Trump announces new forced-labor tariffs. The Trump administration will impose new tariffs on imports from 60 nations that it says are buying goods made with forced labor instead of higher-paid American labor. Countries without laws barring such goods, including China, the United Kingdom, and Japan, will face 12.5 percent tariffs, while countries with such laws, including the European Union, will face 10 percent tariffs if they fail to enforce them. Some imports, including products covered by the US-Mexico-Canada Agreement and oil and gas, are exempt. The tariffs take effect today as the administration works to rebuild its tariff agenda after the Supreme Court struck down Trump’s earlier tariffs under the International Emergency Economic Powers Act.
Senate GOP cools on House reconciliation plan. Senate Republicans are warning that the House-passed $95 billion budget resolution may not have enough support to advance before the August recess. The measure would unlock reconciliation instructions for military and intelligence funding, farm assistance, and election-related grants drawn from the SAVE America Act. House Majority Leader Steve Scalise (R-LA) said the Senate must “figure out a way to get it done,” and expects President Trump to pressure Senate Republicans. But Senate Majority Leader John Thune (R-SD) said he does not yet have 50 votes for the resolution; his main priority is a funding deal to avoid a federal government shut down after Sept. 30.
Wyden and Neal target mega-IRAs. Senate Finance Committee ranking member Ron Wyden (D-OR) and House Ways and Means Committee ranking member Richard Neal (D-MA) introduced legislation (paywall) aimed at limiting very large tax-preferred retirement accounts. The bills would require annual distributions from retirement accounts with balances of at least $10 million and would impose larger distribution requirements on accounts exceeding $20 million. The proposal also would bar some high-income taxpayers from making additional IRA contributions once their account balances exceed $10 million.
Senate Democrats seek Kies investigation. Senate Finance Committee ranking member Ron Wyden (D-OR) and 12 other Democrats asked the Treasury Inspector General for Tax Administration (TIGTA) to investigate Kenneth Kies’s departure from Treasury and the IRS (paywall). Kies, who served as Treasury assistant secretary for tax policy and acting IRS chief counsel, left after reports that he clashed with the White House over potential violations of section 7217, which bars executive branch interference in IRS audits. The senators asked whether TIGTA received any reports from Kies about improper requests and whether it has opened an investigation. They also asked who ordered Kies’s departure if it was not voluntary.
Colorado tax debates focus on income and vehicle taxes. Colorado voters may face competing income tax ballot measures this November, including one that would cut taxes for residents earning less than $500,000 and raise taxes on higher-income households to fund health care, K-12 education, and childcare. A rival proposal would cap the state’s individual and corporate income tax rate at the current 4.4 percent. Meanwhile, Colorado officials are also watching the “Montana loophole,” which some residents use to avoid vehicle taxes and registration fees by forming a Montana LLC and registering high-end vehicles there. Colorado law generally requires residents to register vehicles in the state if they are kept and driven there, but enforcement can be uneven.
UK cuts business rates for pubs and music venues. British Prime Minister Andy Burnham announced a 20 percent cut in business rates for pubs, clubs, and smaller live music venues in England. The tax break will take effect in April and is expected to benefit nearly 32,000 venues, with a typical pub saving about £1,100, or roughly $1,470, in the next financial year. Business rates are a property tax on commercial premises, and hospitality businesses have long argued that the tax places too much pressure on brick-and-mortar venues. The government says the policy will be fully funded, in part by reviewing relief for some businesses, including vape shops, and cracking down on online firms that do not meet their tax obligations.
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