All articles tagged with #tax policy
Trump unveiled a plan to create retirement accounts for Americans without employer-based plans, offering up to $1,000 per year in matching funds funded via a box on tax forms and linked to an expanded SECURE Act, with potential philanthropic contributions; the move aims to boost savings access as concerns mount over the Social Security trust fund running dry by 2033, though more action is still needed.
New York City Mayor Zohran Mamdani outlines two paths to close a $5.4 billion budget gap—either a 2 percentage-point hike to the personal income tax for top earners or a 9.5% increase in the overall property tax. The piece notes that describing the income tax as “2%” can be misleading, since a two-point increase effectively raises what high earners pay by about 52%, depending on how rates are calculated. Officials and watchdogs weigh in on the nuance as it shapes how the plan is understood and sold.
Gov. Bob Ferguson signaled support for a 9.9% tax on income over $1 million but would not back any income tax for individuals earning less than $1 million, insisting any bill must return significant revenue to Washington families and small businesses. He urged expanding the Working Families Tax Credit, broadening essential-item sales exemptions, and adding a biannual sales-tax holiday as the millionaire’s tax progresses from the Senate to the House; he did not commit to veto scenarios and highlighted the need for affordability measures as the session nears its March 12 deadline.
President Trump bets bigger spring tax refunds—bolstered by the GOP tax cuts—that they’ll boost his political fortunes, but economists warn the relief could be short-lived as rising costs (housing, healthcare, energy) erode gains, with many filers not receiving large refunds and one-off payments unlikely to shift long-term sentiment.
Republicans' tax cuts reduced Amazon's 2025 federal tax bill to about $1.2B from $9B the year before, driven mainly by generous depreciation allowances in the One Big Beautiful Bill and, to a lesser extent, expanded R&D breaks; the company reported a ~45% jump in profits to nearly $90B and paid roughly $2.75B in cash taxes, with no corporate AMT paid.
Trump’s newly enacted tax breaks are promoted as painless refunds (no tax on tips, no tax on overtime, and a deduction for auto-loan interest) but in practice they’re complex and fraught with limits: the overtime deduction depends on FLSA coverage and weekly hours, the auto-loan deduction requires final assembly in the U.S. and specific vehicle rules, and the tips break can trigger additional Social Security and Medicare taxes if tips weren’t properly reported. The IRS has asked the Labor Department for help administering the overtime provision, and many taxpayers may not be able to claim these breaks. While total refunds are projected to rise and some items like the Child Tax Credit and SALT cap are enhanced, the tangled rules could blunt the political payoff for Republicans and keep refunds uncertain for many Americans.
The White House says President Trump’s Working Families Tax Cuts Act will trigger the largest-ever U.S. tax refund season, with average refunds rising by about $1,000 or more in 2026 and many filers seeing near $4,000 in total tax savings, backed by various outlets noting retroactive provisions and expanded refunds, including no tax on tips, overtime, or Social Security and other incentives.
At the World Economic Forum in Davos, President Trump boasted that his policies have made the rich even richer, telling CEOs they’re in great shape and praising a deregulatory/tax approach that has benefited business leaders; he even joked about a friend buying a plane for a tax deduction. The remarks come amid a arguedly “K-shaped” economy, with billionaire wealth rising while many Americans feel the economy is stagnant, highlighting perceived favoritism toward the wealthy and prompting criticism of the administration’s economic priorities.
Treasury and the IRS issue Notice 2026-11 establishing a permanent 100% first-year depreciation deduction for qualifying property acquired after Jan 19, 2025 under the One, Big, Beautiful Bill, with interim guidance that taxpayers may rely on existing rules. The notice also outlines elections to claim 40% (60% for some longer production properties or certain aircraft) instead of 100%, to deduct for specified plants, and to treat certain components of larger self-constructed property as eligible; taxpayers may also choose not to deduct for a qualified sound recording production. For sound recordings added by the OBBB, a production may qualify for the deduction if it commences in a taxable year ending after July 4, 2025, with acquisition timing deemed to occur when principal recording commences and placement in service at initial release or broadcast.
Portland-area businesses have seen a surge in taxes since 2019, with new levies and higher rates across payroll, property, and corporate taxes; 2023 taxes paid by Portland-area businesses rose to about $1.4 billion, up from $781 million in 2019, driven by the Paid Leave Oregon payroll tax (2023), the corporate activity tax (2020), the preschool-for-all funding (2020), parks and library property taxes (2021), and the gross receipts tax (2019). Business leaders warn the growing tax burden hurts Portland’s economy and competitiveness and call for tax simplification and easier land access to encourage investment as Oregon’s economy shows signs of weakness.
Gov. Mike Kehoe proposes phasing out Missouri’s income tax over five years, to be funded by taxes on services and require a statewide vote; the lean budget also funds tornado debris cleanup, expands private K–12 tuition aid, and keeps a 4% general-revenue cut while drawing partisan feedback on feasibility and potential sales-tax shifts.
California's proposed Billionaire Tax Act aims to impose a 5% one-time tax on billionaires residing in the state, prompting some of the wealthiest to consider relocating to avoid the tax, raising concerns about potential impacts on California's economy and public services.
California faces an $18 billion deficit as Gov. Gavin Newsom prepares to release his final budget plan, with options limited to raising taxes or cutting spending, both politically challenging. The state's financial situation is worsened by federal funding cuts and increased spending, particularly on health care programs like Medi-Cal. Political considerations and the upcoming gubernatorial transition influence decisions, with little appetite for tax hikes on high earners or significant spending cuts, raising concerns about long-term fiscal stability and the governor's legacy.
The IRS announced that new cars assembled in the U.S. purchased from 2025 to 2028 may qualify for a tax deduction on car loan interest, with eligibility determined by the vehicle's final assembly location, potentially benefiting middle-income households and supporting domestic auto production.
Zohran Mamdani plans to push forward with increasing taxes on New York City millionaires to address fiscal issues.