The TCJA’s future could depend on the budget baseline. As large portions of the Tax Cuts and Jobs Act of 2107 (TCJA) near expiration, TPC’s Elena Patel explains how federal budgeting baselines influence the cost of extending its provisions. Using the “current law” baseline, the TCJA extension could reduce federal revenue by almost $5 trillion over a decade. Conversely, a “current policy” baseline assumes the tax cuts remain in place, making their extension appear cost-neutral. Patel examines the tradeoffs between the baseline options and how they may shape the legislative debate over these expiring tax cuts.
Expanding the Child Tax Credit could alleviate hardship for low-income families. A new Urban Institute analysis highlights that over 70 percent of low-income families with children experience material hardship, such as food insecurity. The report explains how an expanded child tax credit (CTC) can mitigate these challenges as policymakers consider the CTC’s future during debates over expiring TCJA provisions.
Post-pandemic revenue swings give state policymakers a reason for caution. State personal income tax revenue is stabilizing after pandemic-induced volatility, but TPC’s Lucy Dadayan warns that new tax cuts could increase fiscal risk. Many states have enacted income tax rate reductions since 2021. With the potential expiration of federal tax provisions in 2025 and ongoing market fluctuations, state policymakers face heightened uncertainty in managing their budgets.
Disney challenges Orange County property taxes in Florida. Walt Disney World has filed 13 lawsuits disputing $98 million in property taxes for 2024, alleging inflated assessments by the Orange County property appraiser. The lawsuits claim improper valuation methods that include income from operations like restaurants and shops, which Disney argues violates Florida tax laws. Similar lawsuits by other Florida resorts are ongoing.
Chicago property tax hike proposal scrapped. Chicago Mayor Brandon Johnson (D) has removed a $68.5 million property tax hike from his latest budget proposal after opposition from City Council members. The revised plan relies on efficiency measures and delayed debt payments but faces calls for additional cuts. The city must pass a budget by Dec. 31.
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