent or buy a house. Meanwhile, the wealthy have flocked to mountain retreats where they can vacation and work from home. One of the measure's architects told BI that it will combat this trend by incentivizing second-home owners to rent to local residents, bringing down the cost of housing by increasing the available supply.Supporters project city revenue gains of $4 million to $8 million in the first year and $10 to $20 million every year after that. The money would go toward rebuilding roads, creating more public transit, and paying the administrative costs of implementation.Framers of the Tahoe tax measure took inspiration from Berkeley, California, which adopted a vacancy tax this year. The Hawaiian island of Oahu and the Colorado ski towns of Aspen, Vail, and Breckenridge are also considering vacancy taxes.But some say it's unclear whether the tax will actually lower housing prices for locals.<div type="image" title="View of the mountains around South Lake Tahoe" height="3279" width="4896" msid="114990171" hostid="261" sizebytes="935262"></div>The opposition in South Lake Tahoe is made up of some of its institutionalized powers, including the local Chamber of Commerce, the South Tahoe Association of Realtors, and the restaurant and lodging associations. In interviews, they told BI that a tax would drive second-home owners away, depriving local businesses of their spending while having no impact on housing affordability for locals. The city's report on the economic outcomes of the tax said it may not actually incentivize homeowners to rent or sell to locals.Some long-timers feel squeezed: How do they afford to live in these places, and what measures would actually fix the problem? Is it a tax — or is it, say, zoning changes that allow more homes to be built?Similar battles over housing affordability are happening across the country. I just happen to have a front-row seat to this one.Since the city of South Lake Tahoe was incorporated in 1965, it's been populated by a healthy mix of year-round and seasonal residents.Middle- and upper-middle-class mountain enthusiasts from the Bay Area flocked to the city, which, with 21,000 residents per the most recent census data, is more densely populated than any other town around the lake.This part of Tahoe has long been a relatively more affordable alternative to the ski havens of Colorado and Utah. As of October 2024, the median sales price for homes in South Lake Tahoe was $750,000, according to Realtor.com. By comparison, it was $958,000 in Park City, Utah, $1.4 million in Aspen, and $1.6 million in Vail."It's one of these places where you have folks from really different socioeconomic backgrounds," said Amelia Richmond, who favors the tax and leads a group of other supporters called Locals For Affordable Housing. "It's one of the reasons I think mountain towns are so cool."But that environment doesn't exist without both year-round and seasonal residents in town. Fifty-six percent of Tahoe's 9,125 housing units are filled by renters, while 44% are owner-occupied, according to the US Census' American Community Survey.Because Measure N will appear on the local ballot, most second-home owners directly affected by the tax can't vote. Nearly half of the property-owning population — my family included — is left watching debates over the tax play out among local residents, who are split on where they stand.<h2 id="90a60f06-f278-4362-9ebf-345a4dac61c6">Locals are divided on the tax</h2>Steve Teshara, who has held several roles, including CEO, at the Tahoe Chamber of Commerce, said the tax would hurt the local economy by driving out second-home owners.He pointed to evidence from a previous measure, which banned Airbnbs and other short-term rentals in certain parts of town. That measure was also intended to stabilize area home prices and rents."It has an immediate effect when visitors are not able to spend as much money or when visitors just aren't here anymore," Teshara said.The previous measure effectively reduced the supply of Airbnbs from 3,350 units in January 2018 to 2,635 units in July 2024, according to the short-term rental data company AirDNA. However, it didn't make the expected dent in housing costs, data from the Realtors' Association shows. Median sale prices continued to increase overall, from $440,000 in 2018 to $750,000 in 2024.<div type="image" title="View of Highway 50 in South Lake Tahoe with a light dusting of snow" height="4153" width="5538" msid="114990167" hostid="261" sizebytes="1763634"></div>Teshara believes the housing crisis must be solved in the long term, pointing to the local government's <a target="_blank" class="" href="https://www.cityofslt.us/2332/Affordable-Housing-Properties-Other-Deve">affordable housing construction projects</a>. He is a fan of indirect measures currently in place, like vanpooling, which shuttles people who live further away — where prices are lower — through the mountains to work.Richmond, the pro-tax organizer, said that business from year-round residents is more important to many shops and restaurants than purchases from occasional visitors."How many beers do you have to buy to make up that difference when you're up just once a quarter?" she said. "Local economies are actually robust when you have a healthy middle class that can spend small amounts of money on a regular basis."