Trump imposes drone tariffs. President Trump signed a proclamation imposing new tariffs on drones and drone components, citing national security concerns. The tariffs include a 100 percent levy on “particularly sensitive” drones and a 25 percent tariff on smaller drones considered less pressing security risks. Certain drones and components from the European Union, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan will face a 15 percent tariff, while some drones from the United Kingdom will face a 10 percent tariff.
House may take up Senate funding patch. House Rules Chair Virginia Foxx (R-NC) said the House could pass the Senate-approved stopgap spending bill using an expedited process that requires a two-thirds majority. The Senate bill would extend current government funding levels through Dec. 11, with some exceptions. The House previously passed a shorter stopgap bill that would fund the government through Dec. 4.
Kentucky governor seeks data center oversight. Gov. Andy Beshear (D) signed an executive order giving state officials more authority to review data center projects and their tax arrangements (paywall). The order allows his cabinet to reject projects that do not meet state standards, including paying their “fair share” of local taxes. The order follows the announcement of a $100 billion data center project in Paducah, located on former Department of Energy property that once housed a uranium enrichment facility.
New York pied-à-terre tax can proceed for now. New York’s pied-à-terre tax, which targets real estate that is not a primary residence, can move forward for now after a Brooklyn appeals court temporarily paused a Staten Island judge’s order blocking the plan (paywall). The stay applies while the court considers the city’s request to appeal the earlier restraining order, which was issued in a lawsuit brought by a group of homeowners.
Washington high-earner tax estimate rises. Washington revenue officials now estimate the state’s new 9.9 percent income tax on high earners will raise more than lawmakers previously assumed if voters do not repeal it in November. The tax applies to individual and household wage income above $1 million and is scheduled to take effect Jan. 1, 2028. Earlier estimates projected $2.7 billion in the first budget cycle and $6.9 billion in the following biennium. The Department of Revenue now estimates $3.1 billion initially and about $8.3 billion in the 2029-2031 biennium. The tax faces both a repeal initiative and potential legal challenges.
Itemized: Fact of the Week. Tariffs are US taxes on imported goods, paid by the importing company. The cost can be passed along to households and businesses through higher prices. Recent examples include the Trump administration’s new 15 percent tariff on polysilicon, used in semiconductors and solar panels, and a new Section 201 tariff on quartz surface products. TPC estimates those two tariffs will raise $7.3 billion and $600 million, respectively, from 2026 through 2036.
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