Tag: tax

  • Newsom bill could spend tax money to defend illegal immigrants from Trump deportation push: CA lawmaker

    Newsom bill could spend tax money to defend illegal immigrants from Trump deportation push: CA lawmaker

    California Republican Rep. Bill Essayli is seeking answers from liberal Gov. Gavin Newsom’s administration about whether bills introduced in the legislature’s special session to “Trump-proof” the state would thwart the president’s mass deportation program.

    During a hearing on Tuesday to discuss two bills that Newsom has proposed, which allocates a $50 million initiative to bolster the state’s legal defenses against anticipated federal policies from President Donald Trump’s administration, Essayli questioned officials from Newsom’s office about whether the funds would be used “to defend illegal immigrants from deportation.”

    “It’s not very clear to me, but basically, these groups provide free legal services to illegal immigrants,” Essayli told Fox News Digital in an interview. “And what I wanted to know is, if they’re going to be defending illegal immigrants from deportation who have criminal records, and they could not answer the question. I think the answer is, absolutely they are.”

    IS NOW THE RIGHT TIME … TO FIGHT DONALD TRUMP?’: CA HOUSE SPEAKER DODGES FIERY QUESTIONING FROM REPORTER

    California Assemblyman Bill Essayli questions state officials on whether money in a bill before the assembly could be used to defend criminal illegal immigrants from deportation. (California State Assembly)

    During the hearing, Essayli asked one of Newsom’s officials if the money would be used to defend criminal illegal immigrants from deportation.

    “Assembly member, as a budget staffer, I can only tell you what the grant is for, I don’t know that I can get you that level of guarantee,” she responded.

    She later added she’s “not certain about that” when asked further if any funds given to nonprofit organizations would go to defending criminal illegal immigrants.

    Newsom’s proposal includes earmarking $25 million to the California Department of Justice to enhance its capacity to sue the Trump administration over policies that could “harm Californians,” including environmental regulations and abortion access. An additional $25 million is designated for nonprofit organizations to defend “immigrant families.”

    ‘DEVASTATING’: CALIFORNIA HAD RECORD RAINFALL LAST YEAR, BUT LACKED INFRASTRUCTURE TO STORE IT

    Newsom and Trump meet on tarmac at airport

    Newsom and Trump face off during the president’s trip to California to survey wildfire damage. (Fox News)

    “All of this is for show, just to say, ‘Oh, we had a public hearing on these bills,’ and then we’re supposed to vote,” Essayli said. “We didn’t get any questions answered.”

    Spokesperson for Newsom’s office, Brandon Richards, told Fox News Digital in a statement that “none of this funding will be used to support immigration-related services for criminals. Period.”

    Fox News Digital followed up with Newsom’s office inquiring whether funds would be used to defend any illegal immigrants in California from deportation. In response, Richards repeated his previous statement. 

    The Trump administration has been moving full steam ahead with first deporting illegal immigrants who have already been convicted of committing crimes. In the last week, the Department of Homeland Security said that “law enforcement officials have removed and returned 7,300 illegal aliens.”

    NEWSOM PROPOSES $25M FROM STATE LEGISLATURE TO ‘TRUMP-PROOF’ CALIFORNIA

    President Donald Trump seated

    President Donald Trump after signing executive orders in the Oval Office of the White House on Thursday, Jan. 23, 2025. (Yuri Gripas/Abaca/Bloomberg via Getty Images)

    Newsom called a special legislative session quickly after Trump’s electoral victory to secure additional funding for the state’s legal defense against the administration. Reacting to the development on his TruthSocial account at the time, Trump said, “He is using the term ‘Trump-Proof’ as a way of stopping all of the GREAT things that can be done to ‘Make California Great Again,’ but I just overwhelmingly won the Election.”

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    The state has a history of legal battles with the Trump administration, having filed 123 lawsuits during his first term, primarily concerning environmental, illegal immigration and healthcare issues. California was also among the first states to establish itself as a “sanctuary state” for transgender transition treatments for minors, a practice that Trump barred from receiving federal support through an executive order on Wednesday.

