A TurboTax Settlement, An EU Minimum Tax

Intuit to pay $141 million settlement over its misleading ads for “free” filing. New York’s attorney general announced TurboTax parent Intuit will pay $141 million to customers it attracted with promises of free tax-filing but who ended up paying for services. Intuit will suspend TurboTax’s “free, free, free” ad campaign and pay restitution to about 4.4 million taxpayers. 

Yellen: EU will agree to global minimum tax this spring. In an interview with The Wall Street Journal (paywall), the Treasury Secretary was optimistic about a forthcoming deal, even as the Administration struggles to get Congress to agree to a parallel US levy. Yellen also warned the economic outlook is “very uncertain. The dangers at the global level are high. I do worry about commodity prices, I am worried about spillovers from Russia and Ukraine that can have adverse impacts not just on the US…but on Europe, on emerging markets.” 

Fed raises interest rates by half-point. It is the largest rate hike since 2000 and will be combined with steps to start selling off the Fed’s $9 trillion asset portfolio. While additional interest rate hikes are a near-certainty, Fed chair Jay Powell said he did not expect the central bank would need to adopt 0.75 percent rate hikes. 

Who’s the real victim when tax policy becomes a culture wars weapon? TPC’s Tax Hound considers what happens when state policymakers punish businesses that disagree with lawmakers’ favored social policies. What happens when those actions conflict with the vital job of collecting sufficient tax revenue to operate government and balance a budget? Taxpayers could end up as collateral damage.

Rubio wants to ban abortion-related and other tax breaks for companies. The Florida Republican introduced a bill to prohibit employers from receiving tax breaks for expenses related to “interstate abortion” or employees’ children’s “gender transition procedure” costs. 

Tune in at noon today for your TPC Prescription with NASBO’s Brian Sigritz. Many states are using budget surpluses to cut taxes, despite a potentially weakening economic and fiscal outlook. The director of state fiscal studies at the National Association of State Budget Officers will talk with TPC’s Howard Gleckman about how states’ budget plans could change with the economy. Register and watch here at noon today. 

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].