Key Takeaways
- Tax Legislation
- Crypto
- Trade Policy
- International Tax
- Tariffs
- In the Courts
- Hot Dog Day
Tax Legislation
Senate Braces for Another Vote-a-Rama on Rescissions Package – Lillianna Byington, Bloomberg ($):
Senate Republicans are putting a roughly $9 billion package of cuts on the floor this week, which can pass with just a simple majority. But before that, it’s expected to be subject to another stretch of back-to-back amendment votes. Senators are reluctantly preparing for the possibility of the typically lengthy and often overnight voting session.
Doubt Growing on Chances for Second Reconciliation Bill This Year – Cady Stanton & Doug Sword, Tax Notes ($):
Another partisan GOP bill this year, whether with or without tax provisions, would face numerous hurdles, including the lack of major deadline pressure and fatigue from recent weeks of both interparty and intraparty fighting on the One Big Beautiful Bill Act (OBBBA; P.L. 119-21).
Farming, Whaling, Fishing, and Guns Get Tax Breaks in New GOP Law – Katie Lobosco, Tax Notes ($):
The core of the new law (P.L. 119-21), which has $12.5 trillion in tax provisions, makes the individual tax rate cuts provided by the Tax Cuts and Jobs Act permanent. It nearly doubles the standard deduction and the child tax credit and permanently extends some business tax provisions, like full and immediate expensing for research and development costs.
Crypto
Crypto on Tap After Tax Megabill, but Goodwill in Short Supply – Chris Cioffi, Bloomberg ($):
The House effort starts with a Ways and Means subcommittee hearing Wednesday on digital asset policy, where lawmakers will hear from the Blockchain Association and Fidelity Investments, among others. Senate Finance Committee Chair Mike Crapo (R-Idaho) said his panel was still forming its agenda, but pointed to bipartisan issues like trade, retirement, and the House-passed bill providing tax treaty-like benefits to Taiwan.
Trump Says GOP Crypto Dispute Resolved After Meeting – Yash Roy & Maeve Sheehey, Bloomberg ($):
A faction of Republican hardliners had demanded changes to a Senate-passed stablecoin regulation bill and joined with Democrats to defeat a procedural step needed to begin consideration of the crypto bills. The loss disrupted a planned legislative press Trump had promoted as “Crypto Week.”
Trade Policy
DSTs Expected to Play a Bigger Role in Trade Talks – Jonathan Curry, Tax Notes ($):
Republicans had a tax threat against DSTs lined up with the proposed section 899 retaliatory tax in the One Big Beautiful Bill Act (P.L. 119-21), but with that bill now signed into law sans section 899, the Trump administration seems likely to lean on trade disputes to get its way.
Republicans scored a victory in late June when the G7 announced a deal effectively giving its stamp of approval to the United States' preferred approach, under which its international tax system will exist alongside the OECD’s pillar 2 system. That deal entailed the G7 agreeing to exempt U.S. businesses from pillar 2 taxes like undertaxed profits rules and income inclusion rules.
International Tax
Countdown Begins for Pre-OBBBA International Tax Planning – Jonathan Curry, Tax Notes ($):
“We effectively have two tax systems,” Cory Perry of Grant Thornton LLP said, noting that for the rest of this year, the existing global intangible low-taxed income and foreign-derived intangible income regimes will apply. But in 2026 the new tax system installed by the One Big Beautiful Bill Act (OBBBA; P.L. 119-21) takes effect.
Tariffs
Rising Inflation Underscores Risks in Trump’s New Tariff Threats – Tony Romm & Colby Smith, New York Times:
The risks in Mr. Trump’s economic strategy began to show on Tuesday, with the release of data that found inflation had accelerated in June. Prices rose noticeably on appliances, clothing and furniture, products that are all heavily exposed to the president’s taxes on imports from Canada, China and other major trading partners.
The inflation report undercut Mr. Trump’s continued assertions that Americans would not face financial repercussions from his increasingly aggressive trade brinkmanship. Since taking office, the president has imposed withering duties on allies and adversaries alike, with additional taxes on a range of products such as cars and steel.
Trump Says Drug Tariffs Probable by Aug. 1, Downplays More Deals – Jennifer A. Dlouhy & Justin Sink, Bloomberg ($):
“Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” Trump told reporters Tuesday as he returned to Washington after attending an artificial intelligence summit in Pittsburgh.
Trump Says US Has Struck Trade Deal With Indonesia – Craig Clough, Law 360 ($):
Trump made the announcement in a Truth Social post and in comments to reporters at the White House, telling them he spoke to Indonesian President Prabowo Subianto, calling him "a really great president, very popular, very strong, smart, and we made the deal."
In the Courts
Trump Admin Seeks Win in Harvard $2B Funding Freeze Case – Dorothy Atkins, Law 360 ($). “The Trump administration urged a Massachusetts federal judge Monday to grant it summary judgment in Harvard University's lawsuit challenging the government's effort to freeze $2.2 billion in funding, arguing the dispute is a contract fight that belongs in the Federal Claims Court and the allegations fail on the merits.”
Tax Court Warns Attys In Denying $20M Easement Deduction – Anna Scott Farrell, Law 360 ($). “The U.S. Tax Court threatened Tuesday to force attorneys for a Georgia partnership to personally pay court costs after they had argued at trial for a $20 million tax deduction for a conservation easement donation, an amount the court said was over 100 times the land's value.”
What Day is it?
Whether you’re going to a ball game or just grilling in the backyard, it’s a perfect day for National Hot Dog Day! I prefer mine with ketchup and onions, yum!
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