A Republican proposal to impose a tax hike on millionaires offers to generate about $400 billion over a decade, according to two new estimates provided to Bloomberg News, providing fresh revenue to partially offset the cost of the party’s multitrillion-dollar tax package.

The Budget Lab at Yale projects that taxing income over $1 million at a 40% rate would generate $420 billion over a decade. The Tax Foundation in its own preliminary analysis finds that the new bracket would raise $358 billion over the same 10-year period, according to Garrett Watson, the director of policy analysis for the think tank. 

The two estimates from nonpartisan think tanks differ slightly because each group uses different assumptions about economic performance. But the figures suggest that the creation of a millionaire tax bracket could help President Donald Trump enact some of his campaign trail pledges, including eliminating taxes on tips, which is estimated to cost $118 billion over ten years.

Lawmakers are slated to return to Washington next week following a two-week recess, with their top priority crafting a package to renew Trump’s 2017 cuts for households and closely held businesses. They’re also discussing new priorities, including ending taxation on overtime pay and new tax breaks for seniors and car buyers. No taxes on overtime pay would cost at least $680 billion over 10 years, according to the Tax Foundation.

The Senate has deployed an accounting gimmick so that the $3.8 trillion cost of extending Trump’s first-term tax cuts counts as $0 for budgeting purposes. But Republicans have a strict $1.5 trillion revenue limit for any new reductions, putting pressure on them to scale back some of their ideas or find revenue offsets — such as the millionaire bracket — to pay for new tax breaks.

Trump has indicated he is open to higher taxes on the wealthiest Americans, but not all Republicans are convinced it’s a good idea. The concept of higher levies on top earners runs counter to years of Republican orthodoxy.

House Majority Leader Steve Scalise has pushed back, saying they oppose any rate increase. Iowa Senator Chuck Grassley told constituents at a town hall last week that an increase in the top rate is slated to be discussed in the Senate Finance Committee, but added “that doesn’t mean it’s going to happen.”

“It’s certainly on the table,” House Ways and Means Committee member Nicole Malliotakis of New York said Monday on Bloomberg Television. orted.

Lawmakers interested in the idea argue that it would be good politics to raise taxes on the wealthy to create new working class tax breaks, including a possible increase in the child tax credit.

Raising an additional $400 billion from millionaires is approximately enough money to increase the child tax credit for parents to $2,500 from $2,000, according to Andrew Lautz of the Bipartisan Policy Center. The general rule of thumb is that a $1,000 increase in the child tax credit costs about $700 billion, he said.

Lawmakers have wide latitude to debate the level of a new rate and at what income threshold it kicks in. For example, lawmakers could have the higher tax rate kick in at $5 million in income, generating only $150 billion over 10 years, the Budget Lab estimates. That would affect 75,000 taxpayers, compared to 650,000 taxpayers who would see their taxes rise if the 40% rate applied to income starting at $1 million. 

The analyses don’t address if Congress makes any changes to the 20% pass-through deduction. Expanding the top bracket would impact business owners who pay their company taxes on their individual tax returns. Lawmakers like North Carolina’s Thom Tillis have said they are open to the millionaire bracket, but want to include some carveouts for business income.

Democratic lawmakers on Monday introduced a bill to block investors from using Puerto Rico as a cryptocurrency tax haven — a proposal unlikely to advance without Republican support and as Congress prioritizes extending the 2017 tax cuts.

Under current laws, qualified investors living in the U.S. Commonwealth are not required to pay local or federal taxes on capital gains, including crypto appreciation. That tax break — part of a broader package of tax incentives known as Act 60 — has made the island a haven for thousands of digital currency enthusiasts.  

The bill introduced by New York Representative Nydia Velazquez and other Democratic lawmakers comes as President Donald Trump has been embracing crypto and promised to slash regulations that affect digital assets.

If passed, the Fair Taxation of Digital Assets in Puerto Rico Act of 2025 would add a new section to the Internal Revenue Code that would make digital-asset income on the island subject to federal rules.

In a statement to Bloomberg News, Velazquez said the bill will close a critical loophole, “making sure everyone plays by the same rules.”

“This wave of crypto investors hasn’t helped Puerto Rico’s recovery or strengthened the local economy,” Velazquez said. “Instead, it’s driven up housing costs, pushed out local residents, and added pressure to an island where nearly 40% of people live in poverty — all while costing the federal government billions in lost tax revenue.”

According to Velazquez’s office, Puerto Rico will lose an estimated $4.5 billion in revenue from 2020 to 2026 due to tax breaks for wealthy investors.  

Earlier this month, Governor Jenniffer Gonzalez presented a package of measures that would extend Act 60 benefits through 2055, but also require new applicants for the incentives to pay 4% on capital gains. By contrast, cryptocurrency holders on the U.S. mainland might pay as much as 20% and 37% on long-term and short-term capital gains, respectively, according to Velazquez’s office. 

Crypto boosters say the tax breaks are drawing high net-worth individuals with fintech expertise to the struggling island. Among those who call Puerto Rico home are Dan Morehead, the founder of Pantera Capital, a crypto-focused investment firm; crypto evangelist Brock Pierce; and YouTube celebrity and sometime digital-asset promoter Jake Paul.

The Tennessee General Assembly passed legislation backed by the Tennessee Society of CPAs adding an extra pathway to a CPA license, as more states make efforts to alleviate the shortage of new accountants.

SB 1316/HB 1330, introduced by Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth on behalf of the administration, was filed for introduction on Feb. 6. The legislation aligns with Tennessee Governor Bill Lee’s goal to streamline state boards and simplify licensing. Members of the Tennessee Society of CPAs lobbied for licensing changes in February.

The legislation offers two pathways to licensure for prospective CPAs starting Jan. 1, 2026. Applicants can either:

• Ccomplete the traditional path of at least 150 semester hours of college education including a bachelor’s degree plus one year of accounting experience; or,
• Complete at least 120 semester hours of college education including a bachelor’s degree plus two years of accounting experience.

For both options, the coursework needs to include an accounting concentration as determined by Tennessee State Board of Accountancy rule.
In addition, the legislation includes CPA practice mobility provisions so CPAs can still practice across state lines. Current and future CPAs who don’t have a principal place of business in Tennessee will be able to practice in the state if they hold a valid CPA license in good standing from another state and if, at the time of licensure, they showed evidence of having passed the Uniform CPA Exam. They need to consent to the jurisdiction and disciplinary authority of the TSBOA, comply with the applicable statute and board rules of the state, and cease offering services in Tennessee if their license in the state of issuance is deemed to be no longer valid. These changes will take effect July 1, 2025.

(Read more: See what other states are doing to expand paths to becoming a CPA.)

“This legislation is a key step in ensuring that the demand for skilled accounting professionals, specifically licensed CPAs, can be met now and in the future,” said TSCPA president and CEO Kara Fitzgerald in a statement Monday. “Tennessee was a leader in advocating for the 150-hour rule in the 1990s, and as the needs of the profession change, Tennessee will continue to lead in evolving our licensure model to make sure we meet those needs.”

The bill will now be sent to Gov. Lee and, once he signs it, will become effective on the dates stated above.

Other states besides Tennessee have been expanding beyond the traditional 150-hour requirement for CPA licensure with alternative pathways. Earlier this month, Iowa added another pathway to CPA licensure and Georgia passed a CPA licensure bill.