Senators doubt fast fix for expiring ACA premium tax credit. With the enhanced Affordable Care Act (ACA) premium tax credit set to expire at year’s end, Senate Majority Leader John Thune (R-SD) says Republicans are still debating proposals from Finance Committee leaders, while Senate Minority Leader Charles E. Schumer (D-NY) warns that GOP efforts to address the credit are in “total disarray.” Tax Notes reports that moderates in both parties say they could accept a temporary extension with new income limits, but any partisan plan is unlikely to clear the Senate’s 60-vote threshold before the year ends. The Urban Institute estimates that absent extension of enhanced ACA premium tax credits, 4.8 million people will become uninsured in 2026.
Sen. Hawley pitches broad new health care tax deduction. Sen. Josh Hawley (R-MO) is promoting a new health proposal that would let all taxpayers deduct up to $25,000 per person in medical expenses, including out-of-pocket premiums. Unlike current law, which allows itemized deductions only for unreimbursed medical costs above 7.5 percentof adjusted gross income, Hawley’s plan would layer the medical deduction on top of the standard deduction to reach more households. He says the idea, which he has discussed with President Donald Trump, could serve as a fallback if Congress fails to agree on extending enhanced ACA premium tax credits, though he has not yet lined up support from key Senate tax writers.
IRS clarifies rules for “Trump accounts” after multibillion-dollar pledge. New IRS guidance answers key questions about “Trump accounts,” the tax-deferred investment program for children created by the One Big Beautiful Bill Act and recently boosted by a $6.25 billion pledge from Dell Technologies founder Michael Dell. Tax Notes reports on the guidance, which explains who qualifies as an eligible child, how families and employers can contribute to the accounts, and the investment rules that require low-cost, broadly diversified equity funds, as well as how rollovers and distributions will be treated before and after age 18. Some benefits experts worry the accounts could primarily help families with money to save while others struggle to meet basic needs.
A “tax-aware” hedge fund? A quantitative investment firm has rolled out a new “tax-aware” long-short hedge fund that seeks to reduce investors’ tax bills while pursuing market returns. Bloomberg shares more on the broader boom in tax-aware investing.
Boston’s commercial slump shifts more tax burden to homeowners. Boston officials expect commercial property values to fall another 6 percent in fiscal 2026, deepening a two-year slide in office and lab assessments and putting more pressure on residential taxpayers in a city heavily reliant on real estate taxes. With state law limiting how much Boston can adjust the balance between commercial and residential rates, Mayor Michelle Wu says the typical single-family homeowner faces a 13 percent property tax increase next year and a 34 percent jump over three years. Wu is renewing her push for state approval to temporarily raise commercial tax rates.
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