One bill or two for the GOP’s tax agenda? TPC’s Howard Gleckman considers the 
GOP debate over whether President-elect Trump’s ambitious tax, border, and energy policies will be tackled through one sweeping reconciliation bill or divided into two bills. While President-elect Donald Trump and some in the GOP leadership prefer a singular approach to streamline passage, no matter the approach, intraparty divisions over spending cuts will likely complicate progress.  

IRS Taxpayer Advocate flags delays and funding challenges. The National Taxpayer Advocate’s Annual Report to Congress highlights improvements in IRS taxpayer services and ongoing delays. Identity theft cases now take an average of two years to resolve. Meanwhile, over a million Employee Retention Credit (ERC) claims remain backlogged as policymakers have raised alarms about the potential number of fraudulent ERC applications. Recommendations from the advocate’s report include adequate funding for taxpayer services and modernization efforts, as only 10 percent of the IRS’s Inflation Reduction Act budget increase supports these areas.  

Missouri’s tax debate: flat tax or broader base? Missouri lawmakers are advancing a proposal to establish a flat 4 percent income tax rate while expanding sales taxes to previously untaxed services. The changes align with Republican Governor-elect Mike Kehoe’s goal of phasing out income taxes entirely. Critics warn that shifting the tax burden in this manner could disproportionately harm low- and middle-income households. 

Bezos Earth Fund gets a tax-exempt boost. The Bezos Earth Fund now includes a nonprofit foundation with 501(c)(3) status, enabling tax-free donations. With $2 billion in grants distributed so far, the fund’s strategy mimics other philanthropic models that blend charitable and advocacy efforts. However, Bloomberg reports on concerns over transparency and the operational flexibility these funds have compared to traditional nonprofits. 

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