Our Scans · (FS.6.03) Taxation · Weekly Summary

• [New] President Trump has threatened to impose a 100% tariff on goods from any country that imposes a digital services tax that effects U.S. companies. Passle
• [New] Repealing federal clean-vehicle tax credits and EPA tailpipe standards could sharply slow EV adoption, reducing EV sales by about 30% in 2027 and 40% in 2030 relative to a 2025 policy baseline. Brookings
• [New] Musk's track record of environmental conflicts at other sites he owns, from California to Texas to Germany, means the Memphis community is skeptical of SpaceX, despite the economic benefits the tax revenue and potential water-treatment plant could bring. Wired
• [New] By imposing a reasonable excise tax on the energy used by data centers, families could recoup some of the gains of AI, while America continues to stay competitive in the AI race. Senator Elizabeth Warren
• U.S. retail sales increased more than expected in May, with households boosting purchases of motor vehicles even as they paid more for gasoline, but a slowdown is likely as the cushion from larger tax refunds against higher prices diminishes. Hawaii Tribune-Herald
• Takeaway: Most Californians pay an effective California tax rate of 4% to 7%, far below the top marginal rate people often fear. Paycheck Calculator California
• The long-overdue property tax reform is the clearest example, as imposing one while home prices are still falling would intensify negative wealth effects and risk accelerating the very price declines Beijing is trying to arrest. Asia Society
• China's Ministry of Finance plans to accelerate legislation for a local surtax and advance the consumption tax law in 2026.The moves, outlined in a ministry report released Monday, reflect efforts to give local authorities more stable and autonomous revenue sources amid ongoing fiscal pressure. Emerging Market Skeptic
• Illinois will begin taxing capital gains from certain qualifying small-business stock sales by decoupling from a federal tax exemption, generating an estimated $50 million to $60 million, and will impose a 15% tax on fantasy sports contest revenues, projected to raise $5 million. ISACo
• The SFY 2027 Illinois budget package includes an estimated $815 million to $1.4 billion in new revenue, generated through a combination of tax increases, new fees, and one-time fund transfers. ISACo
• Iowa HB 2757 creates a new sale and use tax exemption for tangible personal property, digital products and services sold to nuclear electric generating facilities and establishes a nuclear energy workforce fund to support workforce programs within institutions of higher education. National Conference of State Legislatures
• Hawaii joined the race to the top of state income tax rates, and a new Bloomberg Economics analysis warns that UK wealth tax proposals risk undermining growth for little additional revenue-underscoring the global tension between taxing the wealthy and retaining the tax base. Family Enterprise USA
• The introduction of substance-based tax incentives and Pillar Two Safe Harbour was seen as positive by survey respondents, with 38% expecting to see new tax incentives emerge as a result and 57% expecting existing incentives to remain valuable for their business. The Global Legal Post
• 40% of businesses see a rising tax compliance burden as the biggest issue for their business, with 84% expecting more public tax disclosures in the next two to three years. The Global Legal Post
• In Kansas, supporters see data centers as an opportunity to garner local tax revenue and high-wage construction jobs. Business Insider
• A new Polish law will impose a high excise tax, flavour bans, and a whole host of other fresh restrictions on nicotine pouches, driving smokers away from using them to quit cigarettes. New Eastern Europe
• Emerging markets India: India grew 5% in Q4, with volumes of 4%, with growth reflecting a step up in performance and recovery post Goods and Services Tax related disruption. MarketScreener

Last updated: 08 July 2026