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 Kozi Checks & Balances TaxTactics News 
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January 09.2026
2 Minutes Read

Wyoming Data Center Investment: A Competitive Edge That’s in Danger

Historic Wyoming government building on a sunny day, illustrating architectural beauty.

Wyoming Leads the Charge in Data Center Investment

In an unforeseen twist, Wyoming, a state known more for its vast plains than technology hubs, is emerging as a front-runner in data center investment. Recent highlights reveal that while California may boast a greater number of data centers—326 to Wyoming's 15—the Cowboy State outstrips its coastal counterpart when comparing per capita ratios. With 2.55 data centers per 100,000 residents compared to California's meager 0.83, Wyoming is positioning itself as an attractive location for tech giants.

The Ingredients for Success

So, what’s fueling this surprising trend? A combination of factors makes Wyoming a prime location—they include a cool climate, low disaster risk, and a favorable tax environment. The state's sound policies encourage businesses to invest; for example, it offers competitive sales tax exemptions for data center equipment. This strategic advantage helps places like Cheyenne beckon significant players in the tech industry, including Microsoft and Meta, who are investing billions into the region.

The Risks of Inaction

However, this success story is at a crossroads. If Wyoming were to introduce sales taxes on machinery and equipment purchases for data centers, it could negate its competitive edge. These taxes could create an unfavorable business environment, putting local companies at a disadvantage against their out-of-state counterparts. The tax implications for such capital-intensive operations must be carefully evaluated to ensure that Wyoming’s emerging reputation isn’t compromised.

A Future Built on Innovation

Looking forward, Wyoming’s growth as a data center powerhouse hinges on its ability to continue attracting such investments. By focusing on enhancing infrastructure and fostering workforce development, Wyoming can ensure that it remains a key player in the data center industry. With projected energy demands from artificial intelligence and big data to soar in the coming years, the state stands at a pivotal moment—one that could decisively shape its economic landscape.

As residents and leaders alike take stock of these developments, prioritizing strategic fiscal policies can pave the way for long-lasting benefits. The ongoing evolution of Wyoming’s energy resources and technology sectors might just make it a beacon of innovation for generations to come.

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02.21.2026

Supreme Court Ruling on Tariffs: What This Means For American Businesses

Update Supreme Court Delivers Groundbreaking Tariff RulingOn February 20, 2026, the Supreme Court made a historic decision that sent ripples through the economic landscape by ruling that President Donald Trump acted beyond his authority in imposing tariffs using the International Emergency Economic Powers Act (IEEPA). This move has been described as a significant blow to Trump's economic policies and a key moment in the balancing of powers between the presidency and Congress.The Impact of the Ruling on American TaxpayersThe verdict effectively nullified Trump's IEEPA tariffs, which had amassed over $160 billion since their inception and projected to generate an astonishing $1.4 trillion from 2026 through 2035. By striking down these tariffs, the Supreme Court has shielded taxpayers from a substantial tax increase while preventing a long-term contraction in the U.S. economy estimated at 0.3 percent, reflecting concern around additional burdens on households and businesses that would have arisen from higher costs on imported goods.What Are IEEPA Tariffs?The tariffs in question included various border security and fentanyl initiatives targeting imports primarily from China, Mexico, and Canada, with rates ranging from 10% to 35%. These measures were unprecedented, marking the first usage of IEEPA for imposing tariffs, raising questions about the limits of presidential powers under emergency conditions. As Chief Justice John Roberts noted, there was no explicit statute allowing such tariff authority to be wielded without clear congressional consent.Voices from the Business CommunityThe ruling has been met with relief from various business owners who argued that the tariffs constituted unlawful overreach. Victor Schwartz, a New York-based importer, summed it up perfectly when he described the tariffs as “arbitrary and unpredictable,” praising the court for recognizing them as unconstitutional. Many businesses and small manufacturers, part of lawsuits against the government, are eager to secure refunds for tariffs already paid and restore financial stability.What Lies Ahead for U.S. Trade?While the Supreme Court’s ruling marks a temporary victory for economic principles and fairness, uncertainties linger. Trump has hinted at pursuing alternative avenues under different trade laws, leading analysts to speculate about upcoming policies. The landscape may still shift as the Biden administration faces challenges in navigating its own trade strategies while grappling with a divided public opinion regarding tariffs and trade.The Supreme Court's decision highlights the ongoing importance of checks and balances within our government. For citizens and business owners alike, staying informed is crucial as we navigate these changes together. The economic landscape is adapted not just by rulings in court but by active participation and engagement in community discussion about what our trade policies mean for our everyday lives.

