Accounting
Trump tax plan gains momentum in House before floor vote
President Donald Trump’s signature economic package took a major step toward becoming law when the House Ways and Means Committee approved trillions in new tax cuts for corporations, households and small businesses on a party-line vote.
The bill, once it clears procedural steps, will head to the House floor for passage. But crucial issues — including an unresolved battle over the
“The one big beautiful bill is the key to making America great again,” Ways and Means Chair Jason Smith said on Tuesday, kicking off the debate on the legislation.
The bill would permanently extend the lower individual tax rates enacted under Trump in 2017 including a lower 37% rate for the highest earners, after Republicans debated the possibility of raising levies on millionaires. The legislation also brings to life many of the
Those tax cuts begin this year and will last through 2028, coinciding with Trump’s time in the White House.
The plan also calls for a slew of cuts for companies, including expanding or renewing write-offs for business profits, loan expenses, equipment investments and research costs.
The biggest open question is how to address the SALT deduction. The bill calls for increasing the $10,000 cap on SALT to $30,000, with a phaseout for most filers making more than $400,000. Republicans representing high-tax areas have rejected that amount and have threatened to block the bill unless the write-off is made even bigger.
“There’s going to be bumps along the way in this process,” Smith told reporters Tuesday.
The vote in the House tax committee came after a marathon session in which Democrats assailed the bill, casting it as disproportionately benefiting the wealthy and large corporations while adding trillions to the national debt.
“This isn’t about growth or economic prosperity, it’s about protecting the ultra-wealthy,” Representative Richard Neal, the committee’s top Democrat, said. “It’s a tax cut for billionaires.”
The tax provisions are projected to add $3.8 trillion to deficits over the next decade, according to the nonpartisan Joint Committee on Taxation. Spending cuts approved by other House committees do not come close to offsetting those reductions. Republicans argue that economic growth stemming from the tax cuts would ultimately erase those deficit increases, but economists are skeptical of that claim.
The bill also increases the child tax credit to $2,500 from $2,000 on a short-term basis, broadens health savings accounts and creates a new tax-preferred savings plan for children.
These breaks are partially paid for by ending many of the renewable energy tax benefits enacted under former President Joe Biden, including a credit for buying electric vehicles. University endowments, private foundations, sports team franchises and immigrants sending money to their home countries also face higher levies. Proposals to increase taxes on other businesses, including an increase in taxes on carried interest, were beaten back in a lobbying frenzy.
The House is aiming to vote next week. Republican lawmakers are hoping to move the package without the help of Democrats through the Senate and to Trump’s desk by July 4.
Senate leaders have said the real deadline is the federal borrowing limit. The Treasury Department has said they will run out of
— With assistance from Derek Wallbank, Emily Birnbaum and Billy House
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).
(Read more:
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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