Taxation & Representation: Tax Alert – New Bills Could Reshape Your Finances!

House Republicans Begin Discussions on Reconciliation 2.0: Last week, House Republican leaders agreed to try to advance a second reconciliation bill this year, but they remain deeply divided over what policies to include and how to pay for them. Speaker Mike Johnson (R-LA) and House Budget Committee Chairman Jodey Arrington (R-TX) are pushing the effort as a way to fund priorities like higher Pentagon spending, while other leaders such as Majority Leader Steve Scalise (R-LA) and Ways and Means Chair Jason Smith (R-MO) are skeptical about the ability to pass the bill. Read the Full Story.

Lawmakers Push for Indexing Capital Gains: Last week, Sens. Ted Cruz (R‑TX) and Tim Scott (R‑SC) sent a letter to Treasury Secretary Scott Bessent urging the Treasury Department to index capital gains taxes to inflation. They said the move would promote economic growth and ease housing shortages by encouraging long‑term homeowners to sell. The lawmakers also argued that the Treasury Department has the authority to define cost basis in a way that would allow investors selling assets such as stocks or real estate to adjust their original purchase price to eliminate the taxation of gains attributable to inflation. Read the Full Story.

Kelly, Blumenthal Introduce the Gas Prices Relief Act: On March 9, Sens. Mark Kelly (D-AZ) and Richard Blumenthal (D-CT) introduced S. 4032, the Gas Prices Relief Act. The bill would create a temporary federal gasoline tax holiday by setting the 18.4 cent federal excise gas tax (including the Leaking Underground Storage Tank financing rate) to zero from the date of enactment through Sept. 30, 2026. It would replenish the Highway Trust Fund and Leaking Underground Storage Tank Trust Fund from general revenues, protecting against any funding losses. Read the Full Story.

Treasury Department Plans International Tax Guidance for Q2 and Q3: By mid‑2026, the Treasury Department plans to issue a series of proposed regulations updating the international tax rule for the modification adopted in the OBBBA. The upcoming proposals will cover section 250 foreign‑derived income exclusions, section 951 rules for calculating U.S. shareholders’ foreign income, and section 898 guidance on foreign tax allocations after tax‑year changes. The Treasury Department is also reconsidering section 892 rules on how income earned by foreign governments through U.S. investment is taxed. Read the Full Story.

Van Hollen Introduces Millionaire Tax Proposal: Sen. Chris Van Hollen (D-MD) proposed a plan that would eliminate federal income taxes for workers earning at or below a “living wage” (about $46,000 for single filers and $92,000 for married couples). The plan would offset the resulting revenue loss by imposing a new surtax: 5% on income above $1 million, 10% above $2 million and 12% above $5 million. Read the Full Story.

Tax Foundation Analyzes Sanders Wealth Tax Proposal: Last week, the Tax Foundation issued an analysis of Sen. Bernie Sanders’ (I-VT) wealth tax proposal, which would impose an annual 5% tax on the net value of a taxpayer’s assets exceeding $1 billion. Supporters of the proposal, economists Emmanuel Saez and Gabriel Zucman, projected the legislation would raise $4.4 trillion over 10 years (1.2% of GDP annually) with only 10% evasion, but more realistic models predict significantly less. The Tax Foundation estimated that it would raise $3.3 trillion assuming 33% evasion or $2.3 trillion factoring baseline avoidance and behavioral responses, due to high incentives for evasion, threshold distortions and asset shifts to consumption. Read the Full Story.

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