    The California Senate has already approved Newsom’s proposal, and the Assembly will vote Thursday. If the Assembly passes the measures without amendments, they will be sent to Newsom’s desk by Friday.

    Fox News Digital’s Sarah Rumpf-Whitten contributed to this report.

  • Trump proposes abolishment of federal income tax, bringing US back to ‘richest period’ in history

    Trump proposes abolishment of federal income tax, bringing US back to ‘richest period’ in history

    Pitching a monumental and potentially controversial proposal to his Republican allies, President Donald Trump is seemingly floating the idea of scrapping federal income taxes altogether.

    “We had no income tax. The income tax came in…1913. As I said in my speech last week, instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens,” Trump said during his conference address in Doral, Florida, on Monday.

    “It’s time for the United States to return to the system that made us richer and more powerful than ever before,” he added. “You know, the United States in 1870 to 1913, all tariffs. And that was the richest period in the history of the United States, relatively speaking.”

    The first federal income tax was passed on February 25, 1913, as part of the 16th Amendment. This gave Congress constitutional authority to levy taxes on corporate and individual income, according to the Internal Revenue Service (IRS).

    WHITE HOUSE ECONOMIST TEASES THE ‘BIGGEST’ FISCAL REFORM ‘AMERICAN HAS EVER SEEN’

    U.S. Treasury data indicates that $4.92 trillion was collected in federal income taxes for the 2023 filing year. But as Trump plans to create a new “External Revenue Service” that would be tasked with collecting revenue from tariffs, economists and market experts seem mixed, with some pushing back and noting that U.S. importers bear the brunt of the cost of tariffs rather than firms overseas.

    President Donald Trump pitched the idea to eliminate federal income tax during his address at a GOP conference in Doral, Florida, on Monday. (Getty Images)

    “Tariffs are not external revenue; they are taxes on U.S. importers that shrink both the U.S. economy and U.S. incomes. Higher tariffs will create a drag on the U.S. economy and will threaten to offset the benefits of tax cuts elsewhere. They should not be relied upon as a major source of tax revenue,” Tax Foundation Vice President Erica York previously told FOX Business.

    “Markets like certainty. So if you tell me, ‘10% tariff,’ if I’m a company like GM, I can handle that,” Taylor Riggs, “The Big Money Show” co-host, pointed out on Tuesday. “If you tell me that every month it’s going up by 2.5%, I have a hard time planning around that, because how do I figure out: do I buy the goods now? What if the tariffs go up? Is it a negotiating tool?”

    “This whole idea about eliminating the income tax, or redefining it and coming in with a 10% tariff tax and giving an income tax break to Americans, encourages them to work more, in my opinion, encourages them to spend more, in my opinion,” Slatestone Wealth chief market strategist Kenny Polcari also chimed in.

    “So then you end up having a stronger and better economy,” Polcari continued. “I think the market likes it.”

    During his successful campaign to return to the White House, Trump touted plans to impose an across-the-board tariff of 10% or 20% – as well as a larger tariff of 60% on goods imported from China.

    He also threatened to impose a 25% tariff on goods from Canada and Mexico, which are both parties to the U.S.-Mexico-Canada Agreement (USMCA) – a free trade agreement Trump negotiated during his first term as a successor to the North American Free Trade Agreement (NAFTA).

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    More recently, President Trump also teased moving nearly 90,000 IRS agents hired under the Biden administration to the border to patrol the area.

    Democrats in 2022 approved $80 billion in funding for the IRS, including hiring roughly 87,000 new agents across a 10-year period as part of the Inflation Reduction Act. President Joe Biden signed the legislation into law that year.

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    FOX Business’ Eric Revell and Fox News’ Emma Colton contributed to this report.

