All articles tagged with #taxcuts
In 2025, Congress, led by Republicans, made Trump's tax cuts permanent, increased military and immigration spending, repealed numerous regulations using the CRA, and weakened Senate minority power through rule changes, impacting economic and political dynamics in the US.
The Senate's version of the Big Beautiful Bill faces challenges due to disagreements over Medicaid cuts and energy tax credits, with market reactions remaining mixed despite political tensions and potential impacts on federal deficits and healthcare coverage.
The Senate GOP bill includes extensive tax cuts and spending provisions, projected to add over $3 trillion to the national debt over 10 years, with detailed estimates on how each provision impacts the federal budget, including tax extensions, health care cuts, energy policies, and immigration enforcement.
The Tax Foundation's annual event, often referred to as the 'Prom,' focused heavily on discussions around tax cuts and their implications for economic policy. Attendees, including policymakers and economists, debated the potential benefits and drawbacks of reducing taxes, highlighting the ongoing importance of fiscal policy in shaping economic outcomes.
President Trump's ambitious tax cut promises face significant challenges, even with a potential GOP sweep in Congress. While former Treasury Secretary Steve Mnuchin is optimistic about extending the 2017 tax cuts, experts warn of difficulties due to rising national debt and economic concerns. The GOP may struggle to balance individual and corporate tax cuts, with some Republicans insisting on offsetting revenue. The reconciliation process could be used to pass tax legislation, but Social Security tax cuts may be difficult to achieve. Additionally, tariffs and repealing parts of the Inflation Reduction Act are considered as potential revenue sources.
Arizona is grappling with a nearly $1 billion budget deficit, largely due to a significant tax cut and the expansion of a school voucher program. The tax cut, which replaced the state's graduated income tax with a flat tax, has led to a substantial drop in revenue. Meanwhile, the voucher program's costs have soared beyond initial estimates, now potentially reaching $900 million. Governor Katie Hobbs and the Republican-led legislature are facing challenges in addressing the shortfall, with debates over the impact of the tax cut and the future of the voucher program. Hobbs has proposed reforms to increase accountability in the voucher program, while some Republicans believe budget balancing can be achieved through other measures.
In 2024, at least 12 states in the U.S., predominantly with Republican leadership, are implementing tax cuts to lower income tax rates for residents. Arkansas, Connecticut, Georgia, Indiana, Iowa, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, Ohio, and South Carolina are among the states reducing their tax rates, with some moving towards a flat tax system. These changes are part of broader tax reforms aimed at providing financial relief amidst ongoing inflation, with varying thresholds and rates depending on the state.
Georgia has implemented new laws as of January 1, including the Consumer Access to Contracted Healthcare Act (CATCH Act) for healthcare network adequacy and telehealth, Izzy's Law for aquatic safety guidelines in memory of Israel Scott, new specialty license plates under House Bill 175, and consumer protection laws for subscription services and third-party food delivery under House Bill 528. Additionally, Governor Brian Kemp has proposed accelerating income tax cuts set to reach a 5.39% rate in 2024.
Massachusetts welcomed the new year with a series of new laws, including a significant state tax cut, an increase in the rental deduction cap, and the implementation of dental reform to ensure more premium payments go towards patient care. The minimum wage remains at $15, now surpassed by Connecticut. Additionally, Boston's City Council saw the induction of four new members and the election of Ruthzee Louijeune as president, the first Haitian-American to serve on the council, with a focus on affordable housing and public school improvements. The next council meeting is scheduled for January 10.