Taxes

As Democratic leaders prepare to bring healthcare legislation before the full House and Senate for votes this month, they soon must decide who will be taxed to pay for expanding coverage -- the wealthy or the insurance companies. Legislation emerging from the House would slap a surtax on upper-income people. But many Democrats, especially in the Senate, fear the political fallout over voting to raise anyone's income taxes. The most prominent Senate bill would impose a tax on insurance companies that provide expensive policies, sometimes dubbed "Cadillac" plans.

Dear California, I've been thinking about this for a very long time, and I've come to the conclusion that we should go our separate ways. I thought I loved you and it would last forever, but I was so very wrong. I know that our relationship has lasted 50 years and that we should fight to stay together, but you've changed so much that, frankly, I don't know who you are anymore! When we first met I was young and rather naive, and I loved you unconditionally. I spent years running with abandon across your sandy beaches in the bright sunshine, playing in your beautiful parks and attending your top-rated schools, which were a national model for the other states.

With its gleaming Vegas Strip and stucco sprawl, Nevada has portrayed itself as a model of the civilized West. But every so often, such as Tuesday, holdovers from its boisterous beginnings show up at the Capitol -- and they are named Chicken Ranch, Pussycat Ranch and Shady Lady. Here's Nevada's dirty little secret: Many lawmakers would like to keep the state's legal brothels a dirty little secret.

The Center for Science in the Public Interest believes that many states might be able to close gaps in their budgets by placing a tax on soda and other sugary drinks. The health advocacy group released a study this week that estimates budget-strapped states -- including California -- could generate a combined $10 billion a year by levying a tax of 7 cents per 12-ounce can of Coke or other beverage. Currently, 25 states impose special taxes on sugary drinks. The group, which is lobbying for such taxes and has suggested a national excise tax on sugared drinks, said raising the price of the beverages would reduce consumption.

Online travel websites have been ordered to pay Anaheim $21 million in hotel taxes that officials say they are owed, but the companies are fighting back against the increasingly common claim that they have shortchanged cities from Los Angeles to Las Vegas. The fight in Anaheim is the latest in an escalating debate between online travel companies and tourist-dependent cities.

The Obama administration is digging deep into the tax code to find ways to help pay for its ambitious plans to cut taxes for middle-income families and small businesses while also overhauling the nation's healthcare system. The Treasury Department plans to raise $58 billion in taxes over the next 10 years -- targeting mainly securities dealers, life insurance firms and large estates -- and to close $210 billion in tax loopholes for multinational corporations.

That tax credit provided by the federal stimulus package may come just in time -- to pay for new levies imposed by the state of California. A single person making less than $75,000 a year would take home an additional $400 per year under the federal plan passed by Congress, and a couple making less than $150,000 would get $800.

For years tobacco companies have successfully fought off attempts by California lawmakers and health groups to increase the cigarette tax. But next month, as the state grapples with the worst financial crisis in recent history, that may change. Lawmakers will consider a proposal to hike cigarette taxes by $1.50 per pack and raise $1.2 billion annually. During the last decade, cigarette makers have spent tens of millions of dollars to kill 14 straight attempts to make smokers pay more.

As signals of a weakening economy grow louder, the Bush administration and congressional Democrats are considering new measures, including a fresh round of tax cuts, designed to stave off recession. But while both sides of Washington's policy debate appear to favor some kind of tax-cut package to spur economic growth, there is little sign that they are near agreement on what kind of cuts should go to whom.

If enthusiasm can get a subway built, the long-sought underground rail line from downtown Los Angeles to the Pacific gained a modicum of momentum Thursday after a day-long meeting of leaders focused on getting the $7-billion project built after decades of inaction, study and lots of, well, talk.