President-elect Donald Trump's proposed tax plan aims to eliminate personal income taxes in favor of tariffs on imports, potentially benefiting American workers across various income brackets. However, the plan could increase the national deficit significantly. The Wharton Budget Model suggests that while lower and middle-income earners might see modest gains, they could become "net losers" due to higher costs from tariffs, especially on Chinese goods. Upper middle class and top earners are projected to benefit more significantly from extended tax cuts and deductions.
President Joe Biden taunted Donald Trump over the plummeting stock value of his media company, Truth Social, during a speech in Pennsylvania, joking that Trump might do better under Biden's tax plan. Trump Media & Technology Group Corp.'s stock has dropped significantly since going public, causing Trump's net worth to plunge as well. Biden also made another jab at Trump's financial struggles, referencing his legal defeats and mounting debt.
President Biden kicked off a series of events in Pennsylvania by criticizing Donald Trump on various issues but avoided mentioning Trump's ongoing criminal trial. Biden's campaign also poked fun at Trump's trial through memes and news releases but refrained from directly commenting on the charges. Biden focused on his tax plan and promised not to raise taxes for those making less than $400,000 a year, while taking jabs at Trump's tax cuts for the wealthy. The White House and Biden's campaign evaded direct commentary on Trump's legal predicaments, with concerns that celebrating criminal charges against Trump could play into his narrative of persecution.
President Biden took a jab at Donald Trump over the plummeting stock of Truth Social during a speech in Pennsylvania while pitching his tax plan. Biden criticized Trump's economic policies and portrayed him as a supporter of billionaire interests. Meanwhile, Trump was in New York facing a trial, highlighting the contrast in their activities. Both men have been actively campaigning in Pennsylvania ahead of the upcoming primary election.
President Joe Biden is set to announce his tax plans at a campaign event in Scranton, Pennsylvania, as part of his re-election campaign initiatives, with a focus on providing relief through student loan forgiveness and addressing runaway interest. The Education Department has filed paperwork for a new regulation to deliver the cancellation Biden announced last week, targeting specific categories of borrowers, with the broadest forgiveness category aiming to eliminate up to $20,000 in interest for those who owe more than they originally borrowed due to runaway interest.
Kansas Governor Laura Kelly has vetoed a tax plan supported by the state legislature, citing concerns about a proposed "flat tax" that she believes would primarily benefit the wealthy. The plan included measures such as eliminating the state's Social Security income tax and speeding up the end of the state's food sales tax. Governor Kelly has proposed a three-tiered tax system instead. The legislature lacks the necessary votes to override the veto, potentially leading to a special session if no agreement is reached.
Australian Prime Minister Anthony Albanese hinted at revamping the scheduled Stage Three tax cuts for the wealthy, despite previously pledging to support them, sparking expectations of a U-turn on the controversial plans. In a radio interview, Albanese emphasized support for tax cuts for everyone while focusing on assisting low and middle income earners facing financial challenges. The potential changes have stirred debate and scrutiny, with implications for both the government's promises and the impact on different income brackets.
The Minnesota House passed a bill to legalize cannabis for recreational use, allowing people to possess, grow, and use marijuana. The Senate is expected to take up the bill for debate on Friday. The Senate passed a bill that creates a state paid family and medical leave program, which now goes to the governor for his signature. A $3 billion tax plan drew praise and blowback, with Republicans saying Democrats should send more rebates and credits back to taxpayers. Lawmakers reached a deal on a contentious bill that gives hospital nurses a bigger role in staffing plans.
Kansas Governor Laura Kelly vetoed a flat tax package that would predominantly benefit the wealthy and proposed a one-time rebate of $450 per taxpayer instead. The GOP-dominated Legislature passed the plan in April, which would reduce revenue by about $330 million annually. Kelly compared the tax plan to former Gov. Sam Brownback’s tax experiment, which crippled state finances. Republicans have examined various forms of a flat tax proposal this year as they wrestled with ways to transform a record surplus into tax cut relief.
Minnesota House Democrats have released a $3 billion tax plan that includes one-time rebate checks of $275 per taxpayer plus more for up to three dependents, a child tax credit of up to $1,175 per child for working families, and a new "millionaires tax" on the state's highest earners. The plan creates a fifth income tax bracket of 10.85% for married couples making more than $1 million per year and individuals making $600,000. Republicans criticized the tax increases, proposing a "Give It Back" plan that would send $13 billion back to taxpayers over two years.
Minnesota House Democrats have proposed a tax plan that includes a $1.3 billion tax rebate, a tax cut on Social Security income, and a new tax credit for families with children. The plan would return about $1.25 billion of the state's record $17.5 billion budget surplus in the form of a tax rebate. The proposal also includes the creation of a new “millionaires tax” on the top 0.8% of Minnesota earners and new offshore income reporting requirements for corporations. Republicans have questioned the need for any new taxes when the state already has an unprecedented budget surplus.
Governor J.B. Pritzker has expressed his opposition to a tax on financial transactions proposed by Chicago's mayor-elect, Brandon Johnson, as part of his $450 million tax plan to stabilize the city's finances. Pritzker believes that such a tax would prompt financial services companies to relocate their operations or computer servers. However, Pritzker did not reject Johnson's proposal for an additional levy on high-end real estate transactions. Johnson has endorsed a plan to raise the real estate transfer tax for properties of at least $1 million to fund permanent housing and homeless services.
Michigan Democrats, with a slim majority in both chambers, have passed several key pieces of legislation in the first two months of the legislative session, including a tax plan, the repeal of the state's 1931 abortion ban, and civil rights protections for LGBTQ people. However, some Republicans warn that the Democrats may be moving too fast and overreaching, while Democrats argue that they are simply fulfilling the mandate given to them by voters. The legislature still has all year to meet, and Democrats are rushing to pass their remaining priorities before going on spring break.
