Taxes and tariffs

   

     If you want to know where a great deal of time and energy goes in Washington, DC, look no further.
     Especially now, when Republicans are using the strong advantage of controlling all three branches of government. It's like candy on Halloween. Except they're all fighting over the same bits of chocolate. Well, pretty much like Halloween!
     If we could do two things, we the American people would benefit greatly.
     First, roll tax code back to 2016 and reset the debate. That would get rid of Trump's cuts for the wealthy and force everyone back to the table.
     Second, place a moratorium on legislation regarding taxes and tariffs for 75% of every calendar year. If the Senate and House work a full twelve months, then they could only introduce and pass tax-tariff legislation for three months of the year. If they work six months, then only 1-1/2 months.
     Make them work on legislation that is not "tax" - focus instead on SNAP, or immigration, or civil rights, or hey! How about voting rights?!
     Sound good to you? Let's make it so!
     PS #1: Almost any macroeconomics professor will tell you that taxation is the government's way to control the spending of individuals and corporations. Want them to save? Lower taxes on interest. Want them to spend lots of money? Give companies bonus depreciation for capital expenditures.
     Think about this when you hear debates over taxes and tariffs. A lot becomes clear...
     PS #2: As you read proposed legislation, take note of how broad the scope and how many areas of our lives are directly affected by tax legislation. From AI to healthcare to R&D and beyond.

Proposed legislation:

  • August 16, 2025 - September 19, 2025: 
  • July 17, 2025 - August 15, 2025: Republicans: Above-the-line deduction for flood insurance premiums; port crane tax credit; transfer all unobligated IRS funds to border patrol; suspend de minimis tariff exemptions.  Democrats: Tax credit for teachers who tutor; tax incentives for local newspapers and other local media; exemption from tariffs for items related to baby care and butrition; first time homebuyer tax credit; no tax on overtime; reinstate ACA subsidies; exempt small business from tariffs; R&D tax credit. Bipartisan: Tax credits for companies that provide retirement plans; R&D credits for mitigation of drug threats; coverage of hearing aids; loggers economic assistance; infertility tax credit; ABLE accounts.
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© 2025, 2026 Denise Elaine Heap. Please contact me for permission to quote.

     Photo: Historical placque at the city limits of Carlisle, Pennsylvania. The first test of federal power came when the new Congress enacted a whiskey tax. Photo © 2022 Denise Elaine Heap.
     Fun fact: George Washington road down the street in front of my house on his way to and from Carlisle, where he put down the Whiskey Rebellion. Legend has it he had his horse shod at the Tate farm, 1/4 mile from my front door.