<h2 id="139d1f43-575b-4368-9419-52d99a68446e">Taxing second home-owners may not make them rent to locals</h2>The city of South Lake Tahoe conducted an independent study on the tax's economic outcomes if it were to go into effect.The findings supported Richmond's assertion that the measure could modestly boost sales tax revenue if second homes vacated by owners were converted into permanent residences or long-term leases.But the report also cautioned that the measure's impact on housing availability will depend largely on how second-home owners react if the tax is adopted — behavior that's nearly impossible to predict.Second-home owners could sell their properties, like my family is considering. But because of current home prices, buyers would likely be people who don't see an additional $6,000-a-year expense as a deterrent. While the city could collect additional tax revenue from a wealthier population of second-home owners, that wouldn't make it any easier for locals to buy.Homeowners could also decide to rent and become landlords instead of selling, as Richmond hopes. But that may be a longer shot, the city report found.Based on the previous leasing programs in the area, "it appears that financial incentives are not particularly effective to motivate owners of vacant property in South Lake Tahoe to rent out their homes for longer terms," the report said.<div type="image" title="A view of South Lake Tahoe in 1974" height="3458" width="5142" msid="114990163" hostid="261" sizebytes="1062714"></div>Some second-home owners told Business Insider they would refuse to rent to tenants.Sherri Maslyar, who has owned a home in South Lake Tahoe with her husband since 2013 and visits monthly, said she heard a horror story about a neighbor's long-term tenant who defied the landlord's no-pets rule and ruined parts of the house. She said she would rather pay the tax than risk renting her home to someone untrustworthy."That's not what we bought the house for," she said.<h2 id="534b0195-f639-4a7b-8fb1-9c677eca426d">Tahoe's character — and prices — have changed over the years</h2>The median income in South Lake Tahoe grew 65% from $40,972 to $67,686 between 2000 and 2022, according to census data. In the same period, median home prices in the area ballooned by 288%, from $189,000 to $732,500.Zillow's rent data, which only goes back to 2020, shows that typical rents in South Lake Tahoe grew from $2,101.52 in October 2020 to $2,653.05 in October 2023. The typical rent as of September 30 was $2,682.50.The neighborhood where our family's cabin sits was once populated by eclectic A-frames and modest one-story structures, whose kitschy exteriors tended to match the eccentricities of their owners. Now, vaguely chic rustic McMansions with smooth angles and wood finishing are common.<div type="image" title="Line of wooden bears carrying &quot;howdy&quot; and &quot;welcome&quot; signs" height="3435" width="5617" msid="114990174" hostid="261" sizebytes="1760630"></div>Part of why building more houses or apartments — which might stabilize prices — has been so difficult is due to strict development laws. In Lake Tahoe, all development projects must be approved by the Tahoe Regional Planning Association (TRPA), whose primary objective is conservation, not housing construction.Jeff Cowen, TRPA's public information officer, told BI the agency's main goals were environmental, adding that "we have to consider community impacts of our regulations." It doesn't have a stance on the tax.One thing opponents and proponents of Measure N agree on: TRPA's mandate has made it difficult to build new housing in Tahoe to address the housing shortage. But they disagree on whether radical and rapid changes should be made to make Tahoe affordable right now.<h2 id="7b8ad7f8-c9b9-4a00-b5a4-14745b01c7cc">It might be the end of Tahoe as we know it</h2>A place that was once accessible as a seasonal destination for a middle-class family risks becoming a playground for the very rich if changes in the Tahoe market continue to make buying a home there relatively unaffordable.I am benefiting from generational wealth stemming from my grandparents' choices, and I will always be grateful for the investment they made.My family isn't sure what we'd do if the tax passes. One option is to rent to a long-term tenant, but we'd likely lose the freedom to come and go seasonally. Another is to sell the house.<div type="image" title="A middle-aged Asian American couple and their 10-year-old daughter standing in front of an old car in a ski resort parking lot." height="537" width="800" msid="114990172" hostid="261" sizebytes="23164"></div>Either way, we'd be saying goodbye to the home as we've known it for the past four decades.It's hard to imagine giving up my ties to a place that has such emotional value — that is very much the second home my grandparents intended it to be. And if the tax doesn't do what proponents hope it will, I'd be losing Lake Tahoe for nothing.All I can do now is wait and see.