  • NJ files lawsuit seeking to stymie Hochul’s NYC driving tax after asking Trump for help

    NJ files lawsuit seeking to stymie Hochul’s NYC driving tax after asking Trump for help

    New Jersey Gov. Philip Murphy announced the Garden State updated its lawsuit against the federal government over the Biden-era approval of New York’s “congestion pricing” that the Democrat claims is burdening working-class residents.

    The news comes days after Murphy wrote a letter to President Donald Trump seeking assistance and “common ground” on an issue the Republican also railed against.

    Approved in the waning days of the Biden administration, a $9 fee is charged for vehicles traversing below Central Park, or 60th Street, by the state-owned MTA. 

    NJ RESIDENTS HIT WITH DOUBLED BILLS AS LAWMAKERS FUME AT MURPHY’S ‘ENERGY DISASTER PLAN’, DEMAND HEARINGS

    Murphy said the Federal Highway Administration [FHWA] wrongly “fast-tracked” approval of the tolling plan that New York Gov. Kathy Hochul and MTA Chairman Janno Lieber said would reduce gridlock, improve the environment and erase red ink on the New York City transit ledger.

    “The decision by the federal government and the MTA to fast-track a proposal that solely benefits New York’s transportation system at the expense of hardworking New Jerseyites must be reevaluated and rescinded,” Murphy said in a statement, adding the “scheme” is causing “financial strain” on his constituents.

    Murphy, New York City and Trump (Getty)

    New Jersey officials said the tolls are affecting commuters both financially and geographically.

    While drivers entering Manhattan via the Holland and Lincoln tunnels receive a small “rebate” on the driving tax, those who cut through Staten Island or cross the George Washington Bridge (GWB) receive no benefit.

    In its amended complaint, New Jersey alleged the FHWA appeared to miss the effects that added traffic at the world’s busiest bridge would have on urban Bergen County communities already facing unfavorable air quality.

    “Fort Lee has pre-existing pollution and chronic disease burdens at the 90th percentile. Under the congestion pricing scheme, Fort Lee is one of the communities with the ‘highest propensity for truck diversion if the proposed action is implemented,’” the lawsuit said, describing the city on the Jersey side of the GWB.

    Murphy said the feds cannot “continue to turn a blind eye to the significant environmental impacts that congestion pricing will have on New Jersey, favoring New York at the expense of its neighbors.”

    As Hochul and Lieber continue full steam ahead with the tax, suburban drivers have expressed outrage, including those from Long Island, who, because of the placement of toll gantries, cannot leave Manhattan without paying even if they do not intend to drive into the business district. 

    NJ GOV SAYS HE’LL ‘FIGHT TO THE DEATH’ AGAINST TRUMP ACTIONS CONTRARY TO ‘VALUES’

    The tax is compounded by the $17 charged by the Port Authority to leave New Jersey eastward across water.

    Last week, Murphy demanded that the bi-state agency’s chairman — Chris Christie appointee Kevin O’Toole — provide monthly data on revenue from changes in driving patterns for those trying to avoid New York’s new fees.

    “The statistical information we are requesting will help us advocate for our commuters and the broader region as we fight this unfair policy,” Murphy said.

    While Murphy previously pledged to “fight to the death” against White House attacks on New Jersey “values” and communities, he also said he would work with the administration when finding common ground.

    In a letter to Trump, Murphy noted the president pledged to “terminate congestion pricing in [his] first week in office” as a “massive business-killer” and had knocked Hochul for devising the “worst plan in the history of womankind.”

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    “I am open to congestion pricing in concept, but New York’s scheme has never been well-designed or adequately studied,” Murphy wrote, asking Trump for assistance and noting Hochul’s “indefinite pause” on the program only lasted until it was clear former Vice President Kamala Harris would not win the election last November. 

    N.J. Assembly Transportation Committee member Christopher DePhillips offered bipartisan support for Murphy’s position, telling Fox News Digital that while he backs the governor’s goal of ending the “scheme,” it will take Trump to “kill it.”

    “I would also like [Murphy] to apply the same effort he puts forth to stop the congestion pricing to help the mass transit riders at home. Drivers shouldn’t have to pay more to cross into Manhattan, and [NJ Transit riders] shouldn’t have to pay 15% higher fares,” said DePhillips, R-Wyckoff.

