Poll finds GOP tax law has a salience problem. A new Politico poll finds that many Americans do not know what is in the One Big Beautiful Bill Act, creating a challenge for Republicans ahead of the midterms. Nearly half of respondents said they could not explain the law, and those who could were more likely to say it helped others, including wealthy households, more than themselves. One-third said the law had hurt their finances, while 8 percent said it had helped them a lot and 14 percent said it had provided modest support. Recent TPC analysis by Aparna Mathur shows that the tips and overtime provisions of the tax bill have only benefitted 3 percent and 10 percent of taxpayers, respectively.
California Republicans challenge health plan tax. Independent Rep. Kevin Kiley and California’s five House Republicans are asking the Trump administration to block California’s new Managed Care Organization tax. Gov. Gavin Newsom (D-CA) signed the tax into law last month after federal rules barred states from imposing non-uniform provider taxes on Medicaid managed care and private health plans. California plans to tax providers at the same average monthly rate of $8.85 per enrollee for both Medi-Cal and private insurance plans. If insurers pass the cost along, a family of four could pay about $400 more per year in health insurance premiums, reports Fox40 News. The tax still needs approval from the Centers for Medicare and Medicaid Services before taking effect next year.
The case for uniform capital taxation. TPC’s Gene Steuerle argues that taxing capital income more uniformly could help Congress raise revenue more efficiently as part of future budget reform. Capital income makes up a large share of income for the wealthy, but current law taxes different forms and sources of capital income at different effective rates. Those differences can encourage tax shelters, delayed capital gains, excessive borrowing, profit shifting, and business-form choices driven more by tax rules than economic value.
Italy cuts diesel tax as energy prices rise. Italy approved a temporary tax cut on diesel fuel (paywall) through Aug. 6 to help motorists manage higher energy prices tied to the widening conflict in the Middle East. The measure provides a discount of 17 euro cents per liter, including excise duties and value-added tax, and is expected to cost about €125 million. Finance Minister Giancarlo Giorgetti said the government will review the policy again on Aug. 4 before deciding whether to extend it. Italy also plans to ask Parliament for authority to seek more fiscal room under European Union rules to support energy security and defense spending.
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