Latest news with #taxplan
Fox News
6 days ago
- Business
- Fox News
Price tag estimate for House GOP tax package rises to $3.94T
Print Close By Alex Nitzberg Published May 29, 2025 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. 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 CLICK HERE TO GET THE FOX NEWS APP 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 declared. Print Close URL
Bloomberg
17-05-2025
- Business
- Bloomberg
Costly Loss for Sports Team Owners Embedded in Trump Tax Bill
The owner's box could soon be less opulent. A lucrative tax break that sports team owners can use to shelter billions of dollars of income would be halved in value under House Republicans' draft legislation to enact Donald Trump's signature tax plan.
Yahoo
17-05-2025
- Business
- Yahoo
House Republicans' bill includes ‘no tax on tips' proposal. How would it work?
House Republicans recently unveiled a sweeping tax plan that included a key promise from President Donald Trump's campaign trail: no tax on tips. Polling suggests it's a popular idea across party lines, and Trump has credited the idea for aiding his 2024 election win. But critics argue that no taxes on tips is a costly, unfair tax break that will benefit few lower-income Americans. 'A relatively small number of workers are going to see any significant tax savings from this proposal,' said Joseph Rosenberg, a senior fellow at the left-leaning Urban-Brookings Tax Policy Center. Here's what we know so far about the latest proposal. The bill would create a temporary tax deduction through 2028 for employees and independent contractors in occupations that 'traditionally and customarily received tips,' likely servers, for example. Should the bill pass, those occupations would be hashed out by the Treasury secretary. Highly compensated workers who make at least $160,000 in 2025 would be ineligible. Some tax policy experts have critiqued the idea because of its limited scope. Kyle Pomerleau, a senior fellow at the American Enterprise Institute, a center-right think tank, said it would be an unfair policy. For instance, why should a restaurant's tipped server have access to more tax breaks than the untipped chef working in the kitchen? 'It's good news for the workers out in Nevada, where there are a lot of tipped workers,' said Pomerleau. 'But you are isolating one segment of the population.' Even tipped workers may find themselves ineligible for the tax break. The proposed tax cut applies only to income taxes, not payroll taxes. That means the estimated 37% of tipped workers in the country who didn't make enough money to face federal income taxes in 2022 would see no benefits from this proposal, per an estimate from the Yale Budget Lab. "It is also going to do very little for workers, even that receive tips, at the low- to middle-part of the income distribution,' Rosenberg said. The Tax Policy Center last year found ending taxes on tips would benefit about 2% of all households, or 60% of households with tipped workers, with an average tax cut of about $1,800 per year. Rosenberg said the analysis has not been updated since the tax plan was unveiled on May 12, but he expects figures to be similar. Another 2024 analysis from the Yale Budget Lab had similar results, finding an estimated 4 million tipped workers – 2.5% of the total working population – would benefit from no taxes on tips. The average tax cut for families who benefit would be roughly $1,700, while the bottom fifth of earners would save $200. Overall, the tip provision is estimated to cost about $40 billion over four years, according to the Joint Committee on Taxation. It's a small fraction of the tax bill, which is estimated to add roughly $4 trillion to the deficit, but still a notable figure, according to Alex Muresianu, a senior policy analyst at the Tax Foundation, a center-right tax policy think tank. 'If you're going to drive a hole in the tax base for no reason, you'd rather that hole be the size of VW Bug instead of a semitruck,' he told USA TODAY. 