What might a slim House Republican majority mean for tax and budget policy? GOP leaders are preparing to advance President-elect Trump’s agenda on taxes and spending, including efforts to extend expiring portions of the Tax Cuts and Jobs Act, implement spending cuts, and address the debt limit. However, internal divisions and a slim margin in the House could complicate these plans, reports The Wall Street Journal. With Democrats expected to oppose much of Trump’s fiscal agenda, Republicans will need to maintain near-total unity.
Missouri appeals court nixes “stacked” marijuana taxes. The Missouri Court of Appeals ruled that counties cannot impose an additional 3 percent sales tax on marijuana sales when cities already levy a 3 percent tax. After voters legalized recreational marijuana last year, some counties added local sales taxes on top of city sales taxes. A dispensary challenged the extra county portion, arguing it violated the state constitution.
Virginia voters support expanded property tax relief for surviving military spouses. An overwhelming 93 percent of Virginians voted to amend the state Constitution and extend real estate tax exemptions to surviving spouses of service members who died in the line of duty. Currently, the property tax exemption is limited to spouses of service members who are either fully disabled or meet a specific definition of “killed in action” set by the Department of Defense. The amendment passed both chambers of the state legislature before the general election and will require a second approval by the legislature before taking effect.
Louisiana makes a move to tax digital products and services. The state’s House Ways and Means Committee advanced a bill to apply the state’s sales tax to digital products such as online news subscriptions, video games, smartphone apps, and communication tools like Zoom. Louisiana already taxes digital downloads of books, movies, and music as tangible goods. The bill’s proponents argue the expansion aligns with digital tax practices in 44 other states. The tax would exempt stocks, bonds, internet services, and professional services delivered electronically, such as telehealth. The tax could generate nearly $40 million annually.
France revises employer tax hikes in budget plan. To balance pro-business policies with the need to address budget shortfalls, the French government will scale back proposed tax increases for employers, according to Budget Minister Laurent Saint-Martin. The 2025 budget bill, introduced last month, includes $63.8 billion (€60 billion) in tax hikes and spending cuts aimed at reducing the deficit. Of that amount, reduced tax breaks for employers were set to contribute about $4.3 billion (€4 billion), but the government is now adjusting this measure to ease the impact on businesses, reports Bloomberg.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox on weekdays at 8:00 am (once weekly when Congress is not in session). We welcome tips on new research or other news. Email Renu Zaretsky.