My family bought a vacation home in Lake Tahoe for $113,000. A new tax could push us out. 

<ul class="summary-list"><li>Harris has proposed expanding the small business tax credit from $5,000 to $50,000.</li><li>Experts told BI the proposal would shift the timing of deductions and isn't all that pricey.</li></ul>Patricia Oswlad, 55, and her husband have spent years building up their retirement fund. But when Oswald decided to launch a small business in the fall of 2022, the couple liquidated some of their assets to fund the company, throwing their financial planning to the wind.With fewer than five weeks until Election Day, Vice President Kamala Harris is <a target="_blank" class="" href="https://www.businessinsider.com/kamala-harris-small-businesses-tax-breaks-cut-red-tape-2024-9">making a targeted pitch to entrepreneurs</a> like Oswald, who are burdened by startup expenses. She even mentioned a key proposal in her opening answer at the presidential debate: expand the small business tax credit 10-fold, from $5,000 to $50,000.In a pamphlet on her economic plan, dubbed the <a target="_blank" class="" href="https://www.businessinsider.com/what-you-need-to-know-about-kamala-harris-opportunity-economy-2024-9">"Opportunity Economy,"</a> Harris explains that she would let business owners take advantage of the $50,000 tax deduction right away or a few years after launching, to help lower taxes once they start turning a profit. The proposal, <a target="_blank" class="" href="https://www.businessinsider.com/harris-added-policy-website-before-trump-debate-venture-capital-startups-2024-9">like many of her others</a>, would need <a target="_blank" class="" href="https://www.businessinsider.com/kamala-harris-senate-races-ted-cruz-rick-scott-2024-9">congressional</a> approval.Oswald told Business Insider the credit would have been "invaluable" in getting Brisa Systems, which offers powered drying racks, off the ground.<h2 id="7006e4c2-613d-4eb9-8fc4-ad020faacaad">Harris' proposal shifts the tax timeline for entrepreneurs.</h2>Tax experts told BI that enacting the credit would mean a change in timing more than anything else. Under current law, small businesses can deduct up to $5,000 in expenses immediately and must deduct any future expenses against their income over 15 years. Harris' proposal would let entrepreneurs deduct more money quickly.Owners have expenses before even launching their business, and the deduction would help cover those costs.Rhett Buttle, the co-executive director of Small Business Roundtable and a former business advisor for President Joe Biden, told Business Insider that startup costs accumulate in three primary areas: marketing, basic equipment, and hiring.For Oswald, most early costs have been in manufacturing and intellectual property services. Taylor McCleneghan, who launched her product development company, Small Shop LLC, in 2018, named inventory and marketing as the biggest upfront costs. Both women are based in the Chicago area.<div type="image" title="Kamala Harris at a campaign event about small businesses" height="3439" width="5159" msid="113963121" hostid="261" sizebytes="769310"></div>Brett Theodos, a senior fellow at Urban Institute who specializes in small business loans, told BI that entrepreneurs would "love" to be able to deduct more of those expenses right away. Moving up the timeline would, he said, make many feel less strapped for cash from the very outset.And there's another potential upside, according to Garret Watson, a senior policy analyst at the nonpartisan Tax Foundation. Small businesses would likely benefit from getting the deduction more quickly because of inflation, he said.Many entrepreneurs are psyched about the effort. Theodos struggled to think of a reason why they wouldn't want this, and Buttle said that those he works with are overwhelmingly excited about the plan.McCleneghan, of the Small Shop, said having access to a $50,000 tax deduction early on would have allowed her to do better long-term planning. With the expanded tax deduction, Oswald said she might not have had to divest retirement funds or take out lines of credit."Getting money in the hands of entrepreneurs sooner is going to allow them to hire, to get equipment, to get a space, to pay off some debt, to pay themselves," Theodos said. "So it's meaningful to allow them to accelerate the deduction of startup expenses."But while small business owners may jump at the opportunity for more early cash flow, where this money would come from is more unclear. McCleneghan herself acknowledged that the details seem hazy.