'But at the end of the day, you're still driving a hole in the tax base.' Meanwhile, the GOP tax bill as a whole could cause low-income families to lose hundreds of dollars in after-tax income by cutting spending on programs like Medicaid and the Supplemental Nutrition Assistance Program, formerly known as food stamps, according to a new analysis from the Penn Wharton Budget Model. While the top 0.1% of earners would gain $389,280 on average next year, Americans making between $17,000 and $51,000 stand to lose $705 on average, according to the analysis first reported by The New York Times. Those with an income of less than $17,000 would lose more than $1,000 on average, with losses worsening over time. Americans could be squeezed further if the tax breaks have employers and workers lean more heavily on tips, exacerbating post-pandemic tipping fatigue. While the latest proposal has guardrails that would limit the ability to restructure pay, "certainly in tip-eligible industries there would be a tax incentive to shift income toward tax-exempt tips instead of taxable wages,' Rosenberg said. It's not yet clear what the final tax bill will look like. Hardline Republicans who wanted deeper spending cuts to Medicaid and a full repeal of green energy tax cuts blocked the measure Friday, despite Trump asking Republicans to "UNITE behind" the legislation in a social media post. The vote is likely a temporary setback, but it could delay plans for a vote by the full House, according to Reuters. This article originally appeared on USA TODAY: 'No tax on tips' included in GOP tax bill. How much will workers save? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
12-05-2025
- Business
- Wall Street Journal
Republican Tax Plan Boosts SALT Deduction, Ends Green-Energy Breaks
WASHINGTON—House Republicans unveiled a tax plan that raises the state-and-local tax deduction, ends some taxes on tipped income and overtime pay and extends President Trump's expiring 2017 tax cuts, partially paid for with a rollback of clean-energy tax breaks. The plan released by the House Ways and Means Committee on Monday details how Republicans will fulfill Trump's campaign-trail promises and shows where they want to raise taxes to cover part of the cost.
Yahoo
11-05-2025
- Business
- Yahoo
Republicans' partial tax plan estimated to cost $5 trillion
An early version of the House GOP's tax plan would cost nearly $5 trillion, according to a new estimate from Congress's nonpartisan tax scorekeeper. The cost far exceeds what is permitted by the budget resolution Republicans adopted earlier this year, which set the parameters for the massive package of tax cuts and extensions, energy policy and border security investments the party wants to pass in the coming weeks. The estimate, released Saturday evening by the Joint Committee on Taxation, also underscores how much hinges on the final details of the plan, which are likely to be unveiled Monday afternoon ahead of a scheduled Tuesday markup by the House Ways and Means Committee, chaired by Rep. Jason Smith (R-Mo.). The House Republican-approved budget allows for $4.5 trillion in tax cuts — contingent on the GOP being able to find $2 trillion in spending cuts. Speaker Mike Johnson indicated last week that House Republicans are looking at a skinnier, $4 trillion tax plan, paired with $1.5 trillion in spending cuts. The partial text of the tax proposal released by the Ways and Means late Friday would make permanent the individual income tax rates, which are otherwise due to expire at the end of the year. It also would extend and temporarily boost far-reaching tax benefits like the standard deduction and the Child Tax Credit. But this early, so-called skinny version of the tax bill is otherwise silent on President Donald Trump's biggest tax priorities he touted on the campaign trail, like his proposal to eliminate taxes on tips. It also bears no mention of the expensive business provisions that Republicans want to restore. The tax plan also doesn't at this point include any mention of the state and local tax deduction prized by blue state Republicans in swing districts. Last week, a contingent of House Republicans from New York, New Jersey and California indicated that despite weeks of negotiations it was nowhere close to an agreement to lift the $10,000 cap on the deduction. Republicans established that cap in 2017, which helped raise an enormous amount of revenue for the massive tax bill of Trump's first administration. Some observers are interpreting the preliminary figures from the Joint Committee on Taxation to forebode the need to secure large tax increases to offset the costs of the larger bill, which Republicans want to pass through the filibuster-skirting budget reconciliation process. Among others offsets, Republicans are looking to cut back the clean energy credits from the Democrats' 2022 climate law known as the Inflation Reduction Act, and increase tax rates on private foundations. "The deficit impact of the bill is well above the Ways & Means allowable increase of $4.0 to $4.5 trillion, so lawmakers will either need to make adjustments, include offsets, or both," wrote the Committee for a Responsible Federal Budget in a Saturday evening analysis.
