GOP skeptical about using tariffs to offset TCJA extensions. Bloomberg Law reports Republicans are hesitant to use tariffs to offset the $4.6 trillion cost of extending major provisions of the Tax Cuts and Jobs Act next year. Speaking at a Bloomberg Government event, GOP lawmakers, including Rep. Adrian Smith (R-NE) and Sen. Ron Johnson (R-WI), voiced concerns about relying on tariff revenue, citing their potential to disrupt free trade and undercut revenues by raising domestic prices. Republican leaders continue to weigh funding alternatives for what will likely be a multi-trillion-dollar fiscal package.
TPC and other experts weigh Trump’s tax proposals and congressional challenges. Earlier this week, TPC and the Brookings Institution hosted two panels of experts to analyze the economic and political implications of President-elect Trump’s tax proposals. During the campaign, Trump suggested sweeping changes, including extending the 2017 Tax Cuts and Jobs Act, expanded tariffs, tax reductions on tips and overtime pay, and changes to Social Security benefit taxes. Panelists discussed the feasibility of these ideas, the likelihood of congressional support, and what changes Trump could enact through executive orders. You can watch the event here.
Wisconsin introduces charging tax for electric vehicles. Starting Jan. 1, 2025, Wisconsin will impose a 3-cent per kilowatt-hour tax on electric vehicle charging to help fund road repairs, the state’s Department of Revenue announced. The tax aims to assure all drivers contribute to infrastructure costs—not just drivers paying a gas tax.
Denmark finalizes first-ever tax on agricultural emissions. After months of negotiations, Denmark has finalized plans to implement the world’s first tax on agricultural emissions, including methane from livestock. Starting in 2030, farmers will pay 300 kroner ($43) per ton of methane emissions, rising to 750 kroner by 2035, as part of the country’s Green Tripartite Agreement. Backed by a broad parliamentary majority, the measure aims to help Denmark meet its ambitious climate goals while balancing input from farmers, industry groups, unions, and environmental advocates.
India ends tax exemption for salaries of Catholic nuns and priests. Catholic education officials plan to appeal the Indian Supreme Court’s recent decision to end a decades-old income tax exemption for nuns and priests working in government-aided Catholic schools. The Nov. 7 ruling reversed a policy in place since 1944, which recognized the clergy’s “service to society” by exempting their salaries from taxation. Father Xavier Arulraj of the Tamil Nadu Catholic Bishops’ Council expressed disappointment with the verdict and vowed to challenge it, citing its impact on religious workers in Tamil Nadu and Kerala.
Correction: In yesterday’s email newsletter, the fourth item referenced the “IRS Free File” program. The item should have referred to the IRS Direct File program; the online version was subsequently corrected.
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