New IRS Commissioner, DOGE Cuts, and the Cryptocurrency Regulation Bill
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Tax Policy/News:
June 17: What’s new in the Senate version of Trump’s tax bill
Senate Republicans have introduced a revised version of President Donald Trump’s sweeping tax legislation, diverging from the House-passed bill in several key areas to address concerns over foreign investment, state tax deductions, and Medicaid spending.
The Senate version delays and softens the controversial Section 899 “revenge” tax on foreign investors, capping it at 15% by 2031 instead of the House’s 20% by 2029. It also proposes a stricter $10,000 cap on state and local tax (SALT) deductions, compared to the House’s $40,000 limit, a move likely to face resistance from lawmakers in high-tax states. On Medicaid, the Senate bill imposes deeper cuts and adds new work requirements for parents with children aged 15 and older, unlike the House version which exempted all parents from such mandates.
The Senate also scales back the House’s proposed tax on private university endowments, capping it at 8% instead of 21%, and omits a tax on private foundations. Additional changes include limiting tax exemptions on tips and overtime to $25,000 and $12,500 respectively, with phaseouts for higher earners, and expanding the senior bonus deduction from $4,000 to $6,000.
The Senate bill would also eliminate the $7,500 electric vehicle credit sooner than the House version and restrict car loan interest deductions to new U.S.-built vehicles. Notably, it makes permanent several business tax breaks set to expire in 2029, including the research and development deduction, and includes provisions to eliminate taxes and regulations on many firearms and silencers, appealing to gun-rights advocates.
June 12: Ex-congressman Billy Long confirmed as commissioner of the IRS, an agency he once sought to abolish
The Senate confirmed former Rep. Billy Long of Missouri as commissioner of the Internal Revenue Service (IRS) in a 53–44 vote, despite concerns over his past efforts to abolish the agency and his involvement with a firm linked to fraudulent pandemic-era tax credits.
Long, who served in Congress from 2011 to 2023 and has no background in tax administration, previously sponsored legislation to eliminate the IRS. His confirmation comes at a time of significant upheaval within the agency, which has faced mass staff departures, leadership turnover, and legal challenges related to data handling under the Department of Government Efficiency.
Democrats raised alarms about Long’s ties to firms accused of selling fake tax credits and questioned the adequacy of his FBI background check. Treasury Deputy Secretary Michael Faulkender expressed confidence in Long’s leadership, citing the need for transformation at the IRS.
Long’s stance on the Direct File program, a free tax filing system developed under the Biden administration, remains uncertain, though he indicated it would be a priority for review. His appointment follows a pattern of Trump-era nominees, such as Linda McMahon and Rick Perry, who have advocated dismantling the very agencies they were chosen to lead.
June 12: GOP tax bill would cost poor Americans $1,600 a year and boost highest earners by $12,000, CBO says
A new analysis by the Congressional Budget Office (CBO) reveals that the Republican tax bill passed by the House would reduce annual income for the poorest Americans by approximately $1,600 while increasing the wealthiest households’ income by an average of $12,000. Middle-income earners would see more modest gains of $500 to $1,000.
The disparities stem from proposed cuts to social safety net programs such as Medicaid and the Supplemental Nutrition and Assistance Program (SNAP), along with expanded work requirements for benefits. The bill, part of President Donald Trump’s “One Big Beautiful Bill Act,” also includes temporary tax breaks for tips, overtime, car loan interest, and a $4,000 increase in the standard deduction for seniors.
Treasury Secretary Scott Bessent and other Republicans have dismissed the CBO’s findings, arguing the bill is essential to avoid economic crisis. The administration claims the bill’s cost would be offset by revenue from Trump’s tariff plan, which the CBO previously estimated would reduce deficits by $2.8 trillion over a decade but also shrink the economy and raise inflation.
Rep. Brendan Boyle, who requested the analysis, criticized the bill as a massive wealth transfer from working families to the ultra-rich, calling it “shameful” and historically significant in its impact. The CBO’s analysis did not factor in the potential effects of the tariffs, focusing solely on the tax provisions of the legislation.
Economic News/Policy:
June 12: House GOP approves first batch of DOGE cuts
The House of Representatives narrowly passed a $9.4 billion rescissions package on June 12, marking the first formal adoption of spending cuts recommended by the Department of Government Efficiency (DOGE).
The 214–212 vote approved reductions to the U.S. Agency for International Development (USAID) and the Corporation for Public Broadcasting, which supports NPR and PBS. Speaker Mike Johnson praised the move as a step toward fiscal responsibility and a response to the growing $36 trillion federal deficit. Despite internal GOP divisions—particularly over cuts to public broadcasting and the President’s Emergency Plan for AIDS Relief—only four Republicans joined Democrats in opposing the bill.
