The surprise move beat the House, which has a similar provision in its still pending One Big Beautiful Bill, to the tax relief punch. Photo by RDNE Stock project The House’s One Big Beautiful Bill (OBBB) does contain one of Donald J. Trump’s campaign trail tax promises. It provides tax relief for some workers who rely on tips to increase their income. The Senate, however, decided it was tired of waiting for its counterpart on the other side of Capitol Hill to act on this issue. On Tuesday, May 20, Senators unanimously, and surprisingly, passed their own the No Tax... Read more →
Photo by RDNE Stock project House Republicans are scrambling to revise the tax component of their One Big Beautiful Bill (OBBB) so that all of its members will approve it. Their biggest hurdles are acceptable compromises on how the bill deals with Medicaid, state and local taxes, and the Biden administration’s energy tax credits. They also need to find a way to satisfy Republican deficit hawks who are worried about the bill’s cost. The fiscal concern is a major hurdle in tweaking the bill so that all in the GOP’s slim majority will agree to send the bill to the... Read more →
Photo by Bermix Studio on Unsplash The single Republican bill the White House wants passed as soon as possible to implement its tax and immigration policies is definitely big, running in its latest iteration to 1,116 pages. And it has at least one provision, starting on page 806, that some parents might find beautiful. Under a tax provision in the officially named One, Big, Beautiful Bill (OBBB), Uncle Sam would give parents $1,000 when a baby born between 2024 and 2028 joins their families. Parents of children age eight or younger also could open a special savings account for those... Read more →
Republicans on the House Budget Committee are meeting with their members today to try to come up with changes to the tax portion of the one big beautiful bill (OBBB) that they want to pass to further the White House’s fiscal and immigration goals. Conservative GOP members tanked the tax plan on Friday, complaining that it added to the federal deficit. Fiscal conservatives are holding out for deeper spending cuts or more reductions to tax benefits for low-income households. Meanwhile, another group of Representatives, this one bipartisan by led by Republicans who represent districts with high housing costs, could cause... Read more →
Pope Leo XIV during an audience with the media on May 12. (Photo by Edgar Beltrán, The Pillar/Wikipedia Commons) On May 8, history was made by the Catholic church. Chicago native Cardinal Robert Prevost was elected to succeed the late Pope Francis. Pope Leo XIV, the name Prevost chose as the new Bishop of Rome and leader of Catholics worldwide, is the first American to be pope. There’s been much pride in and curiosity about the man who now is the supreme pontiff. But I must admit that one of my favorite comments about the election of Pope Leo XIV... Read more →
Much attention on federal agencies this year has been on ways to prevent fraud and save Uncle Sam money, with mixed results. But such efforts have always have been a focus of the Internal Revenue Service Criminal Investigation (IRS-CI). This week, IRS-CI and the Department of Justice (DoJ) announced the judicial payoff from one case that cost the U.S. Treasury more than $3 million. Fake claims on false tax returns: Diandre Mentor of Miami pleaded guilty before a Florida magistrate to conspiring to defraud the United States by filing false tax returns for clients. According to court documents and statements... Read more →
Sure, income taxes are infuriating, but if you ask homeowners what tax they hate most, it’s a good bet that their annual property tax bill tops the list. These real estate taxes are issued by county or parish officials across the United States. And the recipients of property taxes are found in all political parties. That's why a group of Republicans whose congressional districts are full of frustrated suburban homeowners are, right now, standing up against their party's leaders when it comes to the one big beautiful budget and tax bill sought by the White House. They say they won't... Read more →
Photo by Andy Quezada/Unsplash May typically is the end of high school for millions of students across the United States. After a summer break, a lot of these new graduates will be heading off to college. In addition to the new classroom challenges, these students and their families will face the daunting task of paying for college. Uncle Sam can help a bit. Be they freshmen or returning to university studies, the Internal Revenue Code has a couple of tax breaks, the American Opportunity and Lifetime Learning tax credits, that could help cover some of students’ common college costs. Here’s... Read more →
Photo by Los Muertos Crew This week in Austin is hot, and I'm not talking about one of the state capital's many music or technology or film or other festivals. It's going to be weather hot. Like sunny and 105 degrees hot tomorrow, according to forecasters. If that happens, it will break by a degree the record for May heat. I know, lots of places deal with extreme heat. Those residents also tend to face utility issues, like brown- or blackouts, when the temperatures put pressure on the electric grids. That’s why many across the nation have opted for their... Read more →
Photo by Nataliya Vaitkevich The House Ways and Means Committee this afternoon released its second run at the tax portion of the one, big, beautiful reconciliation bill demanded by the White House. This latest collection of tax provisions, released in advance of the proposal’s committee markup tomorrow (Tuesday, May 13), fills in a lot of the tax holes that were apparent in the tax-writing panel’s first version, presented on May 9. Political tax promises: Today’s measure includes many of the Trump administration’s populist policy priorities. That includes campaign promises to exempt gratuities and overtime pay from taxation. The bill also... Read more →