<h2 id="af50011b-34e9-4f5e-9a3b-b001ea7f148b">Despite the flashy numbers, the proposal likely wouldn't have a significant impact on the federal budget.</h2>Though $50,000 sounds like a big-ticket promise, the experts BI spoke to said Harris' proposal actually wouldn't make a big dent in the federal budget. The Tax Foundation, where Watson works, examined cost estimates from prior expansions and found that the proposal would cost about $24.5 billion over 10 years."Relative to the federal government's budget and spending, it's very small," Watson said. "This $25 billion number is in the context of a tax plan for the Harris campaign that would raise about $5 trillion over 10 years. So you're talking about orders of magnitude more money on the tax hike side."<div type="image" title="Kamala Harris and Mike Johnson during the State of the Union speech" height="4000" width="6000" msid="113963120" hostid="261" sizebytes="522916"></div>Some of the loss, he said, stems from the likelihood that certain entrepreneurs will use the deduction and then go out of business. Since the proposal changes when businesses can deduct rather than how much they deduct, it will cost some money, but not "big money," Theodos said.And the proposal could help spur growth, if it becomes law. According to a study from the <a target="_blank" class="" href="https://www.pewresearch.org/short-reads/2024/04/22/a-look-at-small-businesses-in-the-us/">Pew Research Center</a> published in April 2024, small businesses employ nearly half of the country's private sector employees.Theodos called small businesses "essential" for the US economy, and Buttle said they're a<a target="_blank" class="" href="https://www.businessinsider.com/harris-sec-ftc-khan-gensler-crypto-regulation-biden-warren-2024-9"> crucial source of innovation</a>. But the tax experts said the full potential economic impact of the proposed expansion is still up in the air."The question is, will this significantly contribute to a startup boom or really change the needle there or move the needle there? I think that's a reasonable question. It's up for debate, particularly because this is such a narrow provision," Watson told BI, while noting that giving businesses deductions is generally a good policy.If the policy did spur more development, though, Mary Hansen, an economics professor at American University and co-director of the nonpartisan Institute for Macroeconomic and Policy Analysis, said it would eventually have a net positive impact on government revenue.As of now, Harris' promise is just that — a promise.Should she win the election, Congress would need to pass legislation to turn her expanded tax deduction idea into a reality. Despite the prevailing congressional gridlock, all of the experts BI spoke with said small businesses are a rare point of potential bipartisan agreement. Watson predicted that lawmakers would likely tie the proposal to their actions on the expiring 2017 tax provisions.<div type="image" title="Kamala Harris and Doug Emhoff go shopping to support Small Business Saturday" height="3788" width="5973" msid="113963117" hostid="261" sizebytes="2365956"></div>Should Congress ever pass the expanded tax deduction, all startups and small businesses would access the same amount of money — but the experts told BI that some would feel the impact more than others. Entrepreneurs with less initial cash flow would disproportionately benefit from the change, they said.Buttle said it would help women and people of color who have a harder time accessing capital. The Pew Research study found 61% of small businesses are majority-owned by men and, as of 2021, 85% were majority-white owned."We're talking about community businesses, micro-businesses, businesses where the founder doesn't have as much net worth," Theodos told BI. "Everybody can benefit from $45,000, but the question is, who is that making the critical difference for?"

