Taxes

The sweeping social spending and climate bill that House Democrats passed on Friday morning includes a temporary repeal of a Trump-era limit on the state and local tax deduction – a policy that would deliver huge windfalls to the wealthy while providing almost no benefit to middle-class Americans.

House lawmakers voted to pass President Biden’s expansive spending bill on Thursday night despite strong opposition from Republicans and lingering questions about the White House’s claim that the cost of its policies will be fully covered.

Rep. Jared Golden was the only Democrat to vote against the reconciliation bill Friday, but he said he could vote for the bill later this year depending on the changes the Senate makes to it.

Year-end tax planning always matters, but new or temporary tax-code changes make it different this year.

The nonpartisan Congressional Budget Office estimated Thursday that President Biden’s social spending bill will add $367 billion to the federal deficit over the next 10 years, without counting potential revenue from an IRS tax enforcement crackdown that White House officials claim will cover the remaining cost.

Some of the wealthiest and most prolific Democratic donors are likely to benefit financially if Democrats are successful in repealing a Trump-era limit on state and local tax (SALT) deductions.

The Internal Revenue Service could soon get a massive infusion of cash to help it track down wealthy tax cheats.

House Speaker Nancy Pelosi on Thursday defended the inclusion of changes to the state and local tax deduction in President Biden's signature spending plan, even though economists across the political spectrum agree the policy would serve as a windfall to wealthy Americans.

Enhanced IRS tax enforcement provisions included in President Biden’s social spending bill will cause audits to double over the next 10 years, according to a Republican memo distributed by House Minority Leader Kevin McCarthy, R-Calif., to GOP lawmakers on Thursday morning.

President Biden on Wednesday called for the Federal Trade Commission to probe whether oil and gas companies are engaging in criminal conduct by profiting from artificially high prices at the pump, even as wholesale fuel costs decline.

President Biden's signature social spending and climate bill promises to offset nearly $2 trillion in spending with higher taxes on corporations and the wealthiest Americans, but a new analysis shows how the U.S. economy would actually lose more in revenue than is generated in the long run.