WASHINGTON DIGS OUT, CONGRESS CANCELS EVERYTHING. Washington is still barely functioning after winter storm Jonas dumped nearly two feet of snow on the District, and that means no work in the House and the Senate. The Senate Budget Committee announced Monday that they will be canceling a Tuesday hearing on the CBO long-term budget outlook. The committee has not yet announced when that meeting will be rescheduled.
BUT THE CBO IS STILL PLANNING TO RELEASE THE REPORT. The snow won’t stop the Congressional Budget Office from releasing their budget outlook on Monday. The official budget scorekeeper released a summary of the report last week, and staff informed reporters on Sunday evening that the full report is still expected to be released at 2 p.m. The summary released last week included projections that the deficit will increase next year, and the full report is expected to give more details.
The early report blamed tax changes in the $1 trillion year-end tax and spending deal that passed Congress last month for most of the increase, but the team at the Committee for a Responsible Federal Budget points out, spending on Medicare and Social Security are also to blame.
CRITICS BASH GOOGLE’S BRITAIN TAX DEAL. Last week, Google announced that it will pay $185 million in back taxes to the British government as part of a broader tax agreement, but many critics say the tech company is getting away with a cheap deal that could undermine British tax policy. The Guardian has more:
Under a deal which will keep it clear of the diverted profits tax, Google has agreed to pay tax on an element of future revenues from UK advertisers as well as on profits. However, the company will be able to keep taxes low by continuing to book advertising deals with UK clients through its international headquarters in Ireland.
Tax expert Richard Murphy, who was a prominent backer of Jeremy Corbyn’s leadership campaign, estimates that Google should be paying £200m a year in corporation tax, based on the firm’s declared profit margins and sales 2014 sales in Britain of £4.5bn.