House Republicans make progress on adopting Trump’s fiscal agenda. The House Budget Committee approved the GOP’s budget reconciliation legislation last night by a vote of 21-16. The legislation allows for $4.5 trillion in tax cuts and calls for $1.5 trillion in mandatory spending cuts. However, at the request of more conservative members, the ceiling for tax cuts would be lowered to $3.5 trillion if lawmakers don’t find at least $2 trillion in spending cuts. Those figures could make it difficult to make expiring portions of the Tax Cuts and Jobs Act (TCJA) permanent and also address other campaign tax promises made by President Donald Trump.
Senate GOP draws a line on TCJA extension. Meanwhile, Republican senators are demanding a permanent extension of expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA), rejecting the strategy of temporary extensions being floated by House Republicans. The divide between the House and Senate GOP complicates efforts to advance President Trump's broader legislative agenda, which includes tax policy, energy deregulation, and border security. The cost of extending the tax cuts for 10 years is estimated at close to $5 trillion, exceeding House Republicans’ proposed deficit cap. Both chambers seek to use reconciliation to pass legislation, but the Senate wants to pass a smaller bill with energy and border security and push tax policy in a separate bill later this year.
House Democrats want answers on DOGE’s Treasury access. House Ways and Means Democrats have filed a resolution of inquiry seeking details on the Department of Government Efficiency (DOGE) and its access to the Treasury’s payment system. Lawmakers are concerned about taxpayer privacy. The resolution, if passed, would compel the Treasury to disclose communications and documents related to DOGE’s involvement.
Should EV owners pay up for highway maintenance? Politico reports that Republican lawmakers are pushing for new taxes on electric vehicles (EVs) to help fund U.S. highways, since EV drivers are not subject to gas taxes that support the Highway Trust Fund. Some states have already implemented fees or taxes on EVs, and this federal proposal signals a broader debate over fair taxation as EV adoption grows. The move could face opposition from clean energy advocates who view it as a barrier to EV adoption.
IRS phone lines still falling short, TIGTA finds. A new Treasury Inspector General for Tax Administration (TIGTA) report finds that IRS toll-free phone services still need improvement. Out of 103 test phone lines, 28 calls were disconnected, 25 lacked a Spanish-language option, and 17 failed to provide identity theft information. The IRS has implemented some fixes and pledged further improvements.
Massachusetts rolls out record $92.8 million in film tax credits. The Bay State’s film tax credit program reached a record high of $92.8 million in 2023, benefiting productions like “Madame Web” and “Dexter: New Blood.” While proponents argue that the incentives generate jobs and economic activity, cs argue that the state recoups only 14 cents for every dollar spent.
Proposed cannabis tax hike in Michigan to fix roads could boost prices too much. Governor Gretchen Whitmer’s (D) proposed wholesale tax on cannabis aims to raise $470 million for infrastructure, but industry leaders warn it could devastate an already struggling market. Michigan’s cannabis businesses, which benefit from some of the lowest taxes in the nation, argue that higher levies could drive consumers back to the illicit market.
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