    Hochul recently said she has tried to work with New Jersey to avoid ongoing litigation.

    She said Albany offered a “generous” nine-figure settlement that Trenton rejected.

    Janno_Lieber_Hochul_NY

    MTA Chairman Janno Lieber and New York Gov. Kathy Hochul (Getty)

    “We’ve made multiple offers to settle this lawsuit. I wish I could describe them to you because you would say they’re generous. I’m not at liberty to do that,” she told New York Streetsblog.

    Members of Congress from Big Apple suburbs called for Lieber’s ouster after he held a ceremony to unveil tolling signs on Broadway.

    “Imagine being such an a–hole as to celebrate screwing New Yorkers out of their hard-earned money just for the privilege to drive to work,” Rep. Michael Lawler, R-Nyack, said.

    MTA executive John McCarthy said in response that Lieber has overseen better service and on-time performance and that “out-of-touch politicians” are simply “bloviating.”

    The FHWA did not immediately respond to a request for comment.

  • Thomas Massie says he loves teenage Boy Scout’s policy proposal: Zero tax for workers younger than 18

    Thomas Massie says he loves teenage Boy Scout’s policy proposal: Zero tax for workers younger than 18

    Rep. Thomas Massie, R-Ky., noted that a Boy Scout proposed a policy of not taxing workers younger than age 18.

    The congressman from the Bluegrass State listed several reasons why he loves the idea.

    “A 15 yr old Boy Scout working on his merit badge just sent me this idea: No taxes on workers under 18 yrs old. I love it because: 1. They need experience to pick a college major 2. They need to develop a work ethic 3. The economy needs more workers 4. They don’t get to vote,” Massie wrote in a post on X.

    MASSIE AND OTHER REPUBLICANS PUSH ‘NATIONAL CONSTITUTIONAL CARRY ACT’ TO PROTECT AMERICANS’ GUN RIGHTS

    Rep. Thomas Massie, R-Ky., is seen outside the U.S. Capitol on Wednesday, December 18, 2024 (Tom Williams/CQ-Roll Call, Inc via Getty Images)

    Someone responded to the lawmaker, suggesting that youths “don’t make enough money for the most part and get it back when they file taxes. It is a good lesson on how to file taxes and gives them a chance to get a return,” the person opined.

    Massie replied, “Sounds like conditioning to be sheeple. Hard pass.”

    Rep. Lauren Boebert, R-Colo., indicated that high minimum wages box young people out of the job market.

    REPUBLICAN LAWMAKERS PUSH TO ABOLISH ‘UNCONSTITUTIONAL’ ATF

    Rep. Lauren Boebert

    Rep. Lauren Boebert, R-Colo., speaks with reporters as she leaves the U.S. Capitol for the weekend on May 17, 2024 in Washington, D.C. ( Kevin Dietsch/Getty Images)

    “So many of our youth have lost the opportunity to enter the workforce due to high minimum wage requirements. High taxes, insurance, and paid leave requirements are a few of many issues as well. Small business owners are unable to invest in first-time workers or provide them with skills training for their future,” she tweeted.

    “Great points!” Massie replied.

    He has previously suggested that the U.S. should nix the federal income tax entirely.

    MASSIE DROPS COLORFUL ANALOGY OPPOSING FOREIGN AID, MOCKS SPEAKER JOHNSON WITH AI-GENERATED IMAGE

    Left: Rep. Lauren Boebert; Center: Rep. Thomas Massie; Right: Rep. Chip Roy

    Left: Rep. Lauren Boebert, R-Colo., during a House Oversight and Accountability Committee hearing in Washington, D.C., on Monday, July 22, 2024; Center: Rep. Thomas Massie, R-Ky., is seen outside the U.S. Capitol on Wednesday, Dec. 18, 2024; Right: Rep. Chip Roy, R-Texas, attends the inauguration of U.S. President-elect Donald Trump in the Rotunda of the U.S. Capitol on Jan. 20, 2025 in Washington, D.C. (Left: Tierney L. Cross/Bloomberg via Getty Images; Center: Tom Williams/CQ-Roll Call, Inc via Getty Images; Right: Kevin Dietsch/Getty Images)

    “The federal income tax was unconstitutional for most of our [country’s] existence. The founders of this country would have never agreed to it. We should repeal it,” he tweeted in February 2024.

