Republicans to control Senate next year, likely to retain House. GOP senators will decide this week on their party’s leader in the Senate for 2025. Sens. John Thune (SD), John Cornyn (TX) and Rick Scott (FL) are top contenders. Republicans have so far won 213 seats in the House and are on a path to retaining control of the lower chamber. Big portions of the 2017 Tax Cuts and Jobs Act, which passed Congress with only Republican votes, are set to expire at the end of 2025.
And what might happen to President-Elect Trump’s tax agenda in 2025? TPC’s Howard Gleckman suggests that President-Elect Trump will be able to achieve many of his campaign tax promises. But some ideas could face resistance on Capitol Hill, including from Republicans.
The global tax agreement may be “in peril.” The Financial Times reports on experts’ opinions on the Organisation for Economic Co-operation and Development’s framework to prevent large multinational corporations from shifting profits across borders to reduce taxes. The plan, which includes a minimum effective tax rate of 15 percent on corporate profits, could be undermined by the next Trump administration, experts say.
TPC models TCJA’s impact on the taxation of US foreign investment. In a new report, TPC’s Thomas Brosy shares modeling results using TPC’s tax model to examine whether the Tax Cuts and Jobs Act (TCJA) raised or lowered tax rates for US multinational companies. It depends on the amount of profit from new investments companies move to low-tax jurisdictions, the cost of keeping income abroad before 2017 to avoid US taxes, and other factors.
How does the tax code treat US citizens who live abroad? US citizens living abroad enjoy tax exemptions and credits that help avoid taxation of their income by both the US and the country in which they live. But the risk of double taxation remains, as this TPC Fiscal Fact explains.
Seattle City Council to consider a 2 percent capital gains excise tax. The local tax is modeled after state’s tax 7 percent tax on capital gains from the sales of stocks and bonds exceeding $250,000. Washington voters last week rejected a repeal of the two-year-old state tax. The proposed tax for Seattle, which would support financial assistance for rent, housing down payments, and food, would go into effect in 2026.
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