The Millionaire Tax Hike, The Solar Energy Industries Association, and the State Bar of California
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Tax Policy/News:
April 28: IRS to lay off taxpayer experience, DEI staff
The IRS has issued job termination notices to employees in its Taxpayer Experience Office and its Office of Equity, Diversity and Inclusion in Taxpayer Services as part of plans to cut thousands of employees.
The Taxpayer Experience Office, established in 2022, aimed to improve service to taxpayers by simplifying IRS notices and enhancing online account functionality. Staff were informed in a town hall meeting that all employees in the office would be laid off in 60 days.
The cuts follow the Trump administration's decision to end Direct File, the IRS's free online filing service, which has been criticized as undermining public trust. The Office of Equity, Diversity and Inclusion in Taxpayer Services will also see layoffs, reversing efforts under the Biden administration to staff up at the IRS.
The agency has faced leadership turnover and controversy over sharing taxpayer data with immigration enforcement officials. The IRS did not respond to requests for comment on the layoffs or the end of Direct File.
April 28: White House sets new July 4 deadline for Trump tax agenda
Treasury Secretary Scott Bessent announced that July 4 is the new deadline for lawmakers to pass President Trump's ambitious tax agenda. The package includes making the 2017 tax cuts permanent, eliminating taxes on tips, overtime, and Social Security, as well as immigration reform, Pentagon funding, an increase in the debt ceiling, and steep spending cuts.
Bessent and Kevin Hassett, the director of the National Economic Council, met with Speaker Mike Johnson, Senate Majority Leader John Thune, and top tax writers to discuss the plan. While the House aims to pass the measure by Memorial Day, many Senate Republicans view this goal as unrealistic.
The announcement comes ahead of the Treasury Department's updated projection of the X date, when the U.S. will exhaust its ability to pay the national debt. The X date is expected in the summertime and could complicate GOP plans if it is bumped up closer to July 4. Bessent assured that the debt ceiling will be raised one way or another, stating, "The U.S. will never miss the X date."
April 24: Trump and Speaker Mike Johnson shoot down millionaire tax hike
President Donald Trump and House Speaker Mike Johnson have opposed a tax increase on millionaires, closing the door on an idea some Republicans considered to fund their massive party-line bill.
Trump argued that raising taxes on the wealthy would cause them to leave the country, resulting in a loss of tax revenue. The tax rate on the highest earners is set to increase from 37% to 39.6% at the end of the year when portions of Trump's 2017 tax cuts expire.
Some Republicans had suggested allowing the top rate to increase to limit the deficit impact of their agenda, which includes tax breaks and spending increases on immigration enforcement and the military. Johnson also rejected the idea, stating that the party traditionally opposes raising tax rates. The rejection complicates the task of crafting legislation without ballooning the debt, as extending Trump's 2017 tax law is projected to cost $4.6 trillion.
The internal GOP debate reflects the party's shifting coalition, with college-educated and wealthier voters moving toward Democrats and Republicans gaining among working-class voters. A Pew Research Center poll found that 58% of U.S. adults support higher taxes on households making over $400,000 per year, including 43% of Republicans. Democrats have criticized Republicans for not addressing the high cost of living while pursuing tax cuts for the wealthy.
April 23: IRS turmoil: Leadership churn, worker exodus and threats to groups’ tax-exempt status roil agency
The IRS is facing significant turmoil during tax season, with rapid leadership changes, tens of thousands of workers preparing for layoffs and retirements, and President Donald Trump intervening in decisions about nonprofits' tax-exempt status.
The agency has shuffled through three acting directors in a week, and the upheaval is likely to dampen employee morale and delay taxpayer services. The IRS has lost decades of institutional knowledge from nonpartisan career civil servants who have left over policy disagreements and layoffs.
Concerns are growing that Trump will weaponize the IRS against his enemies and reward his friends, with Democratic Party institutions like ActBlue and Indivisible preparing for possible federal investigations. Trump has mentioned targeting the tax-exempt status of Harvard University and environmental groups, which legal experts argue is unlawful.
Additionally, the IRS is engaging with the Department of Homeland Security to enforce a new data-sharing agreement, allowing ICE to cross-verify immigrants' tax records, which is being litigated in federal court. The turmoil at the IRS is indicative of broader challenges in improving technology and sharing information within the agency.