Kamala Harris' tax plan for small businesses sounds like it will cost a lot of money — it won't 

<keyword id="19906778" type="General" weightage="20" keywordseo="Infosys" source="keywords">Infosys</keyword> says that the Karnataka State authorities are withdrawing the pre-show cause <keyword id="19951327" type="General" weightage="20" keywordseo="GST" source="keywords">GST</keyword> notice issued to Infosys with a tax demand of Rs 32,403 crore, the company informed the exchange in a filing on Friday, "The Company has received a communication from Karnataka State authorities, withdrawing the pre-show cause notice and has directed the Company to submit a further response to DGGI central authority on this matter," said Infosys Earlier on Wednesday the Karnataka State GST authorities issued a pre-show cause notice to Infosys for payment of GST of Rs. 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of <keyword id="19916185" type="General" weightage="20" keywordseo="Infosys-Limited" source="keywords" meta.keywordsubtype="org" meta.entityname="Infosys Limited" meta.hostid="345" meta.entityid="Infosys Limited">Infosys Limited</keyword>. The Company responded to the pre-show cause notice and stated that the Company believes that as per regulations, GST is not applicable to these expenses. "Additionally, as per a recent Circular (circular number 210/4/2024 dated June 26, 2024) issued by the Central Board of Indirect Taxes and Customs on the recommendations of the <keyword id="19994390" type="General" weightage="20" keywordseo="gst-council" source="keywords">GST Council</keyword>, services provided by the overseas branches to Indian entity are not subject to GST," said the company. The clarification from Infosys came post news articles published on Wednesday for non-payment of GST towards expenses incurred by the overseas branches of the Company. Infosys said GST payments are eligible for credit or refund against the Infosys says that the Karnataka State authorities are withdrawing the pre-show cause GST notice issued to Infosys with a tax demand of Rs 32,403 crore, the company informed the exchange in a filing on Friday, "Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter," the statement said. (ANI) SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/ola-electric-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112185870.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/ola-electric-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112185870.cms" target="_blank">Ola Electric IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-plus-with-dimensity-7350-pro-chipset-launched-in-india-starting-at-29999/articleshow/112164963.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-plus-with-dimensity-7350-pro-chipset-launched-in-india-starting-at-29999/articleshow/112164963.cms" target="_blank">Nothing Phone (2a) Plus with Dimensity 7350 Pro chipset launched in India starting at ₹29,999</a><a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-decline-by-2-in-q2-2024-xiaomi-retakes-the-throne/articleshow/112162312.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-decline-by-2-in-q2-2024-xiaomi-retakes-the-throne/articleshow/112162312.cms" target="_blank">Indian smartphone shipments decline by 2% in Q2 2024, Xiaomi retakes the throne</a>

Infosys says Karnataka govt withdrawing pre-show cause notice on GST notice

<ul class="summary-list"><li>Subsidies that help 19 million people pay for health insurance in ACA marketplaces could expire.</li><li>KFF found that the enhanced subsidies saved the average enrollee roughly $700 annually.</li></ul>Vice President Kamala Harris and former President Donald Trump have offered conflicting <a target="_blank" class="" href="https://www.businessinsider.com/what-us-economy-would-look-like-with-trump-biden-presidency-2024-5">visions</a> for how they'd shape the economy if they won office, but one policy has received little attention: the <a target="_blank" class="" href="https://www.businessinsider.com/biden-expanding-obamacare-without-congress-health-coverage-2022-4">Affordable Care Act</a>.According to a <a target="_blank" class="" href="https://www.kff.org/affordable-care-act/issue-brief/inflation-reduction-act-health-insurance-subsidies-what-is-their-impact-and-what-would-happen-if-they-expire/#:~:text=As%20a%20candidate%20in%202020,the%20ACA%20Marketplaces%20have%20existed.">report</a> published on July 26 by KFF, a nonprofit health policy group, a key component of the Affordable Care Act introduced during the pandemic is set to expire in 2025, and millions of Americans could see price hikes in their <a target="_blank" class="" href="https://www.businessinsider.com/how-get-medical-bills-reduced-negotiate-challenge-payment-plan-2024-9">healthcare premium payments</a> as a result.When buying healthcare