Wyden wants a bipartisan look into the Donald J. Trump Foundation. Top Senate Finance Committee Democrat Ron Wyden has requested a bipartisan investigation into laws regulating charitable organizations—and into the Trump Foundation. Wyden wrote, “Through this Committee's long history—and particularly over the past ten years—the Senate Finance Committee has rigorously investigated alleged abuses of charitable tax laws, often on a bipartisan basis.”
Speaking of laws… Why did the President choose situational enforcement? TPC’s Howard Gleckman takes a look at the Trump Administration’s divergent attitude toward immigration and tax laws. Until yesterday afternoon, the administration insisted for weeks that it was required by law to separate migrating families at the US border, even though Trump repeatedly called the practice “horrible.” Yet, top White House officials say the IRS will not be permitted to enforce the long-standing Johnson Amendment that bars 501(C)(3) non-profits from electioneering—because Trump opposes the law. Gleckman concludes, “The contrast between Trump’s actions on the border and his decision to ignore the tax law is striking. And deeply troubling.”
No Senate traction for spending cuts. Just a day after House GOP leaders rolled out a plan to cut spending by $900 billion over 10 years, the Senate has rejected President Trump’s effort to block $15 billion in spending already approved by Congress. Two Republicans joined all Senate Democrats in opposing the recession bill. It isn’t a good omen for the House budget plan. Or for the president’s influence on Capitol Hill.
Or for the President’s trade policy. Commerce Secretary Wilbur Ross got a testy reception from Republicans at yesterday’s Senate Finance Committee hearing on Trump’s tariffs. Committee chair Orrin Hatch, normally a stalwart supporter of the president, told Ross, “Know that you are taxing American families, you are putting American jobs at risk, and you are destroying markets — both foreign and domestic — for American businesses of all types, sorts and sizes.”
The European Union announces retaliatory tariffs. On Friday, the EU will start charging a 25 percent import duty on $3.2 billion in US products including steel, aluminum, sweetcorn, peanuts, bourbon, jeans and motorcycles.
While German automakers’ CEOs are happy to end car tariffs between the US and EU. The US ambassador to Germany, Richard Grenell, and chief executives of BMW, Volkswagen, and Daimler are in favor of ending car tariffs as part of a larger agreement on industrial goods.
Movie producers: Want a tax credit in California? If a proposed measure in the state’s budget passes, all you’ll need to do is report your production’s diversity statistics and protect employees from sexual harassment. The state would award tax credits based on "below the line" hiring practices, not just for starring actors and directors.
If you’d like to tell us about a new research paper or have any comments about the Daily Deduction, TPC’s summary of the day’s tax news, write Renu Zaretsky at [email protected]. You can sign up here to receive the Daily Deduction as an email newsletter every weekday morning (Mondays only when Congress is in recess) at 8:00 am.
