Connect with us

Congress

Ways and Means eyeing limits to corporate tax deductions

Published

on

The House Ways and Means Committee is looking at limiting corporate state and local tax deductions as one way to offset the costs of a large party-line tax bill, according to two people familiar with the discussions.

The panel, which oversees all tax policy, is considering the limit among other potential offsets for the bill, according to the people, who were granted anonymity to share private deliberations. Companies currently can deduct an unlimited amount of state income, property and sales taxes from their federal tax bill.

The discussions signal that a proposal to limit corporate SALT, as the deduction is called, may have enough support among Republicans to make it into a party-line tax bill. The far-right House Freedom Caucus had previously raised the idea of putting a cap on the deduction to pay for raising the current cap on the amount of state and local taxes that individuals can deduct, but it was unclear how much buy-in the proposal had with the rest of the conference.

The discussions come as tax writers scramble to find ways to contain and offset the costs of both extending expiring tax cuts and enacting President Donald Trump’s tax priorities. House Republicans adopted a budget plan last week that set the upper limit on the size of tax cuts at $4.5 trillion, which leaves very little wiggle room for the conference to enact all of their ideas.

Extending the expiring provisions of Trump’s 2017 tax cuts for ten years would cost roughly $4 trillion without interest, according to the Congressional Budget Office. Republicans have also committed to restoring business write-offs like bonus depreciation, which would cost $378 billion over a ten-year window, according to CBO.

Those policies alone would leave little room for some of Trump’s campaign promises to eliminate income taxes on tips and overtime work, which could add hundreds of billions more in red ink.

The Ways and Means Committee has also been considering other ways to cut down the impact of a tax bill on the federal deficit. Those include strengthening work requirements for the Temporary Assistance for Needy Families program and repealing a nursing home staffing mandate implemented under the Biden administration.

According to a joint analysis by the Bipartisan Policy Center and the Tax Foundation, repealing corporate deductions for state income taxes could raise around $192 billion in revenue.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Congress

New York poised to place Harriet Tubman in US Capitol

Published

on

ALBANY, New York — Gov. Kathy Hochul’s lifelong obsession with Harriet Tubman is propelling an effort to place a statue of the 19th century abolitionist in the U.S. Capitol.

The push to put Tubman’s marble likeness in the Capitol’s Statuary Hall is also being backed by both the state Senate and Assembly, which support the governor’s plan to swap out a statue of founding father Robert Livingston.

There are 100 statues in Statuary Hall — two for each state. The planned switch to Tubman would be the first change in one of New York’s spots since the likenesses of Livingston and George Clinton were shipped to Washington in the 1870s.

Hochul has been as big a booster of Tubman as anybody. Last year, she told a group of elementary school students about her childhood fascination with the Union Army spy.

“When I was in third grade, I had this one favorite book. It was called ‘The Story of Harriet Tubman,’” Hochul said. “It was a book I used to check out of the library all the time. I didn’t own it. I checked it out so much, the librarian one day said, ‘Why don’t you just keep it?’ And what I’d do is, late at night, my parents said, ‘Turn the lights out,’ it was dark in my room, I crept out of bed and I’d go grab that book. And I read it over and over and over because I could not get over how courageous she was.”

Gov. Kathy Hochul poses by a statue of Harriet Tubman in Auburn, New York.

Seventeen statutes have been removed from Statuary Hall since 2003, most of whom were Confederates or their sympathizers. Democrats in the House have twice passed a bill in recent years to ban such statues. And while this has yet to win approval from the Senate, other efforts to remove sculptures that have faced criticism have been successful — including North Carolina’s Republican-backed push to replace segregationist Charles Brantley Aycock with Billy Graham last year.

Hochul has made at least four official visits to Tubman’s historic home in Auburn since she became lieutenant governor a decade ago. She renamed one of the boats the state uses on the Erie Canal after Tubman in 2022. And she announced in 2023 that the state would spend $400,000 to add a Tubman statute to Binghamton — which is set to be unveiled this Friday.

