Accounting
Republicans warm to millionaire tax hike to pay for levy cuts
House Freedom Caucus Chairman Andy Harris says he is open to the creation of a new 40% tax bracket for those earning $1 million or more, lending credence to an idea Republicans are considering as a way to offset some new tax cuts.
Harris said in an interview on Monday that he views the millionaires’ tax rate as a “reasonable way to pay for” President Donald Trump’s campaign pledge to eliminate levies on tipped wages.
“You are only raising it a couple of points,” the Maryland Republican added. The current top tax rate is 37% for individuals earning more than $626,350 a year.
Senator Thom Tillis, a North Carolina Republican, also said that he’d consider letting the top rate spring back to 39.6% — the highest bracket before Trump’s first-term cuts — as long as there were some parameters around it, particularly for owners of privately held companies that pay their business taxes on their household returns.
The openness to a new 40% tax bracket for millionaires comes after decades of Republicans opposing any form of tax increase. But the GOP under Trump has grown more populist, allowing some lawmakers to back away from the party’s long-held stance that tax cuts for top earners and corporations are a prime way to energize the economy.
Congress is seeking to pass an extension of Trump’s first-term overhaul, the Tax Cuts and Jobs Act, in the coming months. That bill faced a backlash when it passed in 2017 for skewing many of the benefits to large corporations and high-earning Americans.
Republicans are considering a series of new tax cuts, including eliminating taxes on overtime pay and creating new write-offs for older people and car buyers. But fiscal constraints in the legislation mean that lawmakers will have to find either spending reductions or tax increases to offset the cost of their tax priorities.
Harris leads the ultra-conservative House Freedom Caucus, which has several dozen members. The group, which has not taken a public position on a 40% millionaire tax rate, is an influential voting bloc and has the power to block legislation in the House given the Republican Party’s narrow margins in the chamber.
The House as soon as this week could vote on a budget resolution that unlocks the process for Republicans to pass a tax cut bill on GOP votes alone.
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.
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Total college enrollment rose 3.2%
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
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