Senate Republicans push to make Trump tax cuts permanent. Senate Republicans aim to make Trump’s 2017 tax cuts permanent by using a “current policy baseline” to estimate the cost of the tax cut extension to be $0, per Reuters. Critics argue the move would still add at least $4.6 trillion to the national debt, regardless of the baseline used.
House speaker seeks stopgap funding to prevent shutdown. Politico reports that House Speaker Mike Johnson (R-LA) wants to pass a clean funding extension through September to avoid a government shutdown beginning after March 14. His plan delays spending cuts proposed by the Department of Government Efficiency (DOGE) until 2026. The move could reduce immediate partisan clashes over spending while allowing time for broader budget reforms.
Treasury secretary downplays inflation concerns over Trump tariffs. CNBC reports on Treasury Secretary Scott Bessent’s statements that new tariffs on China, Mexico, and Canada will not raise inflation. He argues that China will absorb the costs rather than pass them to consumers. China has vowed to retaliate against the new trade measures, as have Mexico and Canada. And some US businesses are concerned that the tariffs will force them to raise their prices, according to The New York Times.
DOGE shuts down federal digital services unit that developed Direct File. The Trump administration’s Department of Government Efficiency (DOGE) has disbanded 18F, a federal tech team that helped create the IRS’s free tax-filing platform, Direct File. The move aligns with executive orders to reduce non-essential government roles. Direct File remains online and available for the current tax season.
IRS weighing DOGE request for access to taxpayer data. The Washington Post reports that DOGE seeks access to IRS data to investigate federal benefits fraud. IRS officials warn the request could violate privacy laws and undermine trust in the tax system. The administration argues that data-sharing would improve efficiency and reduce wasteful spending. Acting commissioner Melanie Krause indicated she is interested in complying with DOGE’s requests.
Oklahoma lawmakers debate tax simplification bill. A bill to condense Oklahoma’s six tax brackets into one secured Senate committee approval. Supporters say it simplifies the tax code and makes the state more competitive for businesses, while critics argue it could raise taxes for lower-income residents. The measure faces further debate as lawmakers weigh its economic impact.
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