Livingston spent 24 years as New York’s first chancellor — a post that made him the top judge in the state, but which also had some powers currently held by the governor. His tenure overlapped with a stint as the first American to hold the job that evolved into secretary of state. He later served as Thomas Jefferson’s ambassador to France and negotiated the Louisiana Purchase.

But his historical standing has been marred by the fact that he owned more than a dozen slaves.

A replica of the Robert Livingston statue is seen in the New York State Capitol.

Livingston was never a consensus choice for a statue. As the Legislature began debating the honorees in 1872, steamboat inventor Robert Fulton seemed like the early frontrunner to join Clinton.

Hochul’s proposal, which was buried in her budget and has since been included in both chamber’s one-house budget bills, would create a five-member commission tasked with selecting a Tubman statute. The governor would then be tasked with working with the Architect of the Capitol to finalize plans.

“One of the architects of the Underground Railroad, one of the folks who has redefined who we are as a human,” said Sen. Jamaal Bailey — who’s sponsoring a bill to make Harriet Tubman Day a state holiday — about why the abolitionist is deserving of the historical honor.

“From a human perspective, not just a Black perspective — and I think it’s great, as a Black person in New York state, for her to have this recognition — I think it’s very important for us to do,” Bailey said.

While Livingston might be removed from Washington, his likeness will live on. Two exact replicas were made when his statue was finalized in 1875. One of them still stands prominently at the western end of the state Senate’s lobby in New York’s Capitol building.

Continue Reading

Congress

‘Dodging your question’: Bennet stops short of calling on Schumer to resign — but invokes the Biden fight

Published

on

Michael Bennet stopped short of calling for Chuck Schumer to step aside as Senate Democrats’ leader — though he pointedly compared the situation to the party’s internal strife over then-President Joe Biden serving as the party’s nominee last summer.

“On the leadership question, it’s always better to examine whether folks are in the right place, and we’re certainly going to have that conversation,” the Coloradoan said in a town hall in Golden, Colorado, Wednesday evening.

Bennet sidestepped a question about whether he would call for Schumer to step down, referencing the end of Biden’s disastrous 2024 election bid where the president ultimately stepped aside after growing agitation from other elected Democrats.

“In dodging your question, let me just say: It’s important for people to know when it’s time to go, and I think in the case of Joe Biden, and we’re going to have conversations I’m sure in the foreseeable future, about all the Democratic leadership,” he said.

Bennet’s statement comes almost a week after Schumer backed a GOP funding bill that most of his caucus voted against.

Bennet — a one-time 2020 presidential candidate — was one of the earliest Senate Democrats to publicly grapple with Biden’s position at the top of the ticket in 2024. He has publicly expressed interest in a potential run for Colorado governor next year.

Schumer has since faced intense scrutiny from his party — and particularly members of the House — but has repeatedly contended the move was necessary to stave off a government shutdown that he believes would have allowed President Donald Trump and Elon Musk to accelerate their crusade to hollow out federal agencies.

That, he has said, could also shunt critical public services like food benefits or mass transit funding.

“I’m a smart politician, I can read what people want,” Schumer told BLN’s Chris Hayes on Tuesday night. But Republicans, he continued, put forward a “terrible, terrible, bill,” and a shutdown would have been “so much worse.”

Sen. Elizabeth Warren (D-Mass.) said at a town hall earlier this week that Schumer “was wrong,” WBUR reported, but otherwise did not address if he should remain leader.

Much of this resentment is concentrated among House Democrats, who were largely united in voting against the GOP bill. Senate Democrats have largely held their tongues.

Earlier this week, former House Speaker Nancy Pelosi — a longtime partner of Schumer’s — added to the fire, saying, “I myself don’t give away anything for nothing. … I think that’s what happened the other day.”

Continue Reading

Congress

James Blair: White House ‘not bashful’ about pushing Trump agenda

Published

on

James Blair: White House ‘not bashful’ about pushing Trump agenda

lead image

Continue Reading

Trending