Economic News/Policy:
April 29: Gov. Abbott signs bill creating a Texas regulation-cutting agency inspired by Elon's DOGE
Governor Greg Abbott signed a bill creating a Texas version of the Department of Government Efficiency (DOGE), inspired by President Donald Trump's federal initiative implemented by Elon Musk.
The primary focus of this new agency will be to reduce regulations on Texas businesses, aiming to make the government more efficient and less costly.
Abbott emphasized the need to accelerate the process of cutting regulations, noting that Texas has the fifth highest regulatory burden in the U.S., which he finds unacceptable.
The bill, led by Sen. Phil King and Rep. Giovanni Capriglione, received bipartisan support and aims to address growing concerns among CEOs about the regulatory environment in Texas.
April 28: Trump threatens to veto Senate resolution blocking tariffs
President Donald Trump has threatened to veto a Senate resolution aimed at blocking his imposition of tariffs on various countries. The resolution, introduced by Sen. Ron Wyden, seeks to reverse Trump's 10 percent tariffs on all imported goods and prevent additional tariffs up to 49 percent.
The Office of Management and Budget stated that the resolution would undermine efforts to address threats to national security and economic stability posed by the trade deficit.
A Senate vote on the resolution is expected by the end of the week. Lawmakers from both parties have shown support for limiting the president's trade authority due to rising recession fears.
Trump imposed sweeping tariffs on April 2, paused them for 90 days on April 9, and raised tariffs on China to 145 percent. Administration officials are in talks with trading partners to reach deals before the 90-day pause expires, but no deals have been finalized.
April 28: Republican proposal to abolish PCAOB sparks debate
Republican lawmakers are considering dismantling the Public Company Accounting Oversight Board (PCAOB), the independent audit regulator established after the Enron scandal, as part of a broader reform package supporting President Donald Trump's deregulatory agenda.
The proposal, under consideration by the House Committee on Financial Services, would eliminate the levy on listed companies and broker-dealers that funds the PCAOB, transferring its responsibilities to the Securities and Exchange Commission (SEC).
The PCAOB, created in 2001, oversees audit standards and conducts regular inspections of firms auditing US public companies. The move to abolish the PCAOB is expected to face opposition from Democrats and limited support from audit firms. The Center for Audit Quality (CAQ) has advocated for the agency to be more responsive but has not endorsed its elimination.
Critics argue that dismantling the PCAOB could disrupt the audit-firm inspection regime. The proposed legislation also includes measures to eliminate unallocated funds from a $1 billion green retrofitting program and reduce the budget of the Consumer Financial Protection Bureau. The plan faces procedural challenges and will be reviewed by the House Committee on Financial Services in the coming days.
April 23: Twelve states sue the Trump administration over ‘tax hikes’ through tariffs
Twelve states have sued the Trump administration for "illegally imposing" tax hikes on Americans through tariffs.
The lawsuit argues that President Trump does not have the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), which is intended for responding to unusual and extraordinary threats. The states claim that Congress never intended IEEPA to be used for tariffs.
The lawsuit, filed by the attorneys general of New York, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, Oregon, and Vermont, seeks a court order to halt the tariffs and argues that they will lead to more inflation, unemployment, and economic damage.
The Trump administration has defended its actions, stating that the tariffs are necessary to confront national emergencies such as illegal migration and the US goods trade deficit. This lawsuit joins other legal actions against the administration's tariffs, including those filed by small businesses and civil rights groups.
Energy and Environmental Policy/News:
April 29: Advocates mobilize against Republican plans to tax EVs
Electric vehicle lobbyists are urging House Republicans not to tax EVs and hybrid cars to fund their ambitious tax, defense, immigration, and energy package.
The House Transportation and Infrastructure Committee's budget reconciliation legislation, up for markup on Wednesday, includes new fees on EVs to feed the Highway Trust Fund.
The Zero Emission Transportation Association (ZETA) argues that the surface transportation reauthorization process is the appropriate vehicle to address the Highway Trust Fund and suggests a voluntary "vehicle miles traveled" structure for all drivers.
Republicans are looking to scrap incentives favoring EVs, with proposals like the "Fair SHARE Act" imposing a one-time tax on EVs. Critics argue that adjusting the gas tax for inflation is a better solution to the revenue problem than taxing EV drivers alone. The markup is scheduled for April 30.
