The House just released a list of options they may use to pay for the next big tax bill to extend current tax cuts. You can read the full text at the link (https://www.politico.com/f/?id=00000194-74a8-d40a-ab9e-7fbc70940000), while some of the key items are summarized here:
10% Tariff
Would increase revenue by $1.9 trillion
Applied to all imports
Border Adjustment Tax
Increase revenue by $1.2 trillion
Would create a new consumption tax on imported goods. Basically disallow deductions for costs of imports and eliminate tax on exports
Repeal SALT Deduction ENTIRELY
Increase revenue by $1 trillion
This would remove even the $10,000 allowed deduction for state and local tax.
Eliminate Home Mortgage Interest Deduction
Increase revenue by $1 trillion
Currently allowed to deduct interest on primary residence - this would eliminate that.
Eliminate Non-citizens from Federal Health Benefits
Save $35 billion
Illegal aliens are eligible for some federal health care programs (tax credits and medicaid). This would eliminate that eligibility.
Repeal Green Energy Credits
Save $796 billion
Would eliminate clean vehicle, clean energy, efficient building, and other energy credits that were introduced in the Inflation Reduction Act (IRA).
Cutting additional IRA Green-related credits could add $405 billion in savings.
End the Employee Retention Credit
$75 billion in savings
SSN Requirement for Child Tax Credit
$28 billion in savings
2017 tax reform required this, but it's set to lapse.
Tax College Endowments 14%
Would increase revenue $10 billion
Only applies to larger endowments, but is currently set at 1.4%.
Eliminate Non-profit Status for Hospitals
Would increase revenue $260 billion
Wow. Hospitals that are 501(c)(3)s would be taxed as for-profit entities.
Disallow Charitable Deduction for Health Orgs
Would increase revenue $83 billion
Donations to 501(c)(3) hospitals would not be deductible as charitable.
Tax Scholarship and Fellowship Income
Would increase revenue $54 billion
Currently these are excluded as long as they're used on tuition and related expenses. This option would make them taxable.
Tax Employer Provided Transportation and Gym Use
Would increase revenue $70 billion
Currently employer-provided gym use is not taxable and transportation up to $315 per month is excludable.
Eliminate Deduction on Student Loan Interest
Would increase revenue $30 billion
Deny Social Security to those with Felony Warrants
Increase revenue by $3 billion
Currently only those "fleeing to avoid arrest" are having this income withheld.
Ban Telehealth Facility Fees
Increase revenue by $2.3 billion
This would eliminate facility fees charged to "telehealth" visits.
Income Verification for Free / Reduced School Meals
$9 billion in savings
Would require income verification for free breakfast and lunch for qualifying students.
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