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Senate Completes Vote-a-Rama to Advance Budget Resolution: On April 4 and 5, the Senate considered the FY 2025 budget resolution H.Con.Res.14, concluding in the traditional “vote-a-rama” on amendment and final passage by a vote of 51-48. Sens. Rand Paul (R-KY) and Susan Collins (R-ME) joined Democrats in opposing the resolution and Sen. Patty Murray (D-WA) was not present. Senators took roll call votes on 21 amendments and approved only one, offered by Sen. Dan Sullivan (R-AK), which is intended to protect Medicare and Medicaid. Seven additional amendments failed by voice vote, for a total of 28 considered amendments. Brownstein’s tracker of filed amendments can be accessed here.
Proposed 40% Marginal Tax Bracket for Million-Dollar Earners Linked to CTC Expansion: To offset the cost of extending the expiring tax provisions of the Tax Cuts and Jobs Act (TCJA, Pub. L. 115-97) and adding President Trump’s tax-policy priorities, some Republicans are reportedly considering creating a new 39% to 40% tax bracket for those earning $1 million or more annually. The TCJA had decreased the top individual rate to 37% and increased the threshold for the top tax bracket ($609,351 for single filers and $731,201 for joint filers in 2024). It is unclear whether the proposed $1 million bracket would apply to both single and married couples or include relief to such a marriage penalty. Interest in the proposal follows recent reports that consideration is being given to allowing the TCJA-enacted top tax rate to expire and revert to 39.6%, as discussed in the April 2 issue of Taxation & Representation.
JCT Releases Updated Analysis of TCJA Cost Estimate, Lawmakers Respond: On April 3, Joint Committee on Taxation (JCT) Chief of Staff Thomas Barthold responded to an inquiry from Senate Finance Committee Ranking Member Ron Wyden (D-OR), Senate Budget Committee Ranking Member Sheldon Whitehouse (D-RI), House Ways and Means Committee Ranking Member Richard Neal (D-MA) and House Budget Committee Ranking Member Brendan Boyle (D-PA) with an analysis of the cost of extending the expiring tax provisions of the Tax Cuts and Jobs Act (TCJA, Pub. L. 115-97). While applying an unusual 11-year time frame, the report estimates the cost to be $4.6 trillion ($5.5 trillion when accounting for interest), an increase from JCT’s previous estimate that a clean TCJA extension would cost $4 trillion ($4.6 trillion when accounting for interest), but the latter estimate was based on the traditional 10-year budget window. Despite the inconsistent comparative time frames, the lawmakers issued a press release highlighting JCT’s analysis, stating that extending the TCJA would amount to “economic recklessness.”
Trump’s Tariff Actions Potentially Affect OECD Global Tax Agreement, Transfer Pricing: On April 2, President Donald Trump issued a series of executive orders (EOs) to impose reciprocal tariffs on select countries and revoke China’s eligibility for the de minimis exemption. The EOs include an across-the-board 10% tariff on all countries that took effect on April 5, as well as additional country-specific reciprocal tariffs to take effect on April 9 based on “conditions reflected in large and persistent annual U.S. goods trade deficits,” with higher tariff rates applicable to countries with larger trade deficits with the United States.
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The need for fact-based reporting of issues important to family owned businesses and protecting a lifetime of savings has never been greater. Now more than ever, successful families and family owned businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to family owned businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.
Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC. Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.
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