All articles tagged with #federal tax
Harvard’s endowment reached nearly $68 billion after a 27.1% return in fiscal 2026, driven largely by a $2.2 billion stake in SpaceX. Despite this strong performance, the university faces a $78.7 million deficit in unrestricted funds and a new 8% federal tax on investment income, costing an estimated $300 million annually.
A proposed temporary suspension of the federal gasoline tax (18.4 cents per gallon) would likely trim pump prices only modestly, with regular gas dipping to about $4.34/gal and diesel to $5.39/gal, since recent price hikes have outpaced the levy. It would require congressional action and would reduce Highway Trust Fund revenue (roughly $2.1 billion per month), while state tax waivers may offer more meaningful relief; experts warn the policy could have unintended market effects and limited impact on overall prices.
With U.S. gas prices climbing toward $5 a gallon, Trump has floated suspending the 18-cent federal gas tax—a move that would require Congress. NBC News’s analysis shows that even a complete pause on all state and federal taxes would leave prices about 35% higher than they were at the war’s start. The average driver pays roughly 51 cents per gallon in taxes and fees, of which 18 cents go to the federal government; Georgia has already paused its own tax, and a broader pause would affect highway and transit funding via the Highway Trust Fund.
Energy Secretary Chris Wright said the Trump administration is open to suspending the 18.3-cent federal gasoline tax to ease elevated pump prices tied to Middle East tensions; any move would require Congress and involve tradeoffs, with estimates suggesting a suspension could shave 10–16 cents per gallon, while other relief measures have limited impact on a supply shock from Iran-related disruption.
The Mega Millions jackpot has reached $489 million, making it the 15th largest in the game's history. A winner opting for the lump sum would take home approximately $172 million after a mandatory 24% federal tax withholding, potentially dropping to $142.6 million with a full 37% federal marginal rate. The next drawing is scheduled for Tuesday night.
House Republicans reintroduced the Death Tax Repeal Act to permanently repeal the federal estate tax, arguing that it penalizes families who have built successful farms, ranches, or small businesses. However, bipartisan support for repealing the tax is lacking, and experts believe it's unlikely to pass in the current split Congress. While the federal estate tax exemption has risen to $13.61 million per individual or $27.22 million for spouses in 2024, these limits are set to decrease after 2025. Additionally, only a small percentage of Americans are impacted by the estate tax, with most not being affected by the levy.
Democratic Minnesota Governor Tim Walz criticized the federal government's decision to tax rebate checks received by Minnesotans this year, calling it "bulls---." The IRS's decision to tax the rebates while pandemic relief payments in other states were tax-free could cost Minnesota residents between $26 and $286, depending on income and the rebate amount. Walz has spoken to Biden administration officials about the issue but no progress has been made. He argued that Minnesotans were being treated unfairly because the state missed a cutoff by 15 days to qualify for tax-free status, while other states were able to qualify. The Minnesota budget is projected to have a surplus of $2.4 billion through June 2025.