    Massie has also spoken out against foreign aid.

    “My position of ‘no foreign aid’ might sound extreme to some, but it’s far more extreme to force future generations of Americans into indentured servitude to our foreign creditors,” he noted in a 2023 post.

  • Taxpayers leaving thousands of dollars on the table at tax time: expert

    Taxpayers leaving thousands of dollars on the table at tax time: expert

    Tax season officially begins Monday when the Internal Revenue Service (IRS) will begin accepting returns for the 2024 tax year, but taxpayers should be aware of deductions and credits that could be worth thousands before they file, a tax expert warns.

    Karla Dennis, CEO and founder of KDA, Inc., a tax strategy agency, told FOX Business that taxpayers run the risk of leaving upwards of $2,500 to $5,000 on the table due to a lack of awareness of certain tax credits and deductions that they may be eligible to claim and reduce the amount of taxes they’re on the hook for.

    “Many taxpayers are leaving money on the table,” Dennis said. “I’ve been in the industry for 30-plus years and when I work with individuals taxes and talk with them, I realize they’re very unaware of a lot of the various tax credits that they can use to offset their tax liability.”

    Various tax credits and deductions are available to taxpayers who’ve spent money on certain activities such as education, medical expenses, state and local taxes and more.

    IRS ANNOUNCES START OF TAX SEASON – WHAT TO KNOW

    Taxpayers should familiarize themselves with tax credits and deductions they may be eligible for prior to filing their tax return. (Michael Bocchieri/Getty Images / Getty Images)

    “Many taxpayers are changing careers, they’re going back to school, they’re getting higher education, and they’re not familiar with the lifetime learning credit, the American opportunity credit, and these can help to reduce their overall tax liability,” Dennis said.

    She added that the American opportunity credit can be refundable for up to $1,000 which can be helpful for people looking to pay for classes and other expenses while in school.

    Dennis said that taxpayers should monitor their spending on healthcare activities over the course of the year because they can be eligible for the medical expense deduction if that spending exceeds 7.5% of their adjusted gross income. For example, based on an income of $50,000 the taxpayer can deduct expenses above $3,750.

    IRS TO SEND UNCLAIMED TAX REBATES TO 1M AMERICANS

    businessman with hand over piggy bank

    Tax credits and deductions can help taxpayers minimize their tax liability. (iStock / iStock)

    “They need to take advantage of writing off their insurance premiums if they’re not pre-tax through an employer,” Dennis explained. 

    “There’s the long-term care premiums that are a write-off, in addition to the co-pay for going to the doctor, to the emergency room, to the office visit, the pharmaceutical payment you make to the pharmacy to get prescriptions filled,” she added. “Even driving to and from the doctor you can take the mileage as a write off.”

    The state and local tax (SALT) deduction is available up to a cap of $10,000 for taxpayers who itemize their returns. Dennis said taxpayers claiming the deduction should make sure they’re aggregating their income taxes, property taxes and DMV fees.

    IRS INCREASES 401(K), OTHER 2025 RETIREMENT PLAN CONTRIBUTION LIMITS

    IRS headquarters

    The IRS’ tax filing season for the 2024 tax year begins Monday, Jan. 27. (Photo by J. David Ake/Getty Images / Getty Images)

    Dennis said that individual taxpayers should “be mindful and realize that taxes are all year from January to December” so they should consider talking to a tax advisor earlier in the year to plan ahead.