coverage through the ACA marketplace, people can qualify for premium tax credits, which aim to make health insurance payments more affordable. In 2021, the <a target="_blank" class="" href="https://www.businessinsider.com/biden-to-sign-19-trillion-american-rescue-plan-on-thursday-2021-3">American Rescue Plan Act</a> introduced subsidies that expanded eligibility for premium tax credits to enrollees with incomes 400% above the <a target="_blank" class="" href="https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines">federal poverty line</a> — which is $60,240 for one individual and $124,800 for a family of four. In 2022, the <a target="_blank" class="" href="https://www.businessinsider.com/house-passes-inflation-reduction-act-sending-it-to-biden-2022-8">Inflation Reduction Act</a> extended those subsidies through 2025.According to KFF, these enhanced subsidies or premium tax credits caused a surge in enrollment in the ACA marketplace. Since 2021, <a target="_blank" class="" href="https://www.kff.org/affordable-care-act/state-indicator/marketplace-enrollment/?currentTimeframe=0&amp;sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D">enrollment</a> in the ACA marketplace has increased roughly 79%, to 21.4 million from about 12 million.Additionally, of the 21.4 million enrolled in the ACA marketplace since 2021, 92% qualify for the premium tax credits, according to KFF.If those enhanced subsidies expire next year, roughly 19 million Americans will face double-digit or triple-digit increases in their premium payments, Cynthia Cox, a vice president at KFF, told Business Insider. KFF also found that the enhanced subsidies cut consumers' costs by about 44%, saving the average enrollee $700 annually if they remain intact.For example, KFF found that a 45-year-old earning $25,000 annually could see their annual premium payment for a benchmark silver plan — which is a standard low-cost healthcare plan — increase from $160 with the enhanced premium tax credits to $1,077 without the subsidies.On September 25, Sen. Jeanne Shaheen and Sen. Tammy Baldwin <a target="_blank" class="" href="https://www.shaheen.senate.gov/shaheen-baldwin-introduce-legislation-to-make-affordable-care-act-premium-tax-credits-permanent-lowering-costs-for-millions-of-americans">introduced</a> the Healthcare Affordability Act — a bill that would make permanent the enhanced subsidies extended by the Inflation Reduction Act. Rep. Lauren Underwood <a target="_blank" class="" href="https://underwood.house.gov/media/press-releases/underwood-and-shaheen-introduce-legislation-permanently-lower-health-care">introduced</a> an identical bill in the House.The bills would have to pass both the House and Senate and then be signed into law by the president to come into effect. However, it's <a target="_blank" class="" href="https://www.washingtonpost.com/health/2024/09/25/aca-health-plan-subsidies/">unclear when a decision</a> on the tax credits will be reached.<h2 id="710b8e9b-579e-4347-a6f8-612949a5af72">Federal subsidies drove enrollment in the ACA marketplace</h2>Cox said that low-income individuals have driven the ACA enrollment surge. Since 2020, there has been a 115% increase in low-income individuals — with incomes up to 2.5 times the federal poverty line — enrolled in the ACA Marketplace."We've seen really substantial growth in the number of people signing up for ACA coverage since these subsidies became available," Cox said.Additionally, enrollment has been driven by Black and Latino people, helping decrease disparities in health insurance, according to Claire Heyison, a senior policy analyst at the Center on Budget and Policy Priorities. According to <a target="_blank" class="" href="https://www.cbpp.org/research/health/health-insurance-costs-will-rise-steeply-if-premium-tax-credit-improvements-expire">CBPP</a>, people of color made up the majority of ACA marketplace enrollees in 2023 for the first time.Cox said that the enhanced subsidies make it so people earning just above the poverty level pay "next to nothing" for their monthly premium. Before the enhanced subsidies were enacted, an enrollee earning just above the poverty level would have to pay about 2% to 3% of their income for a benchmark silver plan, Cox said."That might not sound like a lot, but for someone who's making just above poverty, they really don't have a lot of discretionary income to spend," Cox said. "Then it becomes a question of what sacrifices would they make to be able to afford the coverage."If the enhanced subsidies expire, many of those low-income enrollees will be priced out of coverage, Cox said. What's more, households with incomes just above 400% of the federal poverty line will become ineligible for the premium tax credits.Additionally, 52% of enhanced subsidies from the Inflation Reduction Act have been directed toward enrollees in the South, according to KFF. Florida has received 22% of funding, while Texas has received 16%, and Georgia and North Carolina 7%, each, according to KFF.