Happy Tax Day! Average refunds are up compared to last year, thanks to last year's GOP tax law. But there are signs that some taxpayers have missed the memo. Interesting polling from Bipartisan Policy Center that could have midterm implications. Free link: www.bloomberg.com/news/article...
The IRS has an early present for Santa: tax deductible tips. The agency's final rule on jobs that qualify for Trump's tips tax break has some fun nuggets, including clarity for Santa and celebrity impersonators, horse groomers and the clergy. Free link: bit.ly/4cBOdU4
Corporate tax revenues tumbled following the GOP tax law. I dug through filings and earnings calls of the 50 biggest US-listed companies to figure out where those tax savings went. Nearly a dozen credited the law for a drop in their 2025 taxes with some paying billions less than the year before.
With the threat of the government shutdown rising, a lapse in funding would undercut the IRS during an already challenging filing season, thanks to leadership turnover, staff cuts and new tax breaks. Here's what that would mean for taxpayers (gift link): www.bloomberg.com/news/article...
NEW: The Treasury Department is preparing to release a corporate tax workaround that would deliver big tax savings to companies including Salesforce and Qualcomm. The change would let companies deduct old R&D investments without triggering the 15% corporate minimum tax. Gift link:
Small business owners and workers, who make up nearly half Obamacare enrollment, will be hit hard when enhanced subsidies expire in Jan. I spoke to a few owners who are facing tough decisions about what do when their health care costs skyrocket next year. Free link: www.bloomberg.com/news/article...
Last week the White House acted on its threats to eliminate the CDFI Fund, laying off its entire staff.
But CDFIs have strong bipartisan backing, and at least one GOP senator is fighting back. Read @emilyflitter.bsky.social and @caitlinreilly.bsky.social: www.bloomberg.com/news/article...
I dug into @kff.org data on the expiring health care subsidies at the center of the shutdown fight and found their expiration would most affect residents in GOP states and districts, which could have implications for next year's midterm elections.
Free story here: www.bloomberg.com/news/article...
Tune into this conversation with my Bloomberg News colleagues Nathan Hager, @caitlinreilly.bsky.social and @steventdennis.bsky.social and me as we dive into the impacts of the government shutdown.
Link below 👇
A deeper look at how the Trump administration is targeting liberal groups, with @caitlinreilly.bsky.social and @simonefoxman.bsky.social: www.bloomberg.com/news/article...
News: Hours after we published, Treasury shared a statement saying upcoming formal guidance would exclude tips connected to "illegal activity, prostitution or pornography" from the tax break.
The department did not respond to an earlier request for comment.
I guess tax is not sexy after all.
This is definitely the first time I’ve interviewed a dominatrix for a story. But OnlyFans creators and others in the digital content creation space could be big winners in the rollout of Trump’s no-tax-on-tips. Who says tax isn’t sexy?
Free link: www.bloomberg.com/news/article...
Medicare cuts in play as Senate GOP hones budget bill.
(@jessiehellmann.bsky.social @sandhyawrites.bsky.social @caitlinreilly.bsky.social Roll Call)
rollcall.com/2025/06/05/m...
Full story on CQ: plus.cq.com/doc/news-81694…
Scoop: As House GOP huddled with Trump on reconciliation today, Senate Budget Rs quietly met to hammer out their budget blueprint, aiming for a Wednesday markup. The tentative plan includes $175B for border, $150B for defense and $17B for the Coast Guard over 4 years, fully offset.
Senate Majority Leader Thune was noncommittal when asked about reports that House and Senate leadership agreed to a one-bill reconciliation strategy. “Well, I think that discussion is always predicated on what we can get done,” he said.
Finance ranking member @wyden.senate.gov, D-Ore., seemed to indicate following the markup Democrats are in no rush to strike a deal with Republicans that would speed up Bessent's confirmation on the floor. “Every day seems to yield some additional questions,” Wyden said.
The Senate Finance Committee voted 16-11 to approve Scott Bessent’s nomination to be Treasury secretary, clearing the way for floor consideration. Democratic Sens. Mark Warner of Virginia and Maggie Hassan of New Hampshire voted to advance the nomination.
Governors Tate Reeves, R-Miss., Glenn Youngkin, R-Va., Brian Kemp, R-Ga., Ned Lamont, D-Conn., Ron DeSantis, R-Fla., and Mike Braun, R-Ind., are down here too, as is former GOP Arizona senate and gubernatorial candidate Kari Lake. House and Senate spouses are also seated in the overflow space.
Here’s who we’ve spotted in the inauguration overflow viewing space in the Capitol Visitor Center so far:
Scale AI CEO Alexandr Wang
Open AI CEO Sam Altman
MMA fighter Conor McGregor
Influencers Logan & Jake Paul
Podcaster Theo Von
NY Mayor Eric Adams
Former race car driver Danica Patrick
The list, which is one of various option menus floating around and doesn't represent any final decisions or even a comprehensive set of proposals, provides a more detailed look at trillions of dollars in potential spending cuts and revenue raisers than previously made public.
House Republicans are examining hundreds of policy options across 11 committees for possible inclusion in their one-bill reconciliation package, according to a document compiled by the House Budget Committee. Full story here: plus.cq.com/doc/news-815...
So it’s less clear whether it survives past this year. Bessent only committed to this filing season, which starts in a few weeks, and said he would review the program after that. It’s an uphill battle beyond that because Republicans (and tax prep software providers) are pretty dug in against it.
If the idea picked up enough steam among Republicans, which is probably a long shot, it could be a handy revenue raiser to offset the cost of extending more than $4T in expiring tax cuts later this year. The proposal also has the support of Senate Budget Chair Graham, R-S.C.
Sen. Cassidy, R-La., asked Bessent whether he would support imposing trade duties on carbon-intensive imports, a concept that in theory could find some support among Dems. Bessent called it an “interesting idea” that could fit within a broader tariff program.
A little news from this hearing: Bessent commits that the IRS Direct File program allowing taxpayers to file directly online with the IRS, a target of GOP attacks, will be available and operable this tax season.
"Either he and his lawyers take the position Treasury policy doesn't apply to the Treasury Secretary, or he blesses the loophole that lets Wall Street titans blow off their fair share of Medicare taxes," he said.
Ranking Dem @wyden.senate.gov painted Bessent’s handling of his taxes as emblematic of a system with one set of rules for the rich and another for the working class. “This is exactly the kind of abusive scheme that leaves Americans feeling disgusted with the tax code,” he said.
The defense comes in the wake of a leaked memo prepared by Democratic committee staff accusing Bessent of avoiding self-employment taxes and taking other deductions staff deemed questionable. Representatives of Bessent and Finance Republican staff denied the characterization.
Scott Bessent, Trump’s Treasury nom, is appearing before Senate Finance this morning. Chair Mike Crapo, R-Idaho,
opened the hearing, saying Bessent had cooperated with the committee on its “exacting” vetting process. “It’s clear you followed all applicable law,” Crapo said.