President-elect Donald Trump opts for a unified reconciliation package. Rather than two separate bills previously proposed by some Republican leaders in Congress, Trump is pushing for one comprehensive reconciliation package. This strategy, discussed at the past weekend’s House GOP retreat and reported by Politico, would bundle border, tax, and energy priorities into a single legislative effort. The streamlined approach introduces challenges for swift passage, given Republicans’ slim House majority and ongoing negotiations over the debt ceiling and tax cuts.
A lot of questions to answer on the future of the 2017 tax cuts. The GOP faces a daunting task as it works to extend and potentially expand provisions of the 2017 Tax Cuts and Jobs Act, which could cost about $4 trillion over a decade. Politico highlights internal divisions on whether to fully offset the costs, with proposals ranging from higher tariffs to cutting green energy credits. Procedural hurdles, such as Senate reconciliation rules, further complicate the effort as lawmakers navigate deficit concerns, a packed legislative calendar, and parliamentary rules.
New Treasury rules provide flexibility for clean hydrogen tax credits. Final regulations for the Section 45V clean hydrogen production tax credit, effective January 10, offer expanded eligibility and greater investment certainty for producers. TaxNotes reports (paywall) that Treasury has clarified standards for lifecycle emissions and coordination with carbon sequestration credits.
Congestion pricing clears a legal hurdle in New York. New York City’s plan to impose a $9 congestion pricing fee for vehicles entering Manhattan’s busiest districts has overcome a major legal challenge. A federal judge denied New Jersey’s emergency request to block the program, according to The New York Times. The toll, which went into effect yesterday, aims to reduce traffic and generate $15 billion for mass transit improvements. While the ruling is an early victory for New York, the legal battle may persist.
Maryland property owners face steep tax hikes. Maryland homeowners are grappling with significant property reassessment increases, with values rising by up to 35 percent in some areas, per Fox Baltimore. The hikes, driven by a statewide reassessment process, coincide with Maryland’s $3 billion budget deficit, raising concerns about taxpayer burdens and potential population loss. Tax credits and assistance programs are available but may not fully offset the strain for many families.
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