<h2 id="0fdefe70-b4db-441b-8d2a-e89a87ec6a25">The election could shape the future of enhanced premium tax credits</h2>The November election could determine the future of the enhanced subsidies.If Trump wins, Cox said it's all but sure the enhanced subsidies will expire.If Harris wins and Democrats win the House and Senate, Cox said the enhanced subsidies will likely be extended.Yet, Cox said it's important to recognize that Congress might end up with a split House and Senate, meaning it'd be difficult to pass a bill."There's a pretty significant chance that there's going to be a divided power in Washington, and then it's really anyone's guess what happens to these subsidies, but it would probably be an uphill battle to renew them," Cox said.Republican lawmakers who want the subsidies to expire cite the extensive cost. The Congressional Budget Office <a target="_blank" class="" href="https://www.cbo.gov/system/files/2024-06/60437-Arrington-Smith-Letter.pdf">estimates</a> that the premium tax credits will cost taxpayers $335 billion over the next 10 years.Additionally, the Congressional Budget Office estimates that 3.8 million people could become uninsured if the enhanced subsidies expire, according to <a target="_blank" class="" href="https://www.reuters.com/business/finance/rate-us-uninsured-rise-89-next-decade-congressional-budget-office-says-2024-06-18/#:~:text=Enhanced%20subsidies%20for%20plans%20introduced,the%20expiration%20of%20marketplace%20subsidies.">Reuters</a>."That would be followed by subsequent years of more people dropping coverage," Cox said.Cox said many Americans aren't grasping what's at stake for healthcare in the 2024 election. She said that's largely due to how complicated healthcare policy can seem."People may not fully appreciate how integral these enhanced subsidies are now," Cox said. "If they went away, the original Affordable Care Act subsidies would still be in place, but these enhanced subsidies had such a tremendous impact on the ACA marketplaces that I think if they're allowed to expire, these would be the biggest increases in premium payments that this market has ever seen."Are you enrolled in the Affordable Care Act marketplace? Do you qualify for enhanced premium tax credits Please reach out at <a target="_blank" class="" href="mailto:jtowfighi@businessinsider.com">jtowfighi@businessinsider.com</a>.

Millions of Americans could lose out on more than $700 in healthcare benefits if Congress doesn't keep these tax credits

<ul class="summary-list"><li>Democratic Senators asked Merrick Garland for a special counsel investigation into Clarence Thomas.</li><li>They seek to probe Thomas's ethics and the "serious possibility" of tax fraud from undeclared gifts.</li></ul>Two Democratic senators have called on Attorney General Merrick Garland to open a special counsel investigation into <a target="_blank" href="https://www.businessinsider.com/clarence-thomas-dissent-domestic-violence-gun-ruling-originalism-2024-6">Clarence Thomas</a>.in a <a target="_blank" href="https://www.whitehouse.senate.gov/wp-content/uploads/2024/07/2024-07-03-Letter-to-AG-Garland-re-Special-Counsel-FINAL.pdf">letter</a> released Tuesday, Sens. Sheldon Whitehouse of Rhode Island and Ron Wyden of Oregon requested a probe into potential federal ethics violations and the "serious possibility" of <a target="_blank" href="https://www.businessinsider.com/harlan-crow-yacht-trips-justice-clarence-thomas-tax-report-2023-7">tax fraud</a> by the Supreme Court Justice.Thomas has faced increasing scrutiny over his personal and financial ties to billionaires like right-wing megadonor Harlan Crow, who has treated the justice to lavish international trips, gifts, and tuition for Thomas's grand-nephew, <a target="_blank" href="https://www.businessinsider.com/clarence-thomas-mark-martin-raised-nephew-son-jailed-2024-5">Mark Martin</a>, to attend expensive boarding schools.In August of last year, Thomas updated his 2022 <a target="_blank" href="https://www.businessinsider.com/harlan-crow-clarence-thomas-new-financial-disclosure-flights-scotus-2023-8">financial disclosures</a> to include previously undeclared gifts and vacations from Crow."We do not make this request lightly," the senators wrote: "The evidence assembled thus far plainly suggests that Justice Thomas has committed numerous willful violations of federal ethics and false-statement laws and raises significant questions about whether he and his wealthy benefactors have complied with their federal tax obligations. Presented with opportunities to resolve questions about his conduct, Justice Thomas has maintained a suspicious