The legislation’s future in the Senate remains uncertain, with some Republicans expressing concern over its provisions. The bill, which requires only a simple majority in the Senate under the Impoundment Control Act, is expected to be taken up in July after work concludes on the broader reconciliation bill. The package also proposes eliminating funding for several United Nations programs and rescinding $535 million in public broadcasting funds for fiscal years 2026 and 2027.
Rep. Mark Amodei, co-chair of the Public Broadcasting Caucus, has urged reconsideration of the cuts, citing their potential impact on rural stations. Meanwhile, Paula Kerger, CEO of PBS, warned the cuts could devastate local programming and emergency services. The vote comes amid a thaw in tensions between Donald Trump and Elon Musk, the architect of DOGE, following a public falling out over the bill.
June 10: Trump tariffs may remain in effect while appeals proceed, federal appeals court rules
A federal appeals court has ruled that former President Donald Trump’s sweeping “Liberation Day” tariffs can remain in effect while legal challenges proceed, despite a lower court ruling that he exceeded his authority by imposing them.
The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., emphasized the “exceptional importance” of the case and scheduled a rare full 11-judge hearing for July 31. The court has not yet decided whether the tariffs are lawful under the International Emergency Economic Powers Act (IEEPA), which Trump invoked to justify the measures.
These tariffs, including those on Canada, China, and Mexico, have disrupted markets and supply chains, though they do not affect tariffs imposed under traditional legal authorities like those on steel and aluminum. A May 28 ruling by the U.S. Court of International Trade found that only Congress has the constitutional authority to levy tariffs, challenging Trump’s use of IEEPA, a law historically used for sanctions, not trade policy.
Trump has argued the tariffs address issues like fentanyl trafficking and the U.S. trade deficit, claims disputed by the affected countries and challenged in multiple lawsuits, including by small businesses and 12 states. No court has yet upheld Trump’s broad interpretation of emergency tariff powers.
Energy and Environmental Policy/News:
June 13: Small business owners from rural America urge Congress to keep clean energy tax credits
Small business owners and community leaders from rural states including Alaska, Colorado, Montana, and others visited Capitol Hill this week to urge lawmakers to preserve clean energy tax credits threatened by the Republican “One Big Beautiful Bill” now under Senate consideration.
These credits, originally expanded under the 2022 Inflation Reduction Act, have driven significant investment in renewable energy and job creation, particularly in regions that supported Donald Trump’s reelection. Business owners like Chase Christie of Alaska Solar LLC and Ralph Waters of SBS Solar in Montana emphasized that the credits are vital for sustaining their operations and workforce, especially in remote and economically vulnerable areas.
The House-passed bill would accelerate the expiration of key credits, including the Clean Electricity Investment Tax Credit and the Energy Efficient Home Improvement Tax Credit, while also eliminating credit transferability and imposing new restrictions on foreign-made components. Critics argue these changes would make the credits unworkable and lead to job losses.
Supporters of the credits, such as Logan Smith of Montana’s Human Resource Development Council, highlighted their importance for energy security and affordability in rural communities. While some Senate Republicans, including Lisa Murkowski and Dan Sullivan, have engaged with constituents on the issue, the final language of the Senate bill remains in flux. The proposed cuts are estimated to save $249 billion over the next decade, but opponents warn of the economic and social costs to rural America if the credits are eliminated.
June 12: GOP lawmakers reiterate asks for clean energy credit tweaks in reconciliation bill
A group of 13 House Republicans, led by Rep. Jen Kiggans of Virginia, urged the Senate to revise provisions in the budget reconciliation bill that affect clean energy tax credits, arguing that the current House-passed version imposes overly restrictive timelines and standards.
In a letter sent June 6, the lawmakers expressed concern that the bill’s accelerated phaseout schedule and a 60-day construction start requirement could jeopardize over $14 billion in clean energy projects already canceled this year, and potentially lead to further cancellations. They advocated replacing the “placed in service” standard with a more flexible “commence construction” requirement, citing permitting delays and other external factors that complicate project timelines.
The group also criticized the bill’s “foreign entity of concern” provision as overly prescriptive and called for maintaining tax credit transferability throughout the credits’ lifetime. While they supported the bill’s preservation of some clean energy incentives, the lawmakers warned that the current approach could disrupt ongoing development, discourage investment, and delay or cancel infrastructure projects.
The letter emphasized the need for a modernized energy tax code that balances fiscal responsibility with business certainty. Signatories included Reps. Andrew Garbarino, Mike Lawler, Nick LaLota, Mark Amodei, Don Bacon, Brian Fitzpatrick, Rob Bresnahan, Juan Ciscomani, Gabe Evans, Young Kim, David Valadao, and Thomas Kean Jr..
