Latest news with #JointCommitteeonTaxation
Yahoo
2 days ago
- Business
- Yahoo
Opinion - Lawmakers can help usher in a golden age by extending Opportunity Zones
With the passage of the House reconciliation bill, the majority party is working on sending one 'big, beautiful bill' to the Oval Office. While Medicare debates dominated the budget conversation, President Trump's 'number one economic development project ever in our country,' Opportunity Zones, is uniting lawmakers across the aisle. One of the administration's key achievements was a first-of-its-kind tax incentive designed to uplift the nation's most vulnerable communities. Known as the Opportunity Zones tax incentive, the federal program gave working-class Americans a chance to benefit from a growing economy — many of whom had been overlooked during the 2008 financial crisis. Opportunity Zones leverage capital gains that otherwise would remain on the sidelines in investors' portfolios, deploying those gains into low-income neighborhoods desperate for capital to come — and stay — in their communities. If investors keep their funds in these communities for 10 years, the gains are tax-free, a win-win for investors and residents of low-income neighborhoods. The bipartisan initiative flooded low-income communities with private capital and helped breathe life into previously neglected neighborhoods. Now, Congress should prioritize expanding Opportunity Zones or making the tax incentive permanent, ensuring that funding continues to reach the nation's underserved communities. Since its 2017 inception, the program has been a success. The results speak for themselves. Opportunity Zones have raised employment growth by 3 to 4.5 percentage points in OZ communities relative to similar non-OZ areas. Corporations and manufacturers made massive investments domestically that created good-paying jobs for millions of Americans. According to a 2022 report from the Joint Committee on Taxation, Qualified Opportunity Zone Funds have raised more than $85 billion in equity — with another three years of investment beyond that. Over half of this money has gone toward new housing projects alone — a victory for families working hard to achieve the American dream of homeownership. Previously overlooked communities like Erie, Pa. — once home to one of the poorest ZIP codes in America — benefitted from Opportunity Zones. Erie alone saw over $400 million in new, long-term capital investment, with similar success stories across all 50 states and territories. The federal incentive doesn't dictate where investments should go; instead, it empowers communities to develop the resources they need. While Opportunity Zones have significantly expanded housing stock, they have also spurred major investments in new businesses, industrial revitalization and manufacturing development. Projects have ranged from research and development labs, and academic spaces to more localized initiatives like constructing a grocery store in a former food desert. Other examples include the launch of a 5G technology manufacturing center and the transformation of long-vacant buildings into job training hubs, employment centers and entrepreneurship incubators. The incentive benefits rural communities, too. In Eastern North Carolina, Promised Land's Opportunity Zone fund has invested in a 4,000-acre working farm that produces potatoes, corn and soybeans on a massive scale, adding a $4 million state of the art grain bin system. The farm improved its long-term productivity and, importantly, the community's economic sustainability. These projects are crucial as nearly 40 million Americans live in poverty and grapple with high living costs and limited access to economic opportunities. Opportunity Zones align their needs with investors searching for new opportunities as they navigate a volatile stock market. Before the Opportunity Zones program was imagined, President Trump reshaped the skylines of our nation's busiest hubs — changing their trajectory in the process. That same legacy lives on through this important initiative — only this time touching more communities than ever before. Federal lawmakers should make it a priority to extend or make permanent the Opportunity Zones program. Shay Hawkins is deputy director for Opportunity Zones at America First Policy Institute. Jill Homan is advisor for Opportunity Zones at America First Policy Institute. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
2 days ago
- Business
- The Hill
Lawmakers can help usher in a golden age by extending Opportunity Zones