silence."A spokesperson for Whitehouse directed Business Insider to a press release about the letter, which indicated Whitehouse has for more than a year called for the Judicial Conference to investigate Justice Thomas's "omissions of <a target="_blank" href="https://www.businessinsider.com/clarence-thomas-harlan-crow-supreme-court-documentary-rvs-walmart-2023-4">billionaire-funded gifts</a> and income from his legally required annual financial disclosure reports."A representative for Wyden, the chairman of the Senate's Committee on Finance, told Business Insider that the committee released a <a target="_blank" href="https://www.finance.senate.gov/chairmans-news/justice-thomas-did-not-repay-substantial-portion-of-267230-loan-finance-committee-investigation-reveals-failed-to-report-forgiven-debt-on-ethics-filings-raising-questions-about-tax-compliance">staff memo</a> in October detailing that Thomas had never reported he'd received forgiveness on a $267,230 loan on his ethics forms, which prompted questions about his tax compliance.Following months of the committee's repeated requests for an explanation from Thomas and his attorney that went unanswered, the spokesperson said requesting a formal investigation was the necessary next step.A spokesperson for the Justice Department declined to comment on the letter when reached by Business Insider.Representatives for the Supreme Court did not immediately respond to a request for comment. Thomas has previously denied any wrongdoing, arguing gifts from Crow and others fall under a "<a target="_blank" href="https://www.businessinsider.com/trips-justice-clarence-thomas-took-with-harlan-crow-2024-6">personal hospitality exemption</a>," meaning they don't require disclosure.

Senators ask DOJ to investigate 'serious possibility of additional tax fraud' by Clarence Thomas

New Delhi: The <keyword id="19903456" type="General" weightage="20" keywordseo="income-tax-department" source="keywords">income tax department</keyword> has notified the <keyword id="21803475" type="General" weightage="100" keywordseo="Cost-Inflation-Index" source="keywords">Cost Inflation Index</keyword> for the current fiscal beginning April 2024, for calculating <keyword id="20584761" type="General" weightage="20" keywordseo="long-term-capital-gains" source="keywords">long-term capital gains</keyword> arising from sale of immovable property, securities and jewellery. The Cost <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">Inflation</keyword> Index (CII) is used by <keyword id="20081991" type="General" weightage="20" keywordseo="taxpayers" source="keywords">taxpayers</keyword> to compute gains arising out of sale of capital <keyword id="19975917" type="General" weightage="20" keywordseo="assets" source="keywords">assets</keyword> after adjusting inflation. The CII for <keyword id="19910979" type="General" weightage="20" keywordseo="financial-year" source="keywords">financial year</keyword> 2024-25, relevant to assessment year 2025-26, stood at 363, as per a notification of the Central Board of Direct Taxes (<keyword id="19980145" type="General" weightage="20" keywordseo="CBDT" source="keywords">CBDT</keyword>). The CII number for last fiscal was 348 and for 2022-23 financial year it was 331. Moore Singhi Executive Director Rajat Mohan said the CII reflects the inflation in the economy, which causes the prices of goods and services to increase over time. The index for the following financial year, 2024-25, has been updated to 363, marking an increase of 15 points, which corresponds to an annual inflation rate of approximately 4.3 per cent. "This is consistent with the retail inflation rate of 4.83 per cent recorded in April 2024. Taxpayers usually prefer a higher CII as it allows them to claim larger tax rebates," Mohan said. AKM Global Partner-Tax Sandeep Sehgal said the index is useful to adjust the capital gains for inflation, so that the taxpayers are taxed on real appreciation of the assets and not the gains due to inflation. "Taxpayers can use this to calculate gains for long-term capital assets sold during FY 24-25 and reduce the tax liability accordingly," Sehgal said. CII is notified under the Income-tax Act, 1961 every year. It is popularly used to calculate "indexed cost of acquisition", while calculating capital gains at the time of sale of any capital asset. Normally, an asset is required to be retained for more than 36 months (24 months for immovable property and unlisted shares, 12 months for listed securities) to qualify as 'long-term capital gains'. Since prices of goods increase over time resulting in a fall in the purchasing power, the CII is used to arrive at the inflation adjusted purchasing price of assets so as to compute taxable long-term capital gains (LTCG).

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