Let Your Voice be Heard by Congress; 5 Minute Survey
Reconciliation Update – Senate Tees Up Budget Resolution Markup While House Remains Deadlocked: On Feb. 7, Senate Budget Committee Chairman Lindsey Graham (R-SC) released an initial Fiscal Year (FY) 2025 Budget Resolution, as well as summary tables, as the committee prepares to craft a blueprint that will enable Republicans to later advance a second reconciliation bill. Senate Republicans have been moving ahead with a two-bill reconciliation approach, which will prioritize border security, defense spending and energy independence in the first bill while taking up tax issues, including extending the Tax Cuts and Jobs Act (TCJA, Pub. L. 115-97) and addressing other tax proposals, in a subsequent reconciliation bill under a FY 2026 budget resolution. The Senate Budget Committee is scheduled to mark up the FY 2025 Budget Resolution on Feb. 12 and 13.
Trump Considering Proposals to End Carried Interest and Tax Sports Team Owners: In a meeting with Republican lawmakers on Feb. 6, President Trump added two new proposals to his list of tax policy priorities. The first, ending the tax special treatment of carried interest, is a reprise of a proposal from his first administration that would tax gains from certain partnership arrangements common in private equity and hedge funds, as well as some venture capital firms, as ordinary income rather than capital gains. President Trump previously called for ending carried interest during his first administration, and the Tax Cuts and Jobs Act (Pub. L. 115-97) included an extension of the capital-asset holding period from one year to three years to address the issue. The president did not provide details on how his current proposal would further modify the treatment of carried interest.
Trump Imposes Tariffs on China: On Feb. 5, President Trump issued an executive order (EO) amending the previously imposed 10% tariffs on China, to allow goods to enter the United States under existing de minimis provisions, permitting goods valued below $800 to enter the United States duty free. Under the EO, de minimis treatment will be available for imports of goods from China until the secretary of commerce notifies the president that “adequate systems are in place to fully and expediently process and collect tariff revenue” from such goods. The new EO does not revoke the Feb. 4 10% tariff on Chinese goods that are not eligible for de minimis treatment.
Trump Announces Intention to Issue ‘Reciprocal’ Tariffs: On Feb. 7, President Trump previewed additional “reciprocal” tariffs he intends to impose on countries that have duties imposed on U.S. imports. Speaking alongside Japanese Prime Minister Shigeru Ishiba, the president emphasized that the trade deficit with Japan must be eliminated but did not specify whether Japan or other nations would be subject to the reciprocal tariffs. President Trump has previously raised concern with trade and tariff imbalances between the United States and the European Union, as well as other countries.
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