Congress Floods Tax Code With Carve-Out Bills as 2028 Expiry and Midterms Raise Stakes
Updated
Updated · POLITICO · Aug 13
Congress Floods Tax Code With Carve-Out Bills as 2028 Expiry and Midterms Raise Stakes
2 articles · Updated · POLITICO · Aug 13
Summary
Lawmakers in both parties are rolling out targeted tax-break bills for everyday expenses—from utility bills and health care to boat-loan interest—as they try to answer voter affordability worries before the midterms.
The proposals borrow the branding and logic of Republicans’ 2025 tax law, which added breaks on tips, overtime, seniors and car-loan interest and opened the door to more niche exemptions.
Critics on the right and left say the carve-outs clutter the tax code, shrink the tax base and divert revenue as the U.S. runs a large deficit.
2028 is the next pressure point: key provisions of the GOP megabill are set to expire, giving both parties incentives to extend existing breaks and add new ones rather than risk letting popular tax cuts lapse in a presidential election year.