The House Republicans just released a list of options they may use to pay for the next big tax bill, which would extend the 2017 tax cuts, which are scheduled to expire in 2025. This is a major priority for the incoming Trump Administration and Republicans in Congress.

Extending the expiring provisions of the 2017 tax revisions will have a revenue impact on the federal government of $4.5 trillion over 10 years. To “offset” this loss of revenue, Congress tries to find other revenue streams to plug the holes. 

Whenever the tax code is opened for revisions it is akin to blood in the water attracting sharks. If you don’t have a seat at the table, then you are assured to be on the menu. IHMM’s Executive Director is a part of this process with the Tomorrow’s Workforce Coalition and IHMM is discussing increasing that involvement in meetings this next week.

Here is what tax writers are looking at to pay for extending the 2017 expiring tax provisions. This is an initial, NOT a final list and other options will arise:

  1. A 10% tariff applied to all imports – $1.9 trillion
  2. A “border adjustment tax, or European style VAT applied as a consumption tax on imported goods and disallow deductions for costs of imported goods and eliminate tax on exports – $1.2 trillion
  3. Repeal the existing SALT deduction of $10,000 – $1 trillion
  4. Eliminate the Home Mortgage Interest deduction – $1 trillion
  5. Eliminate non-citizens from Federal health benefits – $35 billion
  6. Repeal Green Energy credits, Would eliminate clean vehicle, clean energy, efficient building, and other energy credits introduced in the Inflation Reduction Act (IRA). Cutting additional IRA Green-related credits could add $405 billion in savings. – $796 billion
  7. Repeal the Employee Retention credit – $75 billion
  8. SSN requirement for Child Tax credit, required in the 2017 bill but expiring – $28 billion
  9. Tax college endowments  14% – applies to larger endowments, but is currently set at 1.4% – $10 billion
  10. Eliminate non-profit status for hospitals – Hospitals that are 501(c)(3)s would be taxed as for-profit entities – $260 billion
  11. Repeal charitable deductions to health organizations – Donations to 501(c)(3) hospitals would not be deductible as charitable – $83 billion
  12. Tax Scholarship and Fellowship Income – Currently these are excluded as long as they’re used on tuition and related expenses. This option would make them taxable. – $54 billion
  13. Tax Employer-Provided Transportation and Gym Use – Currently employer-provided gym use is not taxable and transportation up to $315 per month is excludable – $70 billion
  14. Eliminate Deduction on Student Loan Interest – $30 billion
  15. Deny Social Security to those with Felony Warrants – $3 billion
  16. Ban Telehealth Facility Fees – This would eliminate facility fees for “telehealth” visits. – $2.3 billion
  17. Income Verification for Free / Reduced School Meals – Would require income verification for free breakfast and lunch for qualifying students. – $9 billion
  18. Onshore Oil and Gas Leasing – Expanding the current leases for onshore sites. – $500 million

There is more to come in what will be a feeding frenzy of chaos as Congress sets to write the 2025 revisions to the tax code.