Trump allies oppose stopgap spending bill. President-elect Donald Trump and several allies came out against the 1,500-page government funding proposal unveiled by House GOP leaders, leaving lawmakers with little time to pass a deal by Dec. 20. Trump has called for a narrower, more streamlined proposal coupled with a debt ceiling increase. 

Republican House member suggests country “cannot afford” tax cuts due to the size of the federal debt. Per Politico (paywall), Rep. Thomas Massie (R-KY) didn’t mince words on the idea of extending the expiring portions of the 2017 Tax Cuts and Jobs Act, which would cost more than $4 trillion in revenue over the next 10 years. “I honestly don’t know why people up here are talking about tax cuts,” Massie told the news outlet. “There’s really no way to afford them. Like, what the hell? We need to be cutting spending, not taxes.” House Speaker Mike Johnson (R-LA) will have to find a way to satisfy Massie and other deficit hawks and find palatable offsets with an historically narrow majority in the chamber. 

Tax relief for Americans abroad gains momentum. Rep. Darin LaHood (R-IL) introduced a bill to exempt U.S. citizens living abroad from paying taxes on foreign income, reports The Wall Street Journal. This aligns with Trump’s campaign pledge to reduce expatriates’ tax burdens. The bill proposes a residence-based taxation system that maintains US taxes on domestic income. High-net-worth individuals would face a departure tax to prevent abuse. Advocates say the plan could streamline compliance and relieve middle-income expatriates from onerous tax filings. 

Brazil approves tax reform regulations. Brazil’s Congress passed regulations to implement long-awaited tax reform, consolidating five taxes into a value-added tax (VAT) with federal and regional rates. The legislation also imposes levies on products harmful to health or the environment, such as cigarettes and sugary drinks. The reform aims to boost productivity and economic growth, with additional rules on state-level VAT management still under consideration in the Senate. 

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