Trump and Johnson seek to avoid reconciliation rebellion. President Trump urged House Republicans to support a budget resolution this week, as Speaker Mike Johnson (R-LA) tries to move a third party-line reconciliation package before the August recess. The resolution is the first step toward a bill that could include military funding, farm aid, and parts of Trump’s SAVE America Act. Johnson still must hold together a narrow House GOP majority after weeks of intraparty disputes.
Senate Democrats reintroduce cannabis tax bill. The Controlled Substances Act would allow states to set their own cannabis laws and create a federal cannabis tax regime. The Cannabis Administration and Opportunity Act, sponsored by Sen. Cory Booker (D-NJ), Senate Minority Leader Chuck Schumer (D-NY), and Senate Finance Committee ranking member Ron Wyden (D-OR), would start the federal cannabis excise tax at 10 percent and gradually raise it to 25 percent, with lower rates for small and midsize businesses (paywall). This would also allow cannabis businesses to deduct ordinary business expenses.
India keeps equity capital gains tax. India’s finance ministry told parliament that it has no plan to eliminate the long-term capital gains tax on equities for domestic investors. Domestic and retail investors will continue to pay a 12.5 percent tax on qualifying equity gains. Collections from the long-term capital gains tax on equities rose to 1.29 trillion rupees, or about $13.38 billion, in assessment year 2025-26.
Shakira tax fight puts Spain’s tax agency under scrutiny. Spain’s tax agency is asking the country’s Supreme Court to review a ruling that wiped out €55 million in tax claims against pop star Shakira (paywall). The case has become part of a broader debate over Spain’s tax enforcement practices. Critics have questioned whether tax inspectors rely too heavily on intrusive methods and whether staff bonuses create pressure to pursue larger tax adjustments. Spain’s tax agency rejects that claim and says investigations are subject to several layers of oversight. The debate comes as Spain faces rising long-term pension and aging costs and increasing pressure to collect revenue.
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.
