SEMI-DAILY BBB UPDATE: If the chatter over Democrats trying to clinch a big fiscal package reached a fever pitch last weekend, then the temperature of the talks is decidedly more lukewarm right now.

There looks to be a variety of reasons for that, including just how much the bipartisan gun control talks have dominated proceedings on Capitol Hill recently.

So lets see what happens this week: Sen. Joe Manchin (D-W.Va.) and Senate Majority Leader Chuck Schumer again discussed a potentially narrower version of what was once called the Build Back Better agenda last week, though neither said anything to suggest an agreement was close to being reached.


That might be because Manchin and Schumer simply wont be able to reach an agreement, and all that chatter in recent weeks was overblown plus dont forget, gun control looks likely to be the prevalent issue for lawmakers for awhile still.

And yet: Democrats will continue to talk, they still have a bit of time and the contours of a potential deal would still seem to be not that far out of reach.

MORE ON EVERYTHING IN A BIT, but first thanks for coming to the school years over already? version of Weekly Tax.

A metaphor for those never-ending BBB talks? You decide: Today marks 127 years since Émile Levassor, a key figure in the development of the auto industry in France, came in first in whats considered to be the first car race heading from Paris to Bordeaux and back, all in just over two days (or around 15 miles per hour).

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GETTING DOWN INTO THE WEEDS: One of the pretty big deals that Democrats could accomplish by passing a budget reconciliation measure is updating the U.S.s international tax system in the process putting it more in line with the global tax deal that President Joe Bidens administration helped strike last year with some 140 countries.

With that in mind, the Hamilton Project at the Brookings Institution and the Tax Law Center at New York University are out with a new paper today that tries to break down what needs fixing in the international tax system and the various proposals to do so.

Those issues include that U.S. multinationals pay a single-digit effective rate on worldwide income, that corporate revenues are at historically low levels and that American corporations remain keen on profit shifting, according to the authors, Wendy Edelberg, Chye-Ching Huang and Rose Jenkins.

The authors also argue that good things will happen if the U.S. plows ahead with both pillars of that global tax deal negotiated through the Organization for Economic Cooperation. The likely outcome is a playing field that is more level for US multinational corporations and that will lead to higher US tax revenue, they write.

But of course, thats not a fully consensus view.

Rohit Kumar of PwC, a former top aide to Senate Minority Leader Mitch McConnell, has a list of counters to the new papers assertions. (Hell also be on a panel this afternoon on this topic, along with Huang; Kimberly Clausing, who just left Treasury; and Jason Furman, a former top economic aide in the Obama White House.)

Those rebuttals include that the paper understates the effective tax rates paid by American multinationals, overstates the amount of profit shifting going on and that corporate revenues are on the rise right now.

Kumar also noted that the U.S. already has a global minimum tax in place, one of the two pillars of the OECD agreement, even if the rate is lower than whats envisioned in that deal.

In fact, no other country has something like the levy on Global Intangible Low-Taxed Income, so there would be disadvantages if the United States proceeds unilaterally to increase the GILTI tax burden on U.S. companies before other countries have enacted foreign minimum taxes of their own.

TIME FLIES ETC.: Hard to believe, but were closing in on four years since the Supreme Court issued its ruling in South Dakota v. Wayfair a decision that gave states more power to tax sales from out-of-state companies and rolled back roughly a half-century of precedent.

More than couple years might have passed since that 5-4 decision from the justices, and every state with a sales tax has now passed a law allowing for collection on remote sales from companies without a physical location in that state.

Those states also have enacted laws that force online platforms, like the marketplace on Amazon, eBay and Etsy, to collect the sales tax when it acts as the middleman between buyer and seller.

And yet, businesses and lawmakers are still trying to get a full grasp on the new sales tax landscape.

The Senate Finance Committee is even holding a hearing on the matter on Tuesday, with a particular focus on the Wayfair decisions impact on small businesses. (Not for nothing: Senate Finance Chair Ron Wyden is from Oregon, one of just a handful of states without a sales tax, which makes him more of a skeptic of the ruling than lots of other Democrats.)

Avalara, a company that makes sales tax software, is out today with new findings after surveying hundreds of businesses about the aftermath of Wayfair after these four years.

Among the interesting findings: Larger companies are far more aware of those marketplace facilitator laws than smaller outfits, and more likely to say those measures have a big impact on their business.

Theres some logic to that one big reason those laws exist is to make sales tax collection easier for smaller sellers, after all.

On the flip side, smaller companies have never been more likely to say theyre fully compliant with all the various Wayfair-related laws and regulations, while the opposite is true for larger businesses.

And theres some logic to that, too smaller companies might believe that, but they also might not be aware of everything theyre supposed to know.

Around the World

WHATEVER IT TAKES, APPARENTLY: Pakistan is looking to hike taxes and cut spending as it seeks to secure bailout funds from the International Monetary Fund. But as Reuters notes, the governments budget that goes into effect next month will cause a variety of hardships. Finance Minister Miftah Ismail announced Friday that anyone making at least 30 million rupees a year, or around $147,000, would face an extra 2 percent in income taxes. Pakistan will also take a harder line on tax evasion, in an effort to boost revnues by about one-fifth, while also raising taxes on banks and increasing rates on both capital gains and withholding. All told, the tax hikes could help Pakistan raise an extra 80 billion rupees in the first year, or around $392 million.

And yet: Ismail said over the weekend that the IMF still had some concerns about Pakistans budget, including over fuel subsidies and wanting the government to raise more in direct taxes. Still, the finance minister said the government is confident they can make the changes needed to restart the bailout funding, as Reuters also noted.

Around the Nation

NO, FOR A SECOND TIME: For the second time in short order,Gov. Gretchen Whitmer of Michigan has vetoed income tax cuts sent over by the GOP legislature, the Detroit Free Press reported. The Democratic governor also augmented her argument for rejecting a reduction in Michigans income tax rate for the second time in three months. This time, Whitmer said the legislature might have run afoul of the state constitution with the fast-track maneuvers it used to enact the tax cuts. Back in March, the governor said that the GOP tax cuts were fiscally reckless and would hurt important state initiatives. The Republican tax plan would have cut the states income tax rate from 4.25 percent to 4 percent a touch above the 3.9 percent passed in March at an overall cost of $2.5 billion, while also creating a child tax credit and expanding ther personal exemption. Whitmer has her own plan for tax cuts, which includes expanding eligibility for the state Earned Income Tax Credit, and still a few weeks to see if a compromise can be struck with Republicans.

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Quick Links

Former Treasury Secretary Larry Summers: Raising taxes, including paring back the GOPs 2017 tax cuts, can help battle inflation.

WSJ: High Oil and Gas Prices Test Drive a Global Carbon Tax.

Bloomberg: Turkey Doubles Transaction Tax on Consumer Loans to 10%.

Did you know?

Ray Harroun had an average speed of almost 75 miles per hour in winning the first Indianapolis 500 in 1911.