Reconciliation bill returns to Senate. Senate Republicans return from recess this week looking for a path forward on a $72 billion budget reconciliation package focused mostly on immigration enforcement. The bill is already past President Trump’s June 1 deadline, after concerns about the Justice Department’s $1.8 billion “anti-weaponization” fund derailed efforts to pass it before Memorial Day. Senate Minority Leader Chuck Schumer (D-NY) said Democrats will try to force votes to block the fund. The package also faces procedural trouble over a proposed $1 billion for Secret Service security, including funding related to a White House ballroom.
Illinois budget adds targeted taxes. Illinois lawmakers approved a $56 billion budget early Monday, adding new taxes on businesses while holding fiscal year 2027 spending essentially flat. The plan includes a freeze on corporate net operating loss deductions, a tax on social media companies based on Illinois users, and new taxes on digital asset sales, fantasy sports, remote tobacco retailers, and sports betting on prediction market websites. It also delays a scheduled 1.3-cent gas tax increase from July to January and creates a sales tax holiday for school supplies from Aug. 7 through Aug. 16. Gov. JB Pritzker (D-IL) had proposed some of the revenue changes earlier this year, though the final budget spends less than his February proposal.
Florida cities brace for property tax hit. Florida cities are warning that Gov. Ron DeSantis’ (R-FL) proposal to slash property taxes on primary homes could sharply reduce local revenue. The plan would create a $150,000 homestead exemption in 2027 and a $250,000 exemption in 2028 if lawmakers approve the measure and voters pass it in November with at least 60 percent support. Bedroom communities in Orange County could lose between 25 percent and 33 percent of their property tax collections, while cities with larger commercial and industrial tax bases, such as Orlando, would be less exposed. Local officials say the proposal could strain public safety, infrastructure, and borrowing capacity, while DeSantis argues the tax relief would help address affordability.
EU weighs digital and crypto taxes. The European Commission estimates that a 3 percent digital services tax across the bloc could raise up to €5 billion, or about $5.8 billion, per year. A commission assessment also says an online gambling tax could raise up to €1.9 billion, while a crypto transaction tax could generate between €3 billion and €4 billion. The ideas are part of talks over the European Union’s (EU) next seven-year budget, but they would be politically difficult to enact because EU countries are often reluctant to give the commission more taxing authority. Any sector-specific tax also would require unanimous approval to harmonize the tax base before a new levy could move forward.
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