    She recommends that taxpayers do what she calls her “12 by 12” in which they look at their expenses for each month of the year one at a time over the course of a 12-day period, which she believes helps taxpayers avoid feeling overwhelmed at the last minute and forgetting things that could’ve saved them money when they filed their taxes.

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    Dennis added that taxpayers may benefit from pausing before filing their return once it’s ready to be filed so that they can think about something they may have forgotten so that they can add it before filing and avoid having to amend their return.

  • Trump outlines tax cuts, tells World Economic Forum ‘make your product in America’

    Trump outlines tax cuts, tells World Economic Forum ‘make your product in America’

    President Donald Trump on Thursday delivered remarks virtually to the World Economic Forum in Davos, Switzerland, in which he discussed how his tax plans will look to incentivize companies to make products in America or face tariffs.

    “To further unleash our economy, our majorities in the House and Senate, which we also took along with the presidency, are going to pass the largest tax cut in American history, including massive tax cuts for workers and families and big tax cuts for domestic producers and manufacturers,” Trump said. 

    Portions of the original Trump tax cuts – including the lower tax rates for individuals as well as the expanded standard deduction and child tax credit – are due to expire at the end of 2025 if they’re not extended. Trump said, “We’re working with the Democrats on getting an extension of the original Trump tax cuts, as you probably know by just reading any paper.”

    “My message to every business in the world is very simple: come make your product in America and we will give you among the lowest taxes of any nation on earth. We’re bringing them down very substantially, even from the original Trump tax cuts,” the president said.

    TRUMP DRAWS BIG INVESTMENTS IN U.S.A. SINCE ELECTION WIN

    President Donald Trump outlined his tax plans in a speech to the World Economic Forum and urged companies to make products in America to avoid tariffs. (Scott Olson/Getty Images / Getty Images)

    “But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff,” he said. “Differing amounts, but a tariff, which will direct hundreds of billions of dollars and even trillions of dollars into our treasury to strengthen our economy and pay down debt.”

    Trump campaigned on an across-the-board tariff on all imports in the 10% to 20% range, along with a 60% levy on goods from China. 

    Since taking office, he indicated he’s planning to start with a 10% tariff on China, plus 25% tariffs on Canada and Mexico that could begin as early as Feb. 1.

    JAMIE DIMON SAYS TARIFFS CAN BE POSITIVE FOR NATIONAL SECURITY, EVEN IF INFLATIONARY: ‘GET OVER IT’

    Trump speaks with SoftBank CEO

    U.S. President-elect Donald Trump delivers remarks next to Chairman and CEO of SoftBank Masayoshi Son, at Mar-a-Lago in Palm Beach, Fla., on Monday, Dec. 16. (Reuters/Brian Snyder / Reuters)

    “Under the Trump administration, there will be no better place on earth to create jobs, build factories, or grow a company than right here in the good old USA,” the president told the Davos audience.

    Trump went on to cite several recent investment announcements as signs of growing business optimism about the U.S. economy, including several investment deals he helped facilitate.

    SAUDI PRINCE EYES $600B INVESTMENT IN US OVER NEXT 4 YEARS: REPORT

    President Donald Trump and Saudi Arabia's Crown Prince Mohammed bin Salman

    Saudi Arabia’s Crown Prince Mohammed bin Salman shakes hands with U.S. President Donald Trump, at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS/File photo / Reuters Photos)

    “SoftBank has announced between a $100 and $200 billion investment in the U.S. economy because of the election result, and just two days ago, Oracle, SoftBank and OpenAI announced a $500 billion investment in AI infrastructure,” he said.

    “Other companies likewise have announced billions and billions and billions adding up to trillions of investment in America,” Trump continued. Among those other deals is a $20 billion investment by UAE-based firm DAMAC, which is planning to build data centers in the Sun Belt and Midwest.

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    “And it’s also reported today in the papers that Saudi Arabia will be investing at least $600 billion in America, but I’ll be asking the crown prince – who’s a fantastic guy – to round it out to around $1 trillion,” the president said. “I think they’ll do that because we’ve been very good to them.”