The Tax the Grift Act imposes a 100 percent tax on any money received from a specific fund created by a civil lawsuit filed by the President against the Internal Revenue Service. This tax applies to all recipients of these payments and is treated as a standard income tax rather than a special exclusion. However, the bill also prevents these payments from being counted as taxable income, effectively nullifying the tax by allowing recipients to exclude the funds from their gross income. The law takes effect for any amounts received after the bill is enacted.
Clinical Trial Modernization Act This bill authorizes a grant program and provides certain exemptions to support the participation of individuals in clinical trials. Specifically, the bill authorizes a grant program to support outreach, education, and recruitment efforts for clinical trials that may benefit certain underrepresented populations or communities in need, such as rural or tribal areas. The bill also exempts from anti-kickback laws for federal health care programs (1) remuneration that is offered to cover participants' expenses to participate in clinical trials, (2) the provision of free digital health technologies to support participation of underrepresented populations in clinical trials, and (3) payment for participants' cost-sharing obligations in relation to clinical trials. Finally, the bill exempts up to $2,000 in remuneration that is received for participating in a clinical trial from income tax.
This bill, titled the "Millionaires Surtax Act," establishes a new 10% surcharge on high-income individuals. This additional tax applies to the portion of a taxpayer's "modified adjusted gross income" that exceeds $2,000,000 for married couples filing jointly, or $1,000,000 for single filers. The bill defines "modified adjusted gross income" with specific deductions and includes special rules for certain taxpayers, such as non-resident aliens and charitable trusts. If enacted, these changes would take effect for taxable years beginning after December 31, 2026.
The Poll Worker Tax Cut Act (H.R. 8342) proposes to reduce the federal income tax burden for individuals who serve as temporary poll workers during elections. It amends the Internal Revenue Code to exclude compensation received by poll workers from their gross income for federal income tax purposes. However, this exclusion would not apply to employment taxes, meaning poll worker compensation would still be subject to taxes like Social Security and Medicare. These changes would take effect for compensation received after December 31, 2025.
The Working Parents Tax Relief Act of 2026 proposes to increase the Earned Income Tax Credit (EITC) for eligible parents of young children. It raises the EITC credit percentage for families with one child under age four and provides similar increases for families with two or more children under age four, specifically for the youngest three children. The bill also increases the rate at which the credit phases out for these families, applying to the youngest three children under age four. Additionally, it creates a mechanism for taxpayers to elect to receive their EITC refunds in equal monthly payments. These provisions would take effect for taxable years beginning after December 31, 2025.
This bill, known as the GRATS Act, modifies federal tax law regarding certain types of trusts and wealth transfer strategies, primarily affecting individuals who use these tools for estate planning. It introduces new requirements for Grantor Retained Annuity Trusts (GRATs), mandating a minimum 15-year term, fixed payments that do not decrease, and a minimum value for the portion gifted to beneficiaries. The bill also changes how transactions between a grantor trust and its deemed owner are treated, making them taxable sales rather than being disregarded for income tax purposes. Additionally, it specifies that if an individual pays the income taxes for a non-revocable grantor trust they control and is not reimbursed by the trust, that payment will be considered a taxable gift to the trust's beneficiaries. These changes apply to trusts created or contributions made on or after the bill's enactment.
HR 8350, the "No Taxes on Utility Bills Act," amends the Internal Revenue Code to create a new federal income tax deduction. This bill allows taxpayers to deduct from their taxable income all taxes and state-mandated surcharges that appear on their gas or electric utility bills. This change directly affects individuals and businesses who pay these utility bills, potentially lowering their federal tax liability. The new deduction would apply to taxable years beginning after the bill becomes law.
The SEPTIC Act proposes to make financial assistance received by homeowners from state or local governments for certain wastewater management improvements tax-free. It would amend current tax law to exclude from taxable income any direct or indirect subsidy provided to a resident for the purchase or installation of wastewater management measures on their primary residence. These measures are defined as installations or modifications primarily designed to manage wastewater, such as septic tanks and cesspools. This change means homeowners would not have to pay federal income tax on such financial aid.
This bill, known as the No Tax on Drill Pay Act, would exclude certain military compensation from federal income tax. It directly affects members of the U.S. military who receive pay for inactive-duty training, which includes weekend drills and other training activities outside of regular duty. The legislation amends the Internal Revenue Code to add inactive-duty training compensation to the list of qualified military benefits that are not subject to taxation. This change applies to any compensation received after the bill becomes law, meaning it would affect future training pay rather than past earnings.
The Virtual Currency Tax Fairness Act exempts small transactions involving virtual currency from federal income tax. It directly affects individuals who buy, sell, or trade digital assets like cryptocurrencies. The bill creates a de minimis rule that excludes gains or losses under $200 from taxable income, provided the transaction does not involve cash or business/investment property. Transactions are aggregated, meaning multiple related sales count as one for the $200 threshold. The $200 limit will be adjusted for inflation starting in 2028, and the law applies to transactions occurring after December 31, 2026.
