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TaxBuzz Top 5 - FL Politician Proposes Wildly Controversial 50% 'Sin Tax,' Gov. Newsom Comes Out Swinging Against Billionaire Tax & More

by
Rebekah Barton
on
1/16/2026
TaxBuzz Top 5 - FL Politician Proposes Wildly Controversial 50% 'Sin Tax,' Gov. Newsom Comes Out Swinging Against Billionaire Tax & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world. 

1. Proposed Florida “Sin Tax” On OnlyFans Income Ignites Fierce Free-Speech, Tax, & Fairness Debate

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Credit: PeskyMonkey/Getty Images

A Republican candidate for Florida governor has ignited controversy by proposing a 50 % “sin tax” on income earned by OnlyFans creators, a plan that has sparked fast and fierce legal, economic and cultural debate over taxation, personal freedom and how governments should treat new forms of work. 

Gubernatorial hopeful James Fishback says he wants to impose the steep tax on OnlyFans earnings to discourage participation in the adult-content economy and raise revenue for public education and school lunches if elected. He described the site as “an online degeneracy platform” and framed the tax as a moral and economic deterrent to what he sees as exploitative behavior. Critics say targeting income from a legal business in this way raises serious constitutional and fairness issues, especially since Florida currently has no state income tax or clear legal authority to single out one industry.

Top OnlyFans creator Sophie Rain — who has publicly noted she pays substantial federal taxes on her earnings — slammed the idea as “the dumbest thing I’ve ever heard,” arguing that creators use the platform to support their families and that the proposal unfairly singles out a specific group. She also questioned why subscribers, not just creators, aren’t targeted if the goal is behavioral discouragement. Her firm rebuttals have driven a social-media firestorm and elevated the tax debate beyond a fringe campaign proposal.

The backlash has spread online, with many commentators calling the proposal misogynistic, punitive, and potentially unconstitutional, noting the difficulty of taxing content creation differently than other digital or entertainment income.

2. Georgia Gov. Kemp Proposes $1 Billion Tax Rebates, Income Tax Cut, & New Need-Based Scholarship Initiative

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Credit: Walter Bibikow/Getty Images

In his final State of the State address, Georgia Governor Brian Kemp unveiled a broad tax and budget package that would return roughly $1 billion to taxpayers through one-time rebates, accelerate a reduction in the state income tax rate, and launch a new need-based scholarship program for college students as lawmakers begin the 2026 legislative session.

Under the plan, individuals could receive $250 rebates and joint filers up to $500, funded from Georgia’s robust surplus reserves and rainy-day funds. Kemp also proposed cutting the state’s flat income tax from about 5.19 % to 4.99 %, moving toward long-standing goals of lower rates and reduced tax burdens for residents.

Beyond rebates and rate cuts, the governor called for significant new funding for a Georgia DREAMS Scholarship, a need-based aid program aimed at expanding access to higher education, particularly for lower-income students, a departure from Georgia’s traditionally merit-focused scholarship model.

Supporters argue that rebates and tax cuts will put more money in the pockets of hardworking Georgians and stimulate economic activity. Critics, however, caution that one-time rebates have limited impact on long-term affordability and urge more structural investments in child care, health care, and workforce support.

The proposals now head to the Georgia General Assembly, where budgeting and tax committees will weigh the rebate timeline, rate cut mechanics, and scholarship funding levels as part of broader fiscal negotiations this session.

3. Newsom Doubles Down Against California Billionaire Tax Amid Budget Pressures And Political Fallout

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Credit: Brandon Bell/Getty Images

California Governor Gavin Newsom has taken a firm public stance against the proposed 2026 Billionaire Tax Act, a high-profile ballot initiative that would impose a one-time 5 % levy on residents with net worth over $1 billion, telling supporters and critics alike that the measure could damage the state’s economy and prompt wealthy residents and capital to flee if enacted.

Newsom, who cannot directly block a citizen-initiated ballot measure if it qualifies for the November 2026 ballot, has nonetheless campaigned vocally against it, warning that such a levy could undercut California’s financial stability by shrinking the tax base that funds essential public services like schools and health care. Opponents of the tax say wealthy taxpayers are already relocating assets to states like Florida and Texas amid tax-policy uncertainty, and that adding a retroactive wealth tax could accelerate that trend, a prospect Newsom cites as part of his broader economic argument.

The governor’s opposition reflects a growing rift within the Democratic Party: progressive advocates and some lawmakers argue the tax could raise billions to offset cuts to social programs, while Newsom and centrist allies caution that the economic risks outweigh the potential revenue. His stance also comes as health and budget advocates push him to identify new revenue sources to backfill federal funding gaps without relying on the wealth tax.

This ongoing fight continues the tax policy stories we’ve been tracking, including last week’s TaxBuzz roundup — where we highlighted competing views on tax credits, IRS readiness, postal postmark changes and other emerging issues.

4. Detroit Homebuyers Hit With Nearly $20K Property Tax Bill, Spotlighting Broader Tax Issues for New Owners

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Credit: pawel.gaul/Getty Images

A Detroit couple who purchased their first home — a $465,000 duplex in the Motor City's Midtown neighborhood — received a stunning $19,686 property tax bill for 2025 that exceeds their original down payment and highlights how local tax assessment rules can dramatically amplify costs for new homeowners. After applying the Primary Residence Exemption (PRE), their bill dropped to about $17,268, but even that amount far outpaces what many expected and raises red flags about housing affordability in the city.

The steep tax burden stems from Michigan’s “uncapping” rule, which resets a property’s taxable value to its current market value after a sale, rather than allowing it to remain near historically low levels as long-time owners enjoy. In this case, the taxable value jumped sharply compared with what the previous owner had been assessed, triggering a much larger bill than the couple saw coming when they bought the property.

The situation has sparked significant online discussion from potential homebuyers and Detroit residents about how property taxes affect decisions to move to or stay in the city, including comparisons with taxes in suburbs and other states, calls for tax reform, and proposals like local sales taxes or entertainment taxes to diversify revenue sources.

5. India’s Top Court Rules Against Mauritius Tax Treaty Shelter In Tiger Global Case — A Landmark Ruling With Global Tax Implications

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Credit: Tuul & Bruno Morandi/Getty Images

In a major international tax ruling, India’s Supreme Court held that U.S. investment firm Tiger Global must pay capital-gains tax on its $1.6 billion sale of a Flipkart stake to Walmart, rejecting Tiger Global’s claim that it was exempt under the India–Mauritius double-taxation treaty. The decision overturns a lower-court ruling and signals a significant shift in how India interprets treaty benefits for cross-border deals.

The case centered on whether profits from the 2018 transaction, routed through entities in Mauritius — historically a low-tax conduit for investments into India — should qualify for treaty-based exemptions. India’s Supreme Court agreed with tax authorities that the structure was used to avoid Indian tax and lacked substantive commercial purpose, giving New Delhi broader leeway under anti-avoidance rules to deny treaty benefits.

That matters far beyond this single deal. For decades, the India–Mauritius treaty helped channel billions of dollars in foreign investment into South Asia by allowing capital gains to be taxed at the investor’s home jurisdiction rather than in India. The ruling undermines treaty certainty and could push investors to reassess how they structure cross-border deals, affecting markets from private equity to multinational acquisitions.

Legal and tax experts say this is a landmark precedent: it reinforces sovereign taxing rights, signals that treaty “shopping” may no longer shield gains without real economic substance, and could influence other countries’ treaty interpretations and anti-avoidance applications.

Which headline this week most interests you?

Feature Image Credit: Softulka/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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