02.20.2026

Navigating Alternative Tobacco Product Taxes: What to Expect This Year

Update Changing Landscape of Tobacco Products In 2026, consumers can expect a surge of choices in alternatives to traditional tobacco products. With a notable departure from combustible cigarettes, oral pouches, vapes, and heated tobacco products (HTPs) are now receiving approval from the Food and Drug Administration (FDA) for sale in the U.S. This shift represents a significant change in how nicotine is consumed, with newer products promising reduced harm compared to conventional cigarettes. The Challenge of Taxation This newfound accessibility comes with complex considerations for taxation. While states have established rules for taxing cigarettes, the emergence of alternative tobacco products (ATPs) complicates matters. Many ATPs, such as e-cigarettes and oral pouches, do not contain tobacco, thus falling outside the traditional tax framework. HTPs, which do contain tobacco, pose their own challenges as state governments weigh the implications of taxing less harmful alternatives at the same rate as more harmful products. Current State of Tax Legislation As we enter 2026, many states are contemplating or enacting new tax bills focused on ATPs. For instance, Delaware Governor Matt Meyer has proposed increasing taxes on vapor products to $0.10 per milliliter. Meanwhile, Nebraska’s LB 1238 seeks to standardize the excise tax across various nicotine products at 30% of wholesale costs, potentially marking a tax hike for ATPs. New York is also working to expand its definition of OTPs, which could lead to notable tax increases for modern oral pouches. Funding Public Health Initiatives Increasing taxes on tobacco products not only contributes to state revenues but can also play a crucial role in funding essential public health programs. A report highlighted the benefits of raising tobacco taxes by $1.50 per pack, projecting that states could collectively prevent hundreds of thousands of youths from starting to smoke and help millions of adults quit. Moreover, the revenue generated could support programs aimed at educating the public about the risks of tobacco use. Future Predictions for ATP Taxation The landscape of alternative tobacco product taxation is poised to evolve rapidly as states adapt to these new products. Policymakers are encouraged to consider tiered tax structures that reflect the relative harm of different products, which could incentivize consumers to make healthier choices. As the market for ATPs continues to grow, aligning tax policies with public health goals will be essential for minimizing the health risks associated with tobacco use. The discussions surrounding ATP taxation are critical in shaping a healthier future. Engaging in these conversations can lead to more informed and balanced public policies that address both revenue generation and health improvements.

02.19.2026

Exploring European Geoeconomics: The Future of International Tax Policy

Update Understanding Geoeconomics: Europe's Strategic Shift As the world grapples with complex economic challenges, Europe is navigating its own path under increased pressure from global powers. In a recent speech, European Commission President Ursula von der Leyen stated the necessity for Europe to adopt a 'new mindset' in response to economic coercion from nations like China, Russia, and the U.S. This reflects a shift towards leveraging Europe’s geoeconomic weight, encouraging a more cohesive approach to international trade and tax policy. The Impact of Geoeconomics on International Relations This new era of geoeconomics highlights the interplay between economic strategy and international relations. The EU aims to redefine its policies to influence global standards, seen through initiatives like the Carbon Border Adjustment Mechanism (CBAM) and digital services taxes (DST). These policies are not just protective measures but are strategically designed to reshape global economic interactions to align with European standards, encouraging other nations to adopt similar frameworks. Challenges and Opportunities Ahead However, Europe's ambitions face significant challenges. The reaction from the United States, particularly under recent administrations, has often involved threats of tariffs and retaliatory measures against perceived unfair treatment of American companies. This tension raises a critical question: Is the cost of implementing such a geoeconomic strategy outweighed by its potential benefits? The path forward requires balancing these strategies with the realities of their economic impact on consumers and businesses within Europe. The Need for Renewed Focus on Domestic Growth As von der Leyen emphasized, Europe must also prioritize its internal economic health. A renewed commitment to strengthening domestic economies could provide the foundation necessary for a robust external strategy. By ensuring that local industries thrive, Europe can better position itself on the global stage. This intertwined relationship between domestic prosperity and international influence is crucial in crafting future tax policies that work for all member states. Final Thoughts on Geoeconomic Policy In conclusion, Europe’s journey towards employing its geoeconomic power offers valuable lessons for both policymakers and economists. As countries maneuver through rising tensions and shifting alliances, the focus should ultimately be on sustainable growth that benefits local communities and strengthens the transatlantic relationship. By acknowledging the interconnectedness of domestic and international economies, Europe can lead in redefining what it means to play a dominant role in global economics. If you are interested in understanding how these developments in European geoeconomics could affect international tax policies and trade relationships, stay engaged with ongoing discussions and analyses in this dynamic field.

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