Trump accounts see early surge in filings. More than 1 million taxpayers have already taken steps to open so-called “Trump accounts” in the first two weeks of filing season, according to IRS CEO Frank Bisignano, signaling strong early interest in the new tax-deferred savings vehicles for children created under the One Big Beautiful Bill Act. In remarks reported by Tax Notes (paywall), Bisignano said filings for Form 4547, which parents use to elect the accounts, have more than doubled since Treasury’s initial estimate late last month. The accounts, formally section 530A accounts, allow contributions of up to $5,000 per year until a child turns 18 and include a $1,000 federal seed deposit for children born between 2025 and 2028, with Treasury planning additional outreach for non-filers later this spring.
On Capitol Hill this week. The House Ways and Means Committee will hold hearing today examining allegations that foreign actors have used networks of tax-exempt organizations to funnel money into disruptive or illegal activity in the United States. The Senate Finance Committee will hold a hearing Thursday on the US-Mexico-Canada Agreement, focusing on North American competitiveness and trade integration.
Two trends make the case for the corporate tax over pass-through taxation. Economists and policy experts have long been skeptical of the corporate tax. But two modern trends challenge the traditional argument, as explained in a new paper by Edward Fox of the University of Michigan Law School, TPC affiliated scholar Zach Liscow of Yale Law School, and Michael Love of Columbia Law School. First, the corporate tax has become more efficient due to provisions allowing firms to expense investment spending, which have increasingly made it resemble a cash flow tax focused on economic rents. Second, partnerships, which are one type of pass-through entity, have grown into complex, sprawling structures that are extremely difficult to audit. Both trends strengthen the case for a broader use of the entity-level corporate tax, rather than pass-through taxation.
Baltimore proposes property tax relief and tax sale reforms. Baltimore officials unveiled a package of proposals aimed at lowering effective property tax rates for homeowners while also overhauling the city’s tax sale process. Mayor Brandon Scott (D) said the city plans to modernize existing tax credits, expand targeted homeowner relief, and boost enrollment in state homeowner and renter tax credits, with the goal of bringing the residential effective tax rate below $2.00 per $100 of assessed value.
Japan signals caution on sales tax cuts after election win. Japan’s Prime Minister Sanae Takaichi said her government will accelerate talks on a potential sales tax reduction but emphasized the need for fiscal sustainability. Takaichi suggested any relief, including a possible two-year suspension of the food portion of the consumption tax, would be pursued without issuing new deficit-financing bonds, even as analysts estimate such a move could cost roughly ¥5 trillion, or about $32 billion, per year.
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