Democratic Senators Propose Competing Tax Plans Targeting Middle-Class ReliefDemocratic Sens. Chris Van Hollen of Maryland and Cory Booker of New Jersey have introduced separate tax proposals that would reduce or eliminate federal income taxes for many lower and middle income Americans while increasing taxes on higher earners. Van Hollen’s bill, called the Working Americans’ Tax Cut Act, would create what his office describes as [...]
Washington Approves First Income Tax on Million-Dollar EarnersWashington lawmakers approved legislation Thursday imposing a 9.9 percent tax on annual income exceeding $1 million, making the state one of the first to adopt a personal income tax after decades of failed attempts. Democratic Governor Bob Ferguson said he plans to sign the measure, which takes effect January 1, 2028, with first payments due [...]
Court Ruling Opens Door to COVID-Era Tax Penalty RefundsA federal court decision issued in November 2025 could affect IRS penalties and interest assessed during the COVID-19 emergency period, potentially allowing some taxpayers to seek refunds. In Kwong v. United States, the U.S. Court of Federal Claims ruled that Section 7508A(d) suspended certain federal tax deadlines nationwide from January 20, 2020, through July 10, 2023. [...]
Democratic Senators Propose Eliminating Income Taxes on Earnings up to $92,000Two Democratic senators introduced separate tax bills Thursday that would reduce or eliminate federal income taxes on a portion of earnings for many households. Sen. Chris Van Hollen of Maryland proposed a bill that would create a cost-of-living exemption of up to $46,000 for single filers, $64,400 for heads of household, and $92,000 for married couples [...]
Florida Blocks $3.5 Billion Corporate Tax Cut Amid Budget ConcernsFlorida lawmakers sent House Bill 7031 to Gov. Ron DeSantis after approving legislation that updates the state’s tax code but does not adopt certain federal corporate tax changes. The bill adopts the Internal Revenue Code as of January 1, 2026. It does not conform to tax provisions in the federal One Big Beautiful Bill Act that [...]
Georgia Legislature Advances Medical Cannabis Expansion, Criminal Record ReformsThe Georgia Legislature advanced several bills Thursday on medical cannabis, criminal records, healthcare workforce recovery, and tax policy with about three weeks left in the 2026 session. Senate Bill 220, which would expand Georgia’s medical cannabis program, passed the House 138 to 21. The bill would rename the state’s low-THC oil program as medical cannabis, add [...]
Virginia Reverts to Static Tax Conformity, Decouples from Federal OBBBA ProvisionsGovernor Abigail Spanberger signed House Bill 29 on February 20, establishing Virginia’s conformity to the Internal Revenue Code as of December 31, 2025. The legislation reverses the state’s three-year experiment with rolling conformity and strategically decouples from specific provisions of the One Big Beautiful Bill Act. Virginia becomes the latest state to respond to OBBBA’s passage [...]
South Carolina House Passes $15.4 Billion Budget, Income Tax OverhaulThe South Carolina House of Representatives approved a $15.4 billion state spending plan early Wednesday morning after more than 16 hours of debate over two days. The fiscal year 2026-27 budget passed 101-18. Most opposition came from House Freedom Caucus members. The House also approved Senate amendments to lower the state’s top income tax rate from [...]
Senator Proposes Making First $75,000 Tax-Free for FamiliesSen. Cory Booker introduced legislation Monday that would eliminate federal income tax on the first $75,000 earned by married couples filing jointly, a proposal that would represent one of the most significant expansions of tax-free income in decades. The bill includes proportional thresholds for single filers and heads of household, along with more than doubling [...]