Every state has felt the job losses, which came via terminations or Internal Revenue Service workers who left under deferred resignation terms. Photo by Ron Lach When 2025 began, around 103,000 people worked at the Internal Revenue Service nationwide. Then the Trump administration and Elon Musk’s Department of Government Efficiency (DOGE) arrived. Now, according to a new report by the Treasury Inspector General for Tax Administration (TIGTA), the IRS ranks have been reduced by more than 11,400 workers. That’s an 11 percent cut in the tax agency’s workforce. The job losses, which TIGTA collectively refers to as separations, come from... Read more →
A recent Ways and Means Committee hearing. (W&M Republicans YouTube channel screen capture) The Republican-led House Ways and Means Committee had a late Friday surprise for the tax community. It released the tax portion of Donald J. Trump’s mandated "one big, beautiful bill," which also is slated to deal with immigration and energy. The first thing everyone noticed is that the 61-page document leaves out some of the tax provisions that the GOP has had trouble convincing all of its slim House majority to support. There’s no mention of at least increasing the state and local taxes (SALT) federal tax... Read more →
Mother’s Day is Sunday, May 11. Have you bought your mom a present yet? Don't panic. You still have time. And don't stress over finding the perfect gift. In most cases, it’s true that all Mom wants is just to see her children. But if you do want to take some token of thanks for all that your mother has done and sacrificed for you, chances are it will be flowers. Billions spent on Mom: The National Retail Federation’s (NRF’s) annual Mother’s Day survey, conducted in conjunction with Prosper Insights & Analytics, found that, once again, the most popular gift... Read more →
Any small business owner, including this self-employed mechanic, could be a tax scam target. All need to stay alert this Small Business Week and beyond. (Photo by Andrea Piacquadio) Scams are the focus of the Internal Revenue Service on this fourth day of National Small Business Week. The topic, unfortunately, is not new, and isn’t limited to special times of the year. Yes, the IRS has made progress in educating taxpayers about scams, as well as improving the agency’s ability to spot, stop, and in some cases helping prosecute criminal charges against the bad actors. But con artists and scammers... Read more →
The Republican-led Congress insists it is making progress on Donald J. Trump's "one big beautiful bill." But party leaders are facing challenges. In addition to including expiring Tax Cuts and Jobs Act provisions into a combined budget reconciliation package, they must find a way to shoehorn in Trump’s campaign trail promises of no taxes on tips, overtime pay, and Social Security benefits. A House Ways and Means Committee member believes she has a solution to the federal retiree taxation payment issue. Rep. Nicole Malliotakis (R-New York) has introduced H.R. 1129, also known as the Tax Relief Unleashed for Seniors by... Read more →
Thank you teachers! It’s something students and their families should say every day, but today especially. The first full week of May is Teacher Appreciation Week, and Tuesday of that week is designated National Teacher Day. That’s today, May 6, this year. The National Education Association (NEA) says that the whole week, but notably today’s special designation is a time for honoring teachers and recognizing the lasting contributions they make to our lives. Adequate funding for schools and better wages for teachers are among the issues championed by the NEA and other education advocacy groups. While those fiscal decisions generally... Read more →
FX/FXX TV's spy-turned-private detective Sterling Archer offers his margarita recipe. If, however, you're looking for a drink that's a bit more elaborate that the basic one preferred by the animated (in so, so many ways!) and self-absorbed bon vivant, check out the Food Network's myriad margarita recipes. Happy Cinco de Mayo! Or as we here in Texas know it, an official reason to enjoy a margarita, the state's unofficial mixed drink. No, today is not Mexican Independence Day. That's Sept. 16, a national holiday in Mexico celebrating the country’s independence from Spain. So mark your calendar for another special celebración... Read more →
Photo by Igor Omilaev on Unsplash Donald J. Trump released his first budget request of his second term on Friday, May 2. While he’s reshaped the Republican party as far as political style, his fiscal year 2026 wish list is very much traditional GOP. The $1.7 trillion budget proposal would dramatically cut many federal agencies’ spending, but would boost national security dollars. Overall, the Defense Department would see a funding increase of 13 percent, or to more than $1 trillion. But non-defense domestic program spending would be cut by nearly 23 percent, officially 22.6 percent below current year spending, according... Read more →
The Small Business Administration’s annual National Small Business Week kicks off on Sunday, May 4, and runs through Saturday, May 10, 2025. As is tradition, the Internal Revenue Service participates in the annual celebration of entrepreneurs and small business owners. That’s why this weekend’s Saturday Shout Outs go to the official plans for the week dedicated to those employers who are lauded as examples of the American business spirit. SBA support for smaller firms: Let’s start with Uncle Sam’s official host, the Small Business Administration (SBA). For more than 60 years, the U.S. Small Business Administration has sponsored National Small... Read more →