WASHINGTON – The race to harness the tax code is in full swing as economists and advocates across the political spectrum view the expiring Trump-era tax law as an opportunity to advance their economic priorities.
Democratic Rep. Suzan DelBene of Washington said Wednesday that reworking the tax code will be “a reflection of what your values are.”
DelBene, who sits on the U.S. House Committee on Ways and Means Subcommittee on Tax Policy, said her priorities include modernizing the tax code, raising revenue via carbon fees on imported goods, and making permanent an expanded child tax credit akin to the temporary changes in place during the pandemic.
“The top line is starting from what our values and goals are, and then looking at what the policies are that help us get there,” DelBene said at a Politico-sponsored discussion on proposed tax law changes.
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The early morning event at Washington’s Union Station brought together tax experts and advocates from Georgetown University Law Center, the Urban Institute, the Heritage Foundation and Groundwork Collaborative.
Tax overhaul
The massive tax overhaul ushered in under the Trump administration permanently cut the corporate tax rate to 21 percent from 35 percent. The 2017 law, championed by Republicans as the Tax Cuts and Jobs Act, also put in place several temporary measures for corporations and small businesses. Some are phasing out or already expired, including immediate deductions for certain investments.
Temporary changes for households included marginal tax rate cuts across the board, a doubling of the child tax credit, and a near doubling of the standard deduction – all of which are set to expire Dec. 31, 2025.
A bipartisan bill to temporarily extend the expiring business incentives and expand the child tax credit beyond 2025 sailed through the U.S. House in late January, but has been stalled by U.S. Senate Republicans who oppose some of the child tax credit expansion proposals.
A May 2024 nonpartisan Congressional Budget Office report estimated extending the tax cuts would cost roughly $4.6 trillion over 10 years. The bulk of the cost would stem from keeping in place individual tax cuts, according to an analysis of the report by the Bipartisan Policy Center.
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Critics of the 2017 law point to a recent March analysis from academics and members of the Joint Committee on Taxation and the Federal Reserve that shows that the law’s benefits flowed to the highest earners.
DelBene said revisiting the corporate tax rate, even on the Republican side, is “on the table” and lawmakers will be talking about “where the TCJA wasn’t about investing and making sure that we were being fiscally responsible.”
‘Incredibly bullish’
Lindsay Owens, executive director of the Groundwork Collaborative, said she’s “incredibly bullish” on elected officials making “fundamental changes” to the tax code next year.
The progressive think tank sent a letter last week to House and Senate leadership and top tax writers urging them “to use the expiration of these provisions as an opportunity to address long-standing problems with our tax code, not just to tinker around the edges.”
The letter was signed by 100 organizations from across the U.S., ranging from the AFL-CIO and the United Auto Workers to the National Women’s Law Center and United Church of Christ.
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Stephen Moore, who helped write the Trump-era tax law and is now the conservative Heritage Foundation’s senior visiting fellow in economics, said the 2017 law was a “huge success” and that “we’re gonna definitely make those tax cuts permanent.”
Moore is an economic adviser for former President Donald Trump’s reelection effort, but said he was not speaking on behalf of the presidential campaign.
He said he does not agree with Trump on everything, including a promise to enact 10 percent tariffs on imported goods, reaching as high as 60 percent on Chinese imports.
“A tariff is just a consumption tax,” he said. “And so you know, I think that it is not a great policy, in my opinion. But if you’re gonna have a tariff, I would rather have a tariff that is uniform than trying to have, like, a protectionist tariff to, you know, protect this industry or that industry.”
When pressed on data that shows funding the Internal Revenue Service increases revenue, Moore said that President Joe Biden’s increase in funding for the agency is “diabolical.”
CONCORD – While Republican Gov. Kelly Ayotte has said she opposes increasing highway toll rates across the state, the Senate voted Thursday to increase rates for out-of-state license plate holders.
It now goes to the House for consideration.
This would be a $1 increase for those who have out of state plates going through the tolls at Hooksett, Hampton and Bedford for out-of-state plates, a 75 cent hike for those taking Hampton’s Exit 2 and on the Spaulding turnpike at Rochester, and a 50 cent hike for those taking the exit off I-93 to Hooksett.
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An analysis in the bill shows that this would increase toll revenue by $53.3 million in fiscal year 2027 and go up each year to generate $81.4 million a year in 2036.
Senate Bill 627 passed on a voice vote with two Republicans, Senators Regina Birdsell of Hampstead and William Gannon of Sandown opposing.
Senator Mark E. McConkey, R-Freedom, moved to take the bill off the table and offered an amendment. He said the last time there was a systemwide increase to the turnpike toll was 19 years ago.
“I am sure we could all agree the cost of operations…has continued to escalate when revenue is not rising with it,” and he noted that with an enterprise fund, the state can only spend what it takes in.
The state has just completed a 10-year highway plan and there was a $400 million shortfall in projects that could not be paid for under the current income.
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McConkey said the measure would not increase tolls for New Hampshire drivers with a state license plate.
“Why don’t we ask our neighbors,” to pay a toll increase. “We are getting the best of all worlds,” by passing the bill, he said, including “protecting our residents” and having resources for improvements to the turnpike system.
Sen. Gannon, R-Sandown, asked McConkey if there are any studies on impacts near the border on businesses.
If implemented, McConkey said the state will be the 27th lowest in per mile cost still. McConkey said the bill would also increase from seven to 14 days the amount of time for those with NH license plates to pay for a toll adding there are other states that also have different rates for out-of-state users.
The Hampton toll cost would go from $2 to $3, while Hooksett and Bedford would rise from $1 to $2 for out-of-state plates.
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New Hampshire currently has the lowest rate per mile among states with tolls roads. The governor said she does not support a toll increase.
“We are not going to put a burden on drivers for a toll increase,” Ayotte said. “Families are struggling.”
WILTON, N.H. (WHDH) – A woman died in a Wilton, New Hampshire, house fire Wednesday morning, according to the New Hampshire State Fire Marshal’s Office.
At 9:08 a.m., Wilton firefighters responded to Burns Hill Road after a caller said their home was filling up with smoke. When they arrived, a single-family home was on fire and they found out two people were still inside on the second floor.
A man and a woman were both taken out of the house by firefighters and taken to Elliott Hospital. The woman was pronounced dead and the man is in serious condition.
Officials have not released the name of the victim at this time.
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At this time, investigators are looking into the cause of the fire and are trying to determine if a power outage in the area played a factor. The fire is not currently considered suspicious.
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