April 25: Renewable energy advocates see threats from Texas legislation
The Texas Legislature is considering bills that would increase requirements for renewable energy facility siting and generation reliability, raising concerns from the sector about reduced deployment during a time of increasing energy demand.
SB 819 would create a siting regime for new or expanded solar and wind projects, requiring developers to apply for and receive a permit before interconnection to the ERCOT transmission grid. The Solar Energy Industries Association (SEIA) argues that the bill adds onerous requirements to new solar projects, risking grid reliability, raising utility bills, and infringing on property rights.
Conversely, Stewards of Texas, a policy group lobbying for the bill, claims it will ensure responsible siting of wind and solar projects while safeguarding landowner rights and natural resources.
Additionally, the legislature is considering SB 715 and HB 3356, which would retroactively apply reliability standards to all generators, a move critics argue would be expensive and potentially illegal. The Texas Public Policy Foundation supports the bills, stating that uniform standards are essential to ensure fairness among generators.
Technology:
April 28: White House seeks input to revise national AI research and development plan
The Office of Science and Technology Policy is seeking public input to revise the national plan for artificial intelligence (AI) research and development, following a Biden administration update.
The request for information asks for comments on how the 2023 update to the National AI Research and Development Strategic Plan could be rewritten to maintain the country's competitiveness in AI technology.
The first national AI R&D plan was issued in 2016 by the Trump administration and has been updated twice since, with each update expanding the strategic areas. The current Trump administration aims to undo and revise the previous approach to AI, considering responses from a previous public input period.
The comment period will last until May 29. The announcement comes amid news that the National Science Foundation is terminating research grants that don't align with its priorities, including awards for AI research. Michael Kratsios, OSTP director, emphasized the need for creative use of public research and development money to boost AI research through novel funding mechanisms.
April 24: United Arab Emirates first nation to use AI to write laws
The United Arab Emirates (UAE) has become the first nation to rely on artificial intelligence (AI) to write new federal and local laws, review and amend existing legislation, and other procedures.
The UAE government approved a new cabinet unit, the Regulatory Intelligence Office, to streamline the legislative process by designing, implementing, and coordinating the AI regulatory system in partnership with federal and local officials.
Sheikh Mohammed bin Rashid al-Maktoum, Dubai ruler and UAE prime minister, stated that the AI-powered legislative system will make law creation faster and more precise. The UAE plans to use AI to track the impact of its laws on the population and economy, creating a database of federal and local laws.
By 2030, officials estimate AI will have a global market value of $15.7 trillion, reducing government costs by 50% and boosting the UAE's GDP by 35%. AI is expected to speed up lawmaking by 70% and regularly suggest updates to current legislation.
April 23: California Bar discloses AI was used to develop some questions in problem-plagued February exam
The State Bar of California has revealed that artificial intelligence (AI) was used to develop some multiple-choice questions in the February 2025 bar exam, which faced numerous issues.
The exam led to complaints from test-takers who experienced platform crashes, screen lags, and other technical problems. The Bar will ask the California Supreme Court to adjust test scores.
Out of 171 scored multiple-choice questions, 23 were developed with AI by ACS Ventures. The disclosure has sparked criticism, with experts expressing disbelief that non-lawyers using AI drafted the questions.
Despite the controversy, the Bar maintains confidence in the validity of the questions to assess legal competence. The use of AI in developing bar exam questions is unprecedented, but experts predict its continued growth in the legal field.
For Fun:
April 29: Chimpanzees Filmed Getting Drunk Together in World First
Researchers from the University of Exeter, in collaboration with other institutions, have captured footage of wild chimpanzees in Guinea-Bissau eating naturally fermented, alcoholic fruit and sharing it as a social activity.
The chimps were filmed munching on fermented African breadfruit, which provides a light buzz, and sharing it with each other on 10 separate occasions without any fighting. This behavior, seen across sexes and age groups, suggests that chimps are achieving a level of sociability that mirrors human evolution.
The findings, published in the journal Current Biology, indicate that sharing fermented fruit could be an ancient version of forming social bonds and keeping them strong, releasing feel-good chemicals like dopamine and endorphins. This behavior may suggest that the love of a good buzz goes back millions of years, long before Homo sapiens existed.