Technology:
June 17: Senate passes landmark crypto regulation bill on a bipartisan vote, sending it to the House
In a historic move, the U.S. Senate passed the GENIUS Act on June 17 by a 68–30 vote, marking the first time the chamber has approved major legislation to regulate digital assets. Authored by Sen. Bill Hagerty, the bill establishes a regulatory framework for stablecoins and aims to bolster U.S. leadership in the cryptocurrency space.
The bipartisan support included 18 Democrats, with only two Republicans—Rand Paul and Josh Hawley—voting against it. The legislation includes consumer protection measures, restrictions on tech companies issuing stablecoins, and ethics standards for government employees. It also prohibits members of Congress and senior executive officials from issuing stablecoins while in office.
The bill’s passage follows a compromise negotiated by a bipartisan group including Sens. Cynthia Lummis, Mark Warner, Kirsten Gillibrand, Angela Alsobrooks, and Ruben Gallego, which addressed earlier Democratic concerns over national security and anti-money laundering provisions.
However, critics like Sen. Elizabeth Warren argue the bill still lacks sufficient safeguards to prevent illicit use of stablecoins and fails to curb potential conflicts of interest involving Donald Trump and his family’s crypto ventures. The bill now moves to the House, where lawmakers are working on a parallel bipartisan effort to regulate digital assets.
June 13: New York passes a bill to prevent AI-fueled disasters
New York lawmakers have passed the RAISE Act, a landmark bill aimed at preventing catastrophic outcomes from advanced artificial intelligence systems developed by companies like OpenAI, Google, and Anthropic.
The bill mandates that AI labs whose models are trained with over $100 million in computing resources and are accessible to New York residents must publish detailed safety and security reports and disclose any safety incidents, such as misuse or theft of AI models. Violations could result in civil penalties of up to $30 million.
Co-sponsored by Senator Andrew Gounardes and Assemblymember Alex Bores, the legislation is designed to avoid stifling innovation among startups and academic researchers, a key criticism of California’s vetoed SB 1047. The bill has drawn support from AI safety advocates like Geoffrey Hinton and Yoshua Bengio, but has faced pushback from Silicon Valley figures including Anjney Midha of Andreessen Horowitz, who argue it could hinder U.S. competitiveness.
While some critics, including Jack Clark of Anthropic, have raised concerns about the bill’s breadth, Gounardes emphasized that the law targets only the largest AI developers. The bill now awaits action from Governor Kathy Hochul, who can sign it into law, amend it, or veto it.
For Fun:
June 11: World first: brain implant lets man speak with expression — and sing
A groundbreaking brain–computer interface (BCI) has enabled a man with a severe speech disability to speak expressively and even sing by translating his neural activity into speech in real time.
Developed by researchers including Maitreyee Wairagkar at the University of California, Davis, the system uses artificial intelligence to decode electrical signals from 256 electrodes implanted in the participant’s motor cortex, producing speech within just 10 milliseconds of the brain’s signal. Unlike earlier BCIs, this device captures not only the intended words but also natural speech features such as intonation, pitch, and emphasis, allowing the user to convey emotion and nuance.
The participant, who lost his ability to speak clearly due to amyotrophic lateral sclerosis, was able to respond to open-ended questions, use interjections, and even vocalize made-up words, demonstrating the system’s flexibility beyond a fixed vocabulary. The synthetic voice was personalized using recordings of the man’s voice from before his illness, which he said made him feel like it was his “real voice.”
The BCI also distinguished between questions and statements and adjusted speech intonation accordingly. Experts say this innovation marks a paradigm shift in assistive communication technology, offering a more natural and expressive voice for users and paving the way for broader adoption in daily life.
June 11: How the brain separates real images from those it imagines
Neuroscientists have identified two key brain regions that help distinguish between real and imagined images, shedding light on how the brain maintains a boundary between perception and imagination. In a study led by Nadine Dijkstra at University College London, researchers used functional magnetic resonance imaging (fMRI) to observe participants as they viewed or imagined black and white stripes over a static background.
The study found that the fusiform gyrus, a region known for processing high-level visual information, correlated strongly with the vividness of the perceived or imagined stripes, suggesting it tracks a “reality signal” that influences whether an image is judged as real. Meanwhile, the anterior insula showed activity only when participants believed the image was real, indicating it may act as a gatekeeper in confirming visual reality.
The findings, published in Neuron, offer a new framework for understanding how the brain separates internal imagery from external stimuli, a process that can malfunction in conditions like psychosis and schizophrenia. Experts such as Thomas Naselaris of the University of Minnesota praised the study as a significant step toward modeling the interaction between imagination and vision, though he noted the need for further research using more complex images to better simulate real-world visual processing.