With the passage of the House reconciliation bill, the majority party is working on sending one 'big, beautiful bill' to the Oval Office. While Medicare debates dominated the budget conversation, President Trump's 'number one economic development project ever in our country,' Opportunity Zones, is uniting lawmakers across the aisle. One of the administration's key achievements was a first-of-its-kind tax incentive designed to uplift the nation's most vulnerable communities. Known as the Opportunity Zones tax incentive, the federal program gave working-class Americans a chance to benefit from a growing economy — many of whom had been overlooked during the 2008 financial crisis. Opportunity Zones leverage capital gains that otherwise would remain on the sidelines in investors' portfolios, deploying those gains into low-income neighborhoods desperate for capital to come — and stay — in their communities. If investors keep their funds in these communities for 10 years, the gains are tax-free, a win-win for investors and residents of low-income neighborhoods. The bipartisan initiative flooded low-income communities with private capital and helped breathe life into previously neglected neighborhoods. Now, Congress should prioritize expanding Opportunity Zones or making the tax incentive permanent, ensuring that funding continues to reach the nation's underserved communities. Since its 2017 inception, the program has been a success. The results speak for themselves. Opportunity Zones have raised employment growth by 3 to 4.5 percentage points in OZ communities relative to similar non-OZ areas. Corporations and manufacturers made massive investments domestically that created good-paying jobs for millions of Americans. According to a 2022 report from the Joint Committee on Taxation, Qualified Opportunity Zone Funds have raised more than $85 billion in equity — with another three years of investment beyond that. Over half of this money has gone toward new housing projects alone — a victory for families working hard to achieve the American dream of homeownership. Previously overlooked communities like Erie, Pa. — once home to one of the poorest ZIP codes in America — benefitted from Opportunity Zones. Erie alone saw over $400 million in new, long-term capital investment, with similar success stories across all 50 states and territories. The federal incentive doesn't dictate where investments should go; instead, it empowers communities to develop the resources they need. While Opportunity Zones have significantly expanded housing stock, they have also spurred major investments in new businesses, industrial revitalization and manufacturing development. Projects have ranged from research and development labs, and academic spaces to more localized initiatives like constructing a grocery store in a former food desert. Other examples include the launch of a 5G technology manufacturing center and the transformation of long-vacant buildings into job training hubs, employment centers and entrepreneurship incubators. The incentive benefits rural communities, too. In Eastern North Carolina, Promised Land's Opportunity Zone fund has invested in a 4,000-acre working farm that produces potatoes, corn and soybeans on a massive scale, adding a $4 million state of the art grain bin system. The farm improved its long-term productivity and, importantly, the community's economic sustainability. These projects are crucial as nearly 40 million Americans live in poverty and grapple with high living costs and limited access to economic opportunities. Opportunity Zones align their needs with investors searching for new opportunities as they navigate a volatile stock market. Before the Opportunity Zones program was imagined, President Trump reshaped the skylines of our nation's busiest hubs — changing their trajectory in the process. That same legacy lives on through this important initiative — only this time touching more communities than ever before. Federal lawmakers should make it a priority to extend or make permanent the Opportunity Zones program. Shay Hawkins is deputy director for Opportunity Zones at America First Policy Institute. Jill Homan is advisor for Opportunity Zones at America First Policy Institute.
Yahoo
3 days ago
- Business
- Yahoo
Price tag estimate for House GOP tax package rises to $3.94T
The estimated revenue impact of the GOP tax plan would be nearly $4 trillion in the negative over a decade, the Joint Committee on Taxation — a nonpartisan committee of the U.S. Congress — has indicated. A document issued by the committee puts the net total estimated revenue effects at -$3.939368 trillion for fiscal years 2025-2034. "The problem with all of these studies is they willfully ignore current tax policy. You can't do that and be taken seriously," an Office of Management and Budget spokesperson indicated. Fox News Digital reached out to the Joint Committee on Taxation for comment, but no comment had been provided by the time of publication. Gop Rails Against 'Blatantly False' Dem Claims About Medicaid Reform In Trump's 'Big, Beautiful Bill' The GOP-controlled House of Representatives passed the One Big Beautiful Bill Act last week, even with the U.S. national debt at more than $36 trillion. Read On The Fox News App The measure cleared the chamber with zero Democrat votes, and two House Republicans — Reps. Thomas Massie of Kentucky and Warren Davidson of Ohio — voting against it. House Freedom Caucus Chair Rep. Andy Harris, R-Md., voted present, explaining in a statement, "I voted to move the bill along in the process for the President. There is still a lot of work to be done in deficit reduction and ending waste, fraud, and abuse in the Medicaid program." Speaker Johnson Clashes With Rand Paul Over 'Wimpy' Spending Cuts In Trump's Bill Some Senate Republicans have indicated that they would not be willing to support the measure as it stands