Accounting
House tax bill calls for $30K SALT, omits millionaire tax
The House tax committee is seeking to increase the state and local deduction and make official several of President Donald Trump’s campaign tax pledges in a multitrillion-dollar package that will serve as Republicans’ signature legislative effort.
The House Ways and Means Committee release of the tax measures, ahead of planned debate on the panel Tuesday, is a sign the Republican-controlled chamber is moving toward a floor vote this month on the legislation. The bill aims to cut taxes by more than $4 trillion and reduce spending by at least $1.5 trillion over a decade.
The proposal doesn’t include a tax hike on the wealthiest Americans, after weeks of debate among Republicans about whether to raise levies on millionaires. The bill would permanently extend the 37% top rate for individuals that was set in Trump’s 2017 tax law. That’s despite Trump telling Speaker Mike Johnson as recently as last week that he wanted a
The package — which Trump has dubbed his “one big, beautiful bill” is the centerpiece of his legislative agenda. It renews many of his first-term tax cuts, set to expire at the end of the year. But narrow Republican margins in the House mean that the president needs near-unanimous support from his party to pass the bill.
The bill would raise the nation’s borrowing limit by $4 trillion. This is smaller than the Senate’s preferred $5 trillion level. Lawmakers are hoping to push any additional votes on raising the debt ceiling until after the 2026 midterms.
The draft language eliminates income taxes on tips and overtime pay through 2028. House Ways and Means Committee Chairman Jason Smith had vowed to follow through on Trump’s campaign pledges to end those levies.
Trump had also campaigned on ending taxes on Social Security benefits, but that cannot be done in the special budget process that Congress is using to advance the tax package. Instead, the bill provides a $4,000 bonus for seniors on top of the regular standard deduction.
One of the thorniest issues — including a contentious standoff over increasing the state and local tax deduction — is still not resolved. The draft calls for increasing the state and local tax deduction to $30,000 for both individuals and couples, up from $10,000, with income limits for single taxpayers earning $200,000 or joint filers making twice that. But some lawmakers representing high-tax areas want an even
On the hook for tax increases: wealthy private universities, which could see an increase in the levy on endowments from 1.4% to as high as 21% on investment income.
Johnson told reporters Monday that the House is on track to pass the legislation by Memorial Day. It would then go to the Senate, where it could be subject to major revisions.
The new details come after the tax-writing committee released some initial provisions late Friday. Those included raising the maximum child tax credit to $2,500 from $2,000 and increasing the standard deduction, both retroactive to 2025 to put more money in voters’ pockets before the 2026 election.
The bill also raises the estate tax exemption to $15 million and increases the 20% deduction for closely-held businesses to 23%.
Total postsecondary spring enrollment grew 3.2% year-over-year, according to a report.
The National Student Clearinghouse Research Center published the latest edition of its
The report found that undergraduate enrollment grew 3.5% and reached 15.3 million students, but remains below pre-pandemic levels (378,000 less students). Graduate enrollment also increased to 7.2%, higher than in 2020 (209,000 more students).
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Community colleges saw the largest growth in enrollment (5.4%), and enrollment increased for all undergraduate credential types. Bachelor’s and associate programs grew 2.1% and 6.3%, respectively, but remain below pre-pandemic levels.
Most ethnoracial groups saw increases in enrollment this spring, with Black and multiracial undergraduate students seeing the largest growth (10.3% and 8.5%, respectively). The number of undergraduate students in their twenties also increased. Enrollment of students between the ages of 21 and 24 grew 3.2%, and enrollment for students between 25 and 29 grew 5.9%.
For the third consecutive year, high vocational public two-years had substantial growth in enrollment, increasing 11.7% from 2023 to 2024. Enrollment at these trade-focused institutions have increased nearly 20% since pre-pandemic levels.
Jordan Vonderhaar/Photographer: Jordan Vonderhaar/
The Internal Revenue Service has released
The Inflation Reduction Act of 2022 amended Sec. 55 to impose the CAMT based on the “adjusted financial statement income” of an “applicable corporation” for taxable years beginning in 2023.
Among other details, proposed regs provide that “applicable corporation” means any corporation (other than an S corp, a regulated investment company or a REIT) that meets either of two average annual AFSI tests depending on financial statement net operating losses for three taxable years and whether the corporation is a member of a foreign-parented multinational group.
Prior to the publication of any final regulations relating to the CAMT, the Treasury and the IRS will issue a notice of proposed rulemaking. Notice 2025-27 will be in IRB: 2025-26, dated June 23.
Social Security Fairness Act benefit increases arrive for pensioners
Trump’s tax bill could end ‘SALT’ workaround for some businesses
Trump says ‘extremely hard’ to make a deal with China’s Xi as trade stalemate fuels calls for leaders to talk
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
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