Republicans plan to raise taxes on stock buybacks and sports teams

In the United States, House Republicans are preparing to renew President Donald Trump’s 2017 tax cuts, which may involve implementing several tax increases aimed specifically at businesses and high-income earners. The proposals under consideration include the elimination of tax breaks for sports team owners. Currently, these owners can deduct the costs of purchasing their teams over a 15-year period, a practice lawmakers might soon end. Additionally, Congress is considering raising the 1% tax on stock buybacks, although the new rate has not been publicly disclosed yet. Another potential change involves the endowment tax on universities, which was established in 2017 and currently stands at 1.4%. Lawmakers are expected to discuss a potential increase in this tax as part of their broader discussions. In tandem with these proposed changes, there’s consideration of placing a new limit on state and local tax deductions for corporations, which could have significant implications for a wide range of businesses across the country. Republicans have been grappling with their individual votes on these measures, which are crucial for passing any new legislation. As they navigate internal party dynamics, there are varying opinions on these proposals, particularly regarding the state and local tax (SALT) deduction. While some Republican lawmakers from high-tax states like New York and California are advocating to increase the SALT cap to ensure that the proposals do not disproportionately affect their constituents, others argue that the SALT deduction is merely a federal subsidy that could encourage local tax increases. Amid these discussions, President Trump’s position on taxation appears to be shifting. He has expressed a desire to focus on tax relief for those earning under $200,000, making him hesitant to endorse further tax increases on high-income individuals. Despite the increasing pressures from within his party to embrace a more populist stance—which could include raising taxes on wealthier earners—Trump’s administration seems primarily focused on generating legislation that prioritizes tax cuts for the middle class, which he championed during his campaign. The landscape remains fluid, and the final outcomes hinge on ongoing negotiations within the party that will affect future tax policy.