High court says IEEPA tariffs are taxes, Congress must authorize them. In a 6-3 ruling Friday, the Supreme Court struck down President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs, holding that the statute did not allow him to circumvent Congress’s taxing authority.
What does the ruling mean for federal revenue and tax burden? TPC estimates that remaining tariffs will raise $900 billion over ten years, amounting to about $900 in average tax burden per household in 2026. The average tariff rate, absent IEEPA tariffs is, for now, 9 percent. Within hours of the Supreme Court ruling, President Trump ordered a new 10 percent global tariff under Section 122, and then said he would raise it to 15 percent, in addition to existing duties.
Will IEEPA tariffs be refunded? Sen. Elizabeth Warren (D-MA) called for IEEPA tariff refunds to consumers, arguing that Americans “should get their money back” after paying unconstitutional IEEPA tariffs. The Supreme Court did not address refunds, and any yet-to-be-determined refund process is likely to be contested in lower courts.
Justices to weigh constitutionality of tax foreclosure sales. Next week, the Supreme Court will hear Pung v. Isabella County, a case that could reshape how governments conduct tax foreclosure sales. The dispute centers on a Michigan home sold at auction for about $76,000 to satisfy roughly $2,200 in unpaid taxes, even though the property’s estimated market value was much higher. Although the former owner received the surplus proceeds, he argues the Constitution requires compensation based on fair market value.
CBO outlook heads to Capitol Hill. On Capitol Hill, the Congressional Budget Office is set to present its latest budget and economic outlook to the House Budget Committee tomorrow. Also on the Hill Tuesday: The House Ways and Means Subcommittee on Health will examine strategies for training the next generation of health care workers, with a focus on rural and underserved communities.
States have lost a key monthly revenue data source. TPC’s Lucy Dadayan and Jon Schwabish explain how the Census Bureau’s Selected Monthly State Tax Collections series provided one of the few standardized, near-real-time views of state tax collections across all 50 states. Policymakers must now rely on quarterly federal state data or independent monthly sources like the Urban Institute’s State Tax and Economic Review project (STER). STER data show total state tax revenue rising 5.8 percent year over year in nominal terms in the first half of fiscal year 2026, though the median state saw only 3.6 percent revenue growth, an early sign that states’ fiscal conditions may worsen.
Itemized: Fact of the Week. When people decide how to file their taxes, ease of use is often the top driver. In the Urban Institute’s Well-Being and Basic Needs Survey of nonelderly adults, 26 percent said ease of use was the most important reason they chose a filing method, compared with 20 percent who prioritized cost and 18 percent who prioritized accuracy. People in families below 200 percent of poverty were more likely than those above 400 percent to prioritize cost (22 percent vs. 18 percent) and refund speed (8 percent vs. 4 percent).
Subscribe to the Tax Policy Center’s Daily Deduction for weekday morning tax news and research. For more from TPC: Visit the Briefing Book (tax issue explainers), Fiscal Facts (quick primers), and TaxVox (researcher commentary). Track tariff developments and analysis with TPC’s Tariff Tracker. Email Renu Zaretsky with tips on research or tax news.
