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TaxBuzz Top 5 - House GOP Advances Budget Blueprint, DeSantis Endorses Abolition of Property Taxes & More

by
Rebekah Barton
on
2/14/2025
TaxBuzz Top 5 - House GOP Advances Budget Blueprint, DeSantis Endorses Abolition of Property Taxes & 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. House Budget Committee Advances $4.5 Trillion Tax and Spending Blueprint Amid Internal GOP Challenges

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Credit: Andrey Denisyuk/Getty Images

The Republican-controlled House Budget Committee has advanced a 45-page budget resolution outlining a sweeping plan to extend President Trump’s tax cuts and implement major spending reforms. Per NBC, the resolution, passed along party lines by a 21-16 vote, calls for up to $4.5 trillion in new deficits driven by tax cuts and mandates $1.5 trillion in spending cuts over the next decade. A key condition requires that either $2 trillion in cuts to mandatory spending programs—such as Medicare, Medicaid, and SNAP—be achieved or the tax breaks be proportionately reduced.

The blueprint sets the stage for an ambitious legislative package covering Trump’s priorities on taxes, immigration, and defense. House Speaker Mike Johnson and Budget Committee Chair Jodey Arrington have stressed that the resolution provides the fiscal framework for what they call “one of the most consequential pieces of legislation in modern history.” However, the plan faces significant challenges, including a razor-thin GOP majority in the full House and potential intra-party disagreements. Moderate Republicans have expressed concerns about deep cuts to social services, while hard-line members favor more aggressive tax reductions.

According to the AP, further negotiations are expected, as the resolution is only the first step. Lawmakers must now work to reconcile differences between House and Senate proposals and address contentious issues such as the state and local tax (SALT) deduction, corporate tax rates, and cuts to Medicaid before a final bill can be enacted.

2. Massachusetts Issues $92.8 Million in Film Tax Credits, Raising Questions on Economic Impact

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Credit: Alexander Ford/Getty Images

Preliminary data from the Massachusetts Department of Revenue shows the state issued $92.8 million in film tax credits in 2023—the largest annual subsidy for the film industry since before the pandemic. WBUR reports that the film tax credit program, designed to attract movie, television, and commercial productions, offers credits equal to 25% of production and payroll costs. These credits can be sold to banks, insurance companies, and other entities to offset tax liabilities.

The program has generated controversy. Supporters point to its role in stimulating the local film industry, creating jobs, and contributing to economic activity. Notable productions, such as Sony's Marvel film, “Madame Web,” and the television miniseries “Dexter: New Blood,” together accounted for over half of the credits issued, with amounts of roughly $23.7 million and $23.0 million respectively. However, critics argue that while the program brings in film work, it is an expensive subsidy that costs taxpayers more than the economic boost it provides. A state report on the program’s first 11 years estimated that although it added $615.5 million to the economy and created 6,341 jobs, it ultimately cost taxpayers $652.8 million.

Moreover, industry workers note that post-pandemic production has slowed due to factors such as strikes and global competition. As Massachusetts debates the long-term viability of the subsidy, questions persist over whether the tax incentives will remain competitive in a rapidly evolving global film market.

3. DeSantis Endorses Idea to Abolish Property Taxes in Florida, Outlines Potential Path

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Credit: ntzolov/Getty Images

Florida Governor Ron DeSantis has publicly endorsed a proposal to abolish property taxes in the state, detailing how such a drastic shift might be achieved. DeSantis argues that property taxes burden Florida homeowners and proposes that the state could instead rely on alternative revenue streams. His plan suggests that revenue previously generated from property taxes could be replaced by adjustments in other areas, such as increasing sales taxes or implementing new fees on specific services.

DeSantis noted that Florida’s fiscal landscape, already characterized by the absence of a state income tax, might be uniquely positioned for such a change. He stressed that a carefully planned transition away from property taxes could ease financial pressure on residents while still providing local governments with the funds necessary for public services like education, infrastructure, and public safety.

However, policy analysts caution that shifting the revenue burden may not be straightforward. Local governments depend heavily on property taxes to support essential services, and any significant tax restructuring would require complex negotiations with municipalities. Some economists warn that while the idea may appeal to voters tired of rising property taxes, the alternative revenue measures could have broader economic repercussions, potentially impacting consumer spending and business costs.

DeSantis’s proposal, while still in the conceptual stage, has already ignited a spirited debate over the feasibility and potential economic impact of eliminating property taxes in the Sunshine State.

4. Trump’s Social Security Tax Elimination Plan Faces Tough Hurdles

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Credit: Anna Moneymaker/Getty Images

President Donald Trump’s proposal to eliminate taxes on Social Security benefits is encountering significant financial and political obstacles, according to a recent Newsweek report. Trump has long touted the idea as part of a broader tax agenda aimed at providing relief for seniors, arguing that many retirees struggle with the burden of paying taxes on their benefits. However, new fiscal analyses indicate that scrapping these taxes could cost the federal government billions in revenue, potentially worsening the national deficit.

Experts warn that eliminating the tax on Social Security—currently affecting a substantial portion of benefit recipients—would not only reduce a critical revenue stream but might also disproportionately benefit higher-income retirees. Lawmakers opposing the change argue that Social Security taxes help fund essential services for millions of elderly Americans and that any significant reduction in revenue could threaten the program’s long-term viability.

Political critics note that while Trump’s proposal may appeal to his base as a promise of immediate relief, the long-term implications for fiscal responsibility have raised serious concerns. As discussions intensify ahead of the upcoming election, both fiscal experts and congressional leaders remain skeptical about whether eliminating these taxes is a viable component of any comprehensive tax reform plan. The debate over this measure will undoubtedly continue throughout this Trump administration.

5. Senators Cramer and Thune Introduce Death Tax Repeal Act

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Credit: Fotografie Link/Getty Images

U.S. Senator Kevin Cramer (R-ND) joined U.S. Senate Majority Leader John Thune (R-SD) have introduced the Death Tax Repeal Act, a bill aimed at eliminating the federal estate tax—often dubbed the "death tax." In a joint press release, the senators argued that the current tax on wealth transfers at death penalizes success and hampers family wealth preservation. They contend that repealing the tax would simplify estate planning, encourage savings and investment, and ultimately foster economic growth.

The proposed legislation would remove the tax on estates above the current exemption threshold, allowing families to pass on their assets without facing punitive taxation. Proponents claim that this repeal would create a more favorable environment for entrepreneurship and long-term financial planning by eliminating what they see as an outdated and burdensome tax.

Critics, however, warn that the repeal would primarily benefit the very wealthy and could lead to a significant loss of federal revenue—revenue that currently supports essential government programs. They argue that the estate tax is an important tool for addressing wealth inequality and ensuring fiscal fairness.

As the bill moves to the Senate committee for further review, its fate will depend on whether lawmakers can balance the promise of economic growth with the need for responsible fiscal policy. The debate over the estate tax remains a polarizing issue in Washington, reflecting broader disagreements on tax reform and wealth distribution.

Which headline this week most interests you?

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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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