Though Tax Hikes Will Be Avoided, the House Bill Misses the Bigger Picture
The tax bill prioritizes politics over economic growth, writes Daniel Bunn.
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The tax bill prioritizes politics over economic growth, writes Daniel Bunn.
The Republican party, led by President Trump, has decided that growth is no longer a priority. This is evident in the president’s trade war, the minimal opposition among Republican members of Congress, and the seemingly endless supply of bad policy ideas that will do little to support growth.
Lawmakers should push against efforts to lift the SALT cap, and they should keep an eye toward bringing additional transparency to the tax system.
Political popularity isn’t always a reliable gauge of sound policy—and that’s certainly true of President Donald Trump’s idea to eliminate taxes on tips, bonuses, and overtime pay.
Attempting to defend Trump’s tariffs, the White House points to studies that show they raise prices, cut manufacturing output, and lead to costly retaliation.
The U.S. Constitution grants authority to Congress to “lay and collect” duties and to “regulate commerce with foreign nations.” But Congress has delegated its powers to set tariffs and negotiate trade to the president. For decades, the executive branch has used those powers to reduce barriers to trade and, sometimes, to impose tariffs in limited fashion.
Compromising on the timing and availability of expensing—or offsetting the revenue losses by worsening other parts of the tax code—would squander an opportunity to craft a fiscally responsible, pro-growth tax reform.
According to a new poll from the Tax Foundation and Public Policy Polling, more than half of taxpayers lack basic tax literacy, regardless of educational attainment, income level, or political affiliation.
If voters are being asked to charge state legislators with raising the equivalent of a doubling of the current income and sales tax, shouldn’t they get to know what the plan is first?
Testifying to Congress, United States Trade Representative Jamieson Greer argued that “President Trump’s trade policy is working.” The data present a different picture: President Trump’s trade agenda is actually holding back the economy.
From coast to coast, lawmakers are embracing wealth and millionaires’ taxes. Many of these proposals will face their ultimate test at the ballot box this November, and we should be rooting for these measures to fail.
New York City’s proposed “pied-à-terre” tax surcharge on second homes valued at over $5 million would impose higher costs for residents, reduce investment, and dim economic prospects.
For many, the OBBBA made tax filing easier and put more money back into their pockets. But it didn’t improve the grade for overall tax complexity for the US. It may actually make the situation worse.
Smaller corporate tax bills after the OBBBA are not evidence of new giveaways or loopholes. They are evidence the tax code is finally treating investment the way it should.
Gas tax prices are soaring across the country, and lawmakers are naturally looking for ways to alleviate the pain at the pump. While gas tax holidays—which temporarily suspend fuel taxes to artificially lower the price of gas—are a politically welcomed intervention, taxpayers shouldn’t be so quick to celebrate.
As the policy debate for the next presidential election begins to take shape, both sides need to be honest about their plans for addressing the actual challenges our country faces.
By 2036, more than one out of every four dollars raised in total government revenue will go to pay interest on the debt.
Unlike the IEEPA tariffs, which were stopped by the Supreme Court, the new Sec. 122 tariffs require congressional authorization after 150 days.
The side-by-side agreement is an important step in trans-Atlantic economic relations, however, there is more work to be done—on both sides of the Atlantic. If there’s a downside to the side-by-side agreement, it’s the risk of locking in mediocre tax policy choices for the long run.
Alaskan lawmakers are actively debating this session whether they should open their digital borders to the online sports betting market. If legalization is a step Alaska decides to take, the right tax mix could result in notable fiscal advantages for the state.
As states grapple with taxing the evolving tobacco and nicotine market, policymakers should carefully consider the tax mix they implement.
European policymakers would be wise to refocus tax and trade policies on what is good for Europe rather than trying to change policies in countries beyond European borders. Meanwhile, the Trump administration would be wise to recognize that the transatlantic relationship is a geoeconomic asset that can be mutually beneficial.
Michigan’s tax code remains too complex, and taxpayers should be asking for a system that bends toward simplicity, not the other way around.
Economic policy in 2025 came with historic highs but also disappointing lows.
Though politically popular, “no tax on tips and overtime” is a short-sighted gimmick that risks derailing West Virginia’s path to prosperity.
The Trump administration has rightly shifted its focus from pursuing legislative changes to implementing new permanent rules. But in this shift, it’s crucial that the White House doesn’t lose focus on the larger task at hand.
One thing remains certain: sending out tariff rebates does not provide a long-term solution for families, but ending the trade war would.
Amidst a government shutdown, healthcare subsidies have metastasized into a major threat to the nation’s fiscal and economic health.
Taxing carbon emissions could leave decisions about reducing greenhouse gases to the market.