Crapo to fast-track nomination of Scott Bessent. Incoming Senate Finance Committee Chair Mike Crapo (R-ID) plans to expedite the confirmation of President-elect Donald Trump’s nominee for Treasury secretary, Scott Bessent, reports Tax Notes (paywall). Bessent, a business leader and Trump campaign economic adviser, is expected to focus on preserving the expiring provisions from the 2017 Tax Cuts and Jobs Act of 2017 (TCJA) and shaping other pro-growth tax policies.
Republicans still at odds over when to extend Trump-era tax cuts. House and Senate Republicans are still debating whether to include the extension of the TCJA in the first or second of two anticipated reconciliation bills during 2025. Some lawmakers warn that delaying the tax cut extension until later in the year could jeopardize its passage, leaving Republicans with little time to act before the TCJA expirations kick in. Others argue that prioritizing border and defense spending in the first bill simplifies the legislative hurdles.
Republican lawmakers urge Trump to end Direct File. This week, a group of 29 House Republicans, in a letter published by Tax Notes (paywall), urged President-elect Trump to issue an executive order to terminate the IRS Direct File pilot program. Critics of Direct File argue that the program—rolled out in 12 states thus far—is inefficient, costly, and represents government overreach. They instead want to promote private-sector Free File options and improve IRS customer service.
Missouri GOP pushes for a flat tax to zero out the state’s income tax. Missouri Republicans are proposing a 4 percent flat tax and the eventual elimination of the state’s income tax, according to the Missouri Independent. The plan includes a constitutional amendment capping state spending and expanding sales taxes to services. Critics warn that removing the income tax, which provides 65 percent of general revenue, could destabilize funding for essential programs.
Washington State eyes new gun taxes and permits. A leading gun control group in Washington is urging lawmakers to implement permit-to-purchase requirements and excise taxes on firearms and ammunition sales, reports the Washington State Standard. The plan also includes restrictions on bulk purchases and enhanced oversight of gun dealers.
Italy refines digital tax to target big tech. Italy plans to maintain its 3 percent digital services tax for large multinational tech companies while sparing small businesses and publishing groups, reports Reuters. While the US has criticized the levy as discriminatory, Rome sees it as a necessary tool to balance its budget. Concurrently, the Italian government aims to reduce corporate tax rates for firms investing in jobs and innovation.
Adidas raided in customs tax investigation. Adidas AG’s headquarters in Germany faced a second day of raids as European prosecutors investigated suspected evasion of customs duties and import taxes, reports Bloomberg. The investigation spans from October 2019 to August 2024. Adidas says it is cooperating with authorities and does not anticipate a significant financial impact.
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