Some Republicans weigh safety net cuts to fund TCJA extension. President-elect Donald Trump’s advisers and congressional Republicans are exploring potential cuts to Medicaid and food assistance programs to offset the cost of extending the provisions of the Tax Cuts and Jobs Act (TCJA). The Washington Post reports options include implementing new work requirements and capping program spending. With 70 million low-income Americans relying on these programs, some Republicans are wary of the political risks such cuts could entail.
Lights, Camera… Cut? Louisiana film tax credit faces uncertain future. Gov. Jeff Landry’s (R) proposed tax overhaul includes phasing out the state’s film and television tax credit program. Film industry members expressed support for the credit at a state Senate committee hearing over the weekend. The program offers production companies tax credits worth between 25 percent and 40 percent of eligible expenses. Critics argue the film credit hasn’t reliably boosted tax revenue with other economic activity, while proponents highlight its economic and cultural impact.
South Carolina eyes big tax cuts but details are still blurry. With a new Republican supermajority in both legislative chambers, GOP leaders pledge "historic" tax relief but have yet to unveil a concrete plan. Democratic lawmakers expressed willingness to collaborate on tax reform if it benefits small businesses and lower-income taxpayers, citing their bipartisan work on the state’s $1 billion in phased-in tax cuts in 2022. Some lawmakers caution that additional tax relief and spending cuts must account for the increasing demand for public services.
Michigan lawmakers approve tax breaks for data centers. In its lame-duck session, Michigan’s legislature approved tax exemptions for “hyperscale” data centers that require at least $250 million in investment and maintain at least 30 jobs in Michigan that pay 150 percent or more of the local median wage. Proponents argue the exemptions will attract tech giants like Google and Microsoft, boosting economic development. However, environmental groups warn the energy-intensive facilities may undermine the state’s climate goals. Gov. Gretchen Whitmer (D) is expected to sign the measure into law.
A new state tax credit for organ donors in Michigan. Starting in 2025, Michigan will provide residents who are live organ donors with a one-time tax credit of up to $10,000 to offset expenses such as lost wages, child care, transportation, and lodging. Whitmer signed the measure into law last week, aiming to support those who give “the gift of life.” Donors can claim the credit in the tax year of their surgery or in the year before or after the procedure.
Another call for a global billionaire tax ahead of G20 summit. Spain’s economy minister, Carlos Cuerpo, urged Group of Twenty nations to push forward on a global minimum tax for the world’s 3,000 billionaires, proposing a 2 percent tax on their assets to raise $250 billion annually. Speaking ahead of the Rio de Janeiro G20 summit, Cuerpo emphasized growing public demand for wealth redistribution. Brazil plans to champion the proposal at next year’s United Nations Conference of Parties climate summit, with support from France, Germany, and South Africa, who argue the revenue is essential for aiding climate-vulnerable nations and funding green investment.
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