Crunch time for the GOP’s tax megabill, and the math is only getting harder. Senate Republicans’ tax plan could cost $4.2 trillion, according to a new estimate from the Joint Committee on Taxation. Politico reports the new figure excludes any additional cost from a potential SALT deal, which could push the price tag even higher. House Republicans say they won’t support more than $4 trillion in tax cuts unless paired with more than $1.5 trillion in spending cuts.
The “revenge tax” just got smaller. The Senate’s version of the One Big Beautiful Bill Act would generate only $52.2 billion over 10 years from the Section 899 “revenge tax,” down from $116.3 billion in the House bill. The lower score is due in part to a one-year delay in implementation and changes in the structure of the provision, which targets countries with tax regimes deemed discriminatory to the US. TaxNotes reports some experts warn that the tax could hurt US businesses and foreign investment.
Child Tax Credit proposals still leaving low-income children behind. Both the House and Senate versions of the GOP’s tax bill would increase the maximum child tax credit ($2,500 temporarily in the House and $2,200 permanently in the Senate) and index it for inflation. But TPC’s Elaine Maag shows that neither proposal would help the 17 million children in low-income families who receive less than the full benefit under current law.
Student loan tax break: A perk for the few? The GOP’s tax bill would extend a tax-free student loan repayment benefit, allowing employees to use up to $5,250 in tax-free compensation to pay off loans,. This would cost the federal government $11 billion over 10 years. But research by TPC’s Adam Looney and his colleague Lauren Andrade shows the benefit mostly helps high-income professionals at large employers, not the borrowers most in need. Only 3 percent of workers in the lowest income quartile have access, compared to 9 percent of the highest earners. Alternative reforms, such as improving income-driven repayment plans, could better target struggling borrowers.
A “Taylor Swift tax” in Rhode Island? Sort of. Rhode Island’s new budget proposal includes a surcharge on second homes worth more than $1 million if left empty more than half the year, unofficially dubbed the “Taylor Swift tax” after the pop star who owns the Watch Hill mansion in the state. The surcharge would add $2.50 for every $500 in value over the $1 million threshold. Swift’s $17.75 million estate could incur an additional $136,000 in taxes annually if it qualifies. The state is also proposing a 63 percent increase in the conveyance tax on home sales, raising concerns from realtors about affordability and housing market stability, reports NewsNation.
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