coming out of the House. Elon Musk is not happy with it either. The business tycoon said during an interview for "CBS Sunday Morning" that he was "disappointed to see the massive spending bill," and that the measure undermines the Department of Government Efficiency team's work. "I'm not happy about certain aspects of it, but I'm thrilled by other aspects of it," President Donald Trump said of the measure when asked about Musk's comments. Last week, Trump hailed the House's passage of the proposal, calling for the Senate to pass it as well. "Great job by Speaker Mike Johnson, and the House Leadership, and thank you to every Republican who voted YES on this Historic Bill! Now, it's time for our friends in the United States Senate to get to work, and send this Bill to my desk AS SOON AS POSSIBLE!" the president declared in part of a Truth Social post last week. Musk Officially Steps Down From Doge After Wrapping Work Streamlining Government White House Deputy Chief of Staff for Policy and Homeland Security Advisor Stephen Miller asserted in a post on X, "I see some self-described libertarians siding with lefty bureaucrats at CBO who claim the Big Beautiful Bill will 'explode the debt.' This is based entirely on CBO claiming that extending the current tax rates (not raising them) will 'cost' the government $4 trillion in revenue. "Since when have libertarians argued that NOT raising taxes 'costs' the government money? Private money yet to be earned does not "belong" to the government. This is a Democrat-collectivist argument and I'm shocked to see libertarians deploying it. Under this ludicrous theory, one could raise taxes to 90% on everyone and declare the deficit solved. BBB cuts taxes, cuts spending, reforms welfare and *ends mass migration*," he article source: Price tag estimate for House GOP tax package rises to $3.94T
Politico
4 days ago
- Business
- Politico
House tax plan now costs $4T, budget forecasters say
House Republicans' tax package is now expected to cost nearly $4 trillion, government forecasters said Wednesday, thanks in part to a last-minute deal to further increase a cap on state and local tax deductions. The legislation approved last week by the House is now anticipated to cost $3.94 trillion over the next decade, the official Joint Committee on Taxation said. That's up from the $3.8 trillion price tag before lawmakers made a number of late changes to the plan. An agreement with a number of blue-state Republican holdouts to hike the SALT cap to $40,000, from a planned $30,000, would cost an additional $129 billion. The cap is currently $10,000. At the same time, lawmakers wrung more savings out of a clean energy investment credit that's now expected to generate $172 billion, up from $155 billion. Lawmakers approved the legislation shortly before leaving for their Memorial Day recess, but the legislation will be center-stage in the Senate when Congress returns to work next week. Lawmakers there are promising additional changes. While the $4 trillion price tag means the plan is within House Republicans' budget, the Senate has not yet settled on how much it intends to spend on tax cuts, and the package could still grow.
Yahoo
25-05-2025
- Business
- Yahoo
Sen. Johnson: House bill ‘actually increases' deficit
Sen. Ron Johnson (R-Wis.) pushed back on the House version of a sweeping domestic policy measure meant to advance President Trump's agenda during an interview with CNN's Jake Tapper on Sunday, arguing it will exacerbate the national deficit. 'We need to be responsible, and the first goal of our budget reconciliation process should be to reduce the deficit,' Johnson said. 'This actually increases it.' 'I'm sorry, the House bill would probably add, I've calculated, $4 trillion' to the deficit, he added. The House narrowly passed its version of the One Big Beautiful Bill Act early Thursday morning after an overnight session. The Joint Committee on Taxation, the official revenue scorer for Congress, estimates the tax components will add $3.7 trillion to the deficit over the next decade after offsets are calculated. The biggest hit would come from the proposed extension of Trump's 2017 tax cuts from his previous term. Johnson is among several Republican senators who have raised objections to the House plan as the measure heads to the Senate for vetting. 'I think we have enough [senators] to stop the process until the president gets serious about the spending reduction and reducing the deficit,' Johnson told Tapper of the bill's fate in the upper chamber. He said that the spending cuts House Republicans approved aren't large enough to offset added long-term pressure on the deficit, and he thinks more work needs to be done. 'I have nothing but support for what President Trump is trying to do, and I love the way he's acting boldly and swiftly, decisively, to fix the enormous messes left by the Biden administration,' Johnson said. 'We have to reduce the deficit, and so we need to focus on spending, spending, spending.' 'Level spending and then subject yourself to death by 1,000 cuts,' he added. 'Nobody would even notice it, other than the grifters who are sucking down the waste, fraud and abuse.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
