Government Regulation

July 7, 2020

ACC Responds to CA DTSC Notice

ACC: Spray Foam Coalition responds to California DTSC’s notice on SPF Abridged AA Report

The California Department of Toxic Substances Control (DTSC) on 30 June 2020 issued a “notice of deficiency” on the Abridged Alternative Analysis Report on Two-component Low- and High-pressure Spray Polyurethane Foam Systems Containing Unreacted Methylene Diphenyl Diisocyanates (MDI).

The American Chemistry Council (ACC) issued the following statement in response, which may be attributed to Lee Salamone, Senior Director, ACC Center for the Polyurethanes Industry (CPI).

“ACC is disappointed by DTSC’s decision to issue a ‘notice of deficiency’ on the Abridged Alternative Analysis Report (the Report). The Report concludes that there are no technically or economically feasible alternatives to spray polyurethane foam (SPF) systems containing unreacted MDI — a position that the industry has maintained since this process started in 2014. It is important to note that a ‘notice of deficiency’ represents another step in the regulatory process and is not a final decision on the safety of SPF or on the Report. Accordingly, the ACC Spray Foam Coalition (SFC) will coordinate with regulated entities as they revise their company-specific reports and resubmit for consideration. Californians can continue to rely on SPF to meet their energy efficiency needs.

“Health and safety are top priorities for the SPF industry. SPF insulation is well-studied and is subject to robust regulatory controls and stewardship programs. It is an effective and proven building material with a 40-year track record of success when installed by a trained professional contractor.

“SPF insulation offers exceptional thermal insulation and air sealing performance. California is a leader in climate policy and should promote SPF as one solution to climate change. Using SPF to insulate and air seal buildings can help California meet its energy efficiency and climate change goals, as well as move the state forward on its strategic plan for zero net energy buildings.”

https://polyurethane.americanchemistry.com/
https://www.gupta-verlag.com/news/industry/24279/acc-spray-foam-coalition-responds-to-california-dtscs-notice-on-spf-abridged-aa-report

June 17, 2020

SBA and Treasury Announce EZ PPP Form

SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

Washington—Today, the U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020.  In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers.  Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period.  These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

Click here to view the EZ Forgiveness Application.

Click here to view the Full Forgiveness Application.

https://home.treasury.gov/news/press-releases/sm1036

June 17, 2020

SBA and Treasury Announce EZ PPP Form

SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

Washington—Today, the U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020.  In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers.  Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period.  These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

Click here to view the EZ Forgiveness Application.

Click here to view the Full Forgiveness Application.

https://home.treasury.gov/news/press-releases/sm1036

June 17, 2020

Tax Migration

Progressive Tax States Lose People, Income To Flat And Zero Income Tax States

Submitted by Ted Dabrowski and John Klingner via Wirepoints.org,

Flat and no-income tax states, as a group, are beating out progressive tax states in the contest for people and their incomes, according to the last decade of IRS migration data analyzed by Wirepoints.

The nation’s seventeen flat and no income tax states won a net 1.9 million residents and $120 billion in Adjusted Gross Income (AGI) from progressive tax states during the 2000-2018 period. That’s nearly a 4 percent AGI gain for the flat and no income tax states, based on their 2010 base of $3.3 trillion in AGI. A table with the individual winners and losers over the time period is provided below.

The net gains in AGI not only bolster the tax base the year in which they come in, but they also help all subsequent years. The gains pile up on top of each other, year after year.

That means the country’s flat and zero income tax states, as a group, have accumulated $490 billion in AGI since 2010 from the nation’s progressive tax states, adding vibrancy, investment and tax revenues to the winning states.

States don’t change their income tax schemes often, so when they do, it’s a big deal. The change pits those who favor progressive taxes against those who want a flat tax or no income tax at all. Eight states don’t tax income at all in the U.S., while ten states have flat income taxes. Thirty-two states have some form of a progressive tax scheme.

Connecticut was the last state to move to a progressive tax structure in 1996, while North Carolina (2013) and Kentucky (2018) changed to a flat tax more recently.

Now some Illinois politicians want to abandon the state’s flat tax in favor of a progressive income tax. They argue, among other things, that higher taxes will bring more stability and people to the state.

But the movement of people and wealth across the country tells a different story.

The accumulated pattern over the past nine years is pretty clear. People are moving from progressive tax states to flat and zero income tax states. Of course, people move for a whole host of other reasons beside taxes: jobs, housing, family, weather, retirement, corruption, etc. Taxes are only one reason. But for many people, they are a big one.

The wealth accumulation by the flat and zero-income tax states is all the more impressive considering there were just 17 such states (not including Kentucky) compared to 33 progressive tax states.

Total gains

The $120 billion total is the net transfer between the two groups of states. In terms of individual total wealth gained from migration, zero and flat income tax states make up seven of the top ten winners of net domestic migration.

Florida, a state with no income tax, has been the biggest winner by far. The Sunshine State has gained nearly a million net people and over $95 billion in AGI from other states since 2010.

Zero-tax Texas is up next with a gain of $31 billion in AGI, followed by North Carolina with $16 billion. Two progressive tax states, Arizona and South Carolina are next, then non-progressive Washington, Colorado, Nevada and Tennessee. Progressive tax Oregon rounds out the top 10.

