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TaxBuzz Top 5 - DeSantis Believes There Will Be Mass Exodus from Cuba, NJ Considers Taxing "Illegal" Private Prisons & More

by
Rebekah Barton
on
3/20/2026
TaxBuzz Top 5 - DeSantis Believes There Will Be Mass Exodus from Cuba, NJ Considers Taxing "Illegal" Private Prisons & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. DeSantis Rejects Gas Tax Holiday As Iran War Drives Prices, Warns Of Potential Cuba ‘Exodus’

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Credit: Anna Moneymaker/Getty Images

Florida Gov. Ron DeSantis is pushing back on calls to suspend the state’s gas tax despite rising fuel prices tied to the Iran conflict, arguing there is no “simple fix” at the state level and placing responsibility on federal energy policy. Lawmakers had urged a temporary gas tax holiday similar to a move the state made in 2022, but DeSantis signaled he does not support repeating that approach.

Instead, DeSantis framed the issue as part of a broader geopolitical and economic challenge, warning that global instability, including U.S. actions in the Middle East, could continue to drive energy costs higher. The debate highlights how state tax policy is increasingly intersecting with international events impacting oil markets and consumer prices.

He also raised concerns about a potential mass migration from Cuba, suggesting worsening conditions on the island — exacerbated by fuel shortages and U.S. policy — could trigger an “exodus” that Florida would need to manage. The warning ties tax and energy policy directly to immigration pressures in the state.

Democrats argue suspending the gas tax would provide immediate relief to drivers facing higher costs at the pump, while critics of DeSantis say rejecting the measure leaves consumers absorbing the full impact of global price spikes. Supporters of the governor, however, say short-term tax cuts do little to address underlying supply issues.

The standoff underscores a broader national tension as policymakers weigh whether tax relief, such as gas tax holidays, is an effective response to inflation driven largely by global energy markets rather than domestic policy alone.

2. Chicago Raises Hotel Tax to Nearly 20% as City Targets Major Events and Tourism Growth

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Credit: Kenny McCartney/Getty Images

Chicago officials have approved a plan to raise the city’s hotel tax to about 19%, one of the highest combined rates in the country, as part of a broader push to boost tourism marketing and attract large-scale events. The increase applies to larger downtown hotels that opt into a newly created Tourism Improvement District aimed at strengthening the city’s competitive position.

The tax hike is designed to fund Choose Chicago, the city’s tourism arm, helping pay for marketing campaigns and bids for major conventions and events. Officials are already eyeing opportunities like the Democratic National Convention and other large gatherings that can drive hotel stays and visitor spending.

Supporters argue the move is a strategic investment, allowing Chicago to compete with other major cities by reinvesting visitor-generated tax revenue into tourism growth and economic development. City leaders say attracting conventions and events delivers long-term returns through increased spending, jobs and local tax collections.

Critics, however, warn that pushing hotel taxes close to 20% could make travel to Chicago significantly more expensive, potentially discouraging tourists and families from booking stays. Some observers note that rising “tourism taxes” across cities risk pricing out visitors, especially as travel costs remain elevated.

The change is indicative of a wider trend of cities relying on targeted taxes, like hotel and tourism levies, to fund economic initiatives without raising general taxes on residents, even as debates continue over how high those visitor taxes can go before impacting demand.

3. New Jersey Lawmakers Push New Taxes on "Illegal" Private Prisons to Offset Social Costs

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Credit: fhm/Getty Images

New Jersey lawmakers are advancing a proposal that would impose new taxes and fees on private prison operators, including levies tied to detainee populations, contract values and corporate income, as part of a broader effort to hold the industry financially accountable. The bill is designed to offset what sponsors describe as the social and economic costs of incarceration, particularly in facilities tied to federal immigration detention.

The legislation includes a proposed corporate surtax on private prison companies — called "plainly illegal" by opponents —and additional per-detainee or contract-based fees, marking one of the more aggressive attempts by a state to directly tax the private detention industry. Some versions of the proposal also include steep taxes on gross receipts tied to facility operations.

Supporters argue the measure would generate new revenue while discouraging reliance on private detention facilities, aligning with broader efforts in New Jersey to limit or regulate immigration-related incarceration. Lawmakers say the goal is both fiscal and policy-driven, shifting costs back onto companies that profit from detention.

Opponents, including industry advocates and some policymakers, warn the taxes could face legal challenges and may ultimately increase costs passed along through federal contracts or reduce private investment in the state. Critics also argue the approach could complicate existing agreements tied to federal detention programs.

The proposal reflects a broader national trend of states rethinking tax policy around specific industries, particularly those tied to social or political priorities, and using targeted taxes not just for revenue, but as a tool to influence behavior and public policy outcomes.

4. Rising Gas Prices From Iran War Could Wipe Out Americans’ Bigger Tax Refunds

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Credit: Grace Cary/Getty Images

Surging gas prices tied to the ongoing Iran conflict are threatening to cancel out the larger tax refunds many Americans are receiving this year under recent federal tax changes. A new analysis from the Stanford Institute for Economic Policy Research estimates the average U.S. household could spend about $740 more on fuel in 2026, nearly matching the expected boost in refunds.

That increase comes as global oil prices spike due to disruptions in the Middle East, pushing U.S. gas prices sharply higher and adding new pressure on household budgets. Economists say energy costs act like a “hidden tax,” offsetting the financial relief that bigger refunds would otherwise provide.

While average refunds are up — reaching roughly $3,600 so far this season — analysts warn the gains may be short-lived if elevated fuel costs persist. The overall impact depends heavily on how long the conflict affects oil supply, particularly disruptions tied to the Strait of Hormuz.

Separate forecasts shared by CBS News suggest rising fuel costs could reduce household purchasing power by billions each month, outweighing the short-term boost from tax refunds and potentially slowing consumer spending.

The situation highlights how global events can directly impact U.S. taxpayers, with geopolitical shocks effectively reshaping the real value of tax policy and what Americans actually feel in their wallets.

5. Spain Slashes Fuel and Electricity Taxes as Iran War Drives Energy Costs Higher Across Europe

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Credit: Patrick Donovan/Getty Images

Spain is rolling out a sweeping tax relief package that includes cutting fuel VAT from 21% to 10% and eliminating certain electricity taxes as the Iran conflict sends energy prices soaring across Europe. The measures are aimed at providing immediate relief to households and businesses facing rising fuel and utility costs tied to global supply disruptions.

The plan also includes suspending hydrocarbon levies, which could lower gasoline and diesel prices by as much as €0.30 to €0.40 per liter, along with removing a 5% tax on electricity consumption. Officials say the goal is to blunt inflationary pressure as energy costs ripple through the broader economy.

Prime Minister Pedro Sánchez has framed the move as part of a broader economic response to the geopolitical shock, emphasizing Spain’s relatively strong position due to its investment in renewable energy. Still, policymakers acknowledge that even countries less reliant on imported fuel are feeling the strain of global price spikes.

Spain’s approach reflects a trend across Europe, where governments are increasingly turning to tax cuts and targeted relief to manage the economic fallout from the Iran war. Other countries, including Italy and Germany, are considering or implementing similar measures to stabilize energy costs and protect consumers.

The shift highlights how tax policy is being used as a frontline economic tool in response to geopolitical crises, with energy taxes, once a steady source of government revenue, now being reduced to cushion the immediate financial impact on households.

Which headline this week most interests you?

Feature Image Credit: Octavio Jones/Stringer/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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