In contrast, the list of top losers is filled with progressive tax states. New York is the worst in the country; it has lost a net $55 billion in AGI to other states since 2010. Illinois, where politicians want to join the ranks of progressive-tax states, is next with a net loss of over $34 billion. Progressive tax California, New Jersey, Connecticut and Ohio are next. Flat tax states Massachusetts and Pennsylvania along with progressive Maryland and Virginia round out the top ten losers.

The gains and losses states have experienced since 2010 aren’t trivial. Winning states have, on average, seen net AGI gains from other states equal to 10 percent of their 2010 base AGI. Once again, Florida takes the top spot with an in-migration gain equivalent to 20 percent of its 2010 AGI. Progressive tax South Carolina is next with a gain of 16.1 percent, followed by Texas with 15.7 percent.

Illinois, meanwhile, lost the equivalent of 10 percent of its 2010 AGI to other states, the 2nd-worst loss in the nation behind Alaska.

What all this shows is that progressive tax states, if they’re attractive in other ways, can still win people and their incomes. And it shows that a flat tax state like Illinois can lose people if it’s corrupt, mismanaged and financially crippled.

So no, taxes aren’t everything. But add a progressive tax scheme to the nation’s most mismanaged, most-indebted, near-junk-rated and highest taxing state in the country and you’re asking for trouble.

Just follow the money.

https://www.zerohedge.com/markets/progressive-tax-states-lose-people-income-flat-and-zero-income-tax-states

June 17, 2020

Tax Migration

Progressive Tax States Lose People, Income To Flat And Zero Income Tax States

Submitted by Ted Dabrowski and John Klingner via Wirepoints.org,

Flat and no-income tax states, as a group, are beating out progressive tax states in the contest for people and their incomes, according to the last decade of IRS migration data analyzed by Wirepoints.

The nation’s seventeen flat and no income tax states won a net 1.9 million residents and $120 billion in Adjusted Gross Income (AGI) from progressive tax states during the 2000-2018 period. That’s nearly a 4 percent AGI gain for the flat and no income tax states, based on their 2010 base of $3.3 trillion in AGI. A table with the individual winners and losers over the time period is provided below.

The net gains in AGI not only bolster the tax base the year in which they come in, but they also help all subsequent years. The gains pile up on top of each other, year after year.

That means the country’s flat and zero income tax states, as a group, have accumulated $490 billion in AGI since 2010 from the nation’s progressive tax states, adding vibrancy, investment and tax revenues to the winning states.

States don’t change their income tax schemes often, so when they do, it’s a big deal. The change pits those who favor progressive taxes against those who want a flat tax or no income tax at all. Eight states don’t tax income at all in the U.S., while ten states have flat income taxes. Thirty-two states have some form of a progressive tax scheme.

Connecticut was the last state to move to a progressive tax structure in 1996, while North Carolina (2013) and Kentucky (2018) changed to a flat tax more recently.

Now some Illinois politicians want to abandon the state’s flat tax in favor of a progressive income tax. They argue, among other things, that higher taxes will bring more stability and people to the state.

But the movement of people and wealth across the country tells a different story.

The accumulated pattern over the past nine years is pretty clear. People are moving from progressive tax states to flat and zero income tax states. Of course, people move for a whole host of other reasons beside taxes: jobs, housing, family, weather, retirement, corruption, etc. Taxes are only one reason. But for many people, they are a big one.

The wealth accumulation by the flat and zero-income tax states is all the more impressive considering there were just 17 such states (not including Kentucky) compared to 33 progressive tax states.

Total gains

The $120 billion total is the net transfer between the two groups of states. In terms of individual total wealth gained from migration, zero and flat income tax states make up seven of the top ten winners of net domestic migration.

Florida, a state with no income tax, has been the biggest winner by far. The Sunshine State has gained nearly a million net people and over $95 billion in AGI from other states since 2010.

Zero-tax Texas is up next with a gain of $31 billion in AGI, followed by North Carolina with $16 billion. Two progressive tax states, Arizona and South Carolina are next, then non-progressive Washington, Colorado, Nevada and Tennessee. Progressive tax Oregon rounds out the top 10.

In contrast, the list of top losers is filled with progressive tax states. New York is the worst in the country; it has lost a net $55 billion in AGI to other states since 2010. Illinois, where politicians want to join the ranks of progressive-tax states, is next with a net loss of over $34 billion. Progressive tax California, New Jersey, Connecticut and Ohio are next. Flat tax states Massachusetts and Pennsylvania along with progressive Maryland and Virginia round out the top ten losers.

The gains and losses states have experienced since 2010 aren’t trivial. Winning states have, on average, seen net AGI gains from other states equal to 10 percent of their 2010 base AGI. Once again, Florida takes the top spot with an in-migration gain equivalent to 20 percent of its 2010 AGI. Progressive tax South Carolina is next with a gain of 16.1 percent, followed by Texas with 15.7 percent.

Illinois, meanwhile, lost the equivalent of 10 percent of its 2010 AGI to other states, the 2nd-worst loss in the nation behind Alaska.

What all this shows is that progressive tax states, if they’re attractive in other ways, can still win people and their incomes. And it shows that a flat tax state like Illinois can lose people if it’s corrupt, mismanaged and financially crippled.

So no, taxes aren’t everything. But add a progressive tax scheme to the nation’s most mismanaged, most-indebted, near-junk-rated and highest taxing state in the country and you’re asking for trouble.

Just follow the money.

https://www.zerohedge.com/markets/progressive-tax-states-lose-people-income-flat-and-zero-income-tax-states