
Disaster relief done — what next?
WELL, LOOK AT THAT: It wasn't exactly a unicorn, but something relatively uncommon happened last week — Congress enacted a narrow, uncontroversial tax provision.
With good reason, too: The Senate cleared a bipartisan measure, H.R. 517 (119), by unanimous consent Thursday that would offer quicker relief from tax filing deadlines for those affected by natural disasters, in large part in response to the deadly flooding in Texas.
In essence, the measure empowers the IRS to offer filing relief to taxpayers in areas where a state has declared an emergency. Until now, the agency could delay filing deadlines only for disasters declared by the federal government, which can take longer to materialize.
Sen. Catherine Cortez Masto (D-Nev.), one of the measure's sponsors, noted that only one county in Texas had received a federal declaration as of Thursday, while a state emergency had been proclaimed in more than 20 counties.
The House had passed the measure unanimously in March, so the Senate's action last week sends it to President Donald Trump's desk.
'This bill will allow those impacted by a natural disaster to have certainty that tax filing deadlines will be extended earlier in the process, and sometimes before the disaster occurs, so they can focus on their safety,' said Mark Koziel, the president of the American Institute of CPAs.
MORE ON THAT in a second, but first — welcome to a special Bastille Day version of Weekly Tax.
Not with a bang, but with a…: Today marks 160 years since an English mountaineer named Edward Whymper led the first successful ascent of the Matterhorn, the Alps peak along the border of Italy and Switzerland. (The descent, meanwhile, was far less successful.)
Help us reach new heights. Send your best tips and feedback.
Email: bbecker@politico.com, bfaler@politico.com and teckert@politico.com.
You can also reach us on X at @berniebecker3, @tobyeckert, @brian_faler, @POLITICOPro and @Morning_Tax.
Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories.
LOOKING AHEAD: Outside events clearly prompted the quick congressional action on the natural disaster filing bill.
But it's worth noting that's far from the only measure of its kind that lawmakers have looked at this year.
In fact, Senate Finance Chair Mike Crapo (R-Idaho) and Sen. Ron Wyden of Oregon, the top Democrat on the tax-writing panel, released draft legislation early this year that would make broad reforms in tax administration.
Across the way, the House Ways and Means Committee has cleared a string of other proposals aimed at making life easier for taxpayers.
All of that prompted some speculation that the two parties might be able to work together on sweeping tax administration legislation this year or next.
We'll see about that. This Congress might only be about a quarter over, but it's unclear whether the bruised feelings over the GOP megabill will subside enough for any real bipartisan tax action in the coming months.
Some key Republicans have talked up areas for potential cooperation on taxes. But there's also some chatter within the GOP about doing another partisan budget reconciliation measure — or maybe two — while they have full control, which likely wouldn't help the chances for a bipartisan tax package.
NOT SO FAST! A nonprofit group is trying to stop a proposed settlement that would give churches an official OK to wade into political activity.
Americans United for Separation of Church and State announced Friday that it had asked a federal court to allow it to defend what's known as the Johnson Amendment, which bars certain tax-exempt groups from endorsing candidates and other types of politicking.
The group is seeking to intervene after the IRS and religious groups challenging the Johnson Amendment reached a settlement, as part of which the agency said that the decadeslong ban on weighing in on political campaigns didn't apply to churches.
Essentially, the IRS also noted that it was just coming clean on a longstanding unwritten rule — that it had rarely enforced the Johnson Amendment when it came to religious groups.
In many ways, that's more broadly true of how the agency has handled the ban on political activity for nonprofits. But AU, the separation of church and state group, argued that the Johnson Amendment 'protects the integrity of both our elections and nonprofit organizations, including houses of worship.'
'The Trump administration's radical reinterpretation of the Johnson Amendment is a flagrant, self-serving attack on church-state separation that threatens our democracy by favoring houses of worship over other nonprofits and inserting them into partisan politics,' added the group's president, Rachel Laser.
Advocates for nonprofits have long worked to preserve the Johnson Amendment, making it a top lobbying priority for both the 2017 Trump tax cuts and the most recent megabill.
Those groups argue that allowing churches and other nonprofits more leeway to be political will erode the nonpartisan mission of most organizations and how they're viewed by the public at-large.
DOWN GOES THE DST: Brussels has prepared to ditch plans for a digital tax to help ease trade negotiations with the U.S., as our Gregorio Sorgi noted Friday.
At least that was the plan: The European Commission's list of upcoming taxes isn't scheduled to be released until Wednesday, and the report about Brussels dropping its DST came before Trump threatened to bump up tariffs on the EU to 30 percent.
In return, European leaders threatened their own 'proportionate countermeasures,' leaving the path forward decidedly unclear.
But taking a step back: The EU's willingness to scrap its digital tax would be just the latest example of the U.S. getting its way without having to rely on Section 899, the so-called revenge tax that was dropped from the GOP megabill over concerns that it would impede foreign investment. (Worth noting: Brussels is also considering a broader tax on big companies that would also hit tech titans affected by a DST.)
Canada discarded its digital tax a couple weeks ago, just hours before payments were due, as part of its trade negotiations with the U.S.
And Treasury Secretary Scott Bessent's agreement with the G7 to stop parts of the global tax deal from applying to the U.S. — most notably an undertaxed profits rule that allowed other countries to tax American companies that didn't meet minimum tax thresholds — paved the way for Republicans to drop Section 899 from the megabill.
Next question, though: What's the broader impact of that G7 agreement on a global tax pact where around 140 countries signed on to the framework?
Top officials at the Organization for Economic Cooperation and Development, which led negotiations on the agreement, have argued that the side deal strengthens the overall pact.
But Mindy Herzfeld of Tax Notes isn't so sure, arguing that other countries might now seek their own carve-outs from the global tax deal, even if none of them has the same clout as the U.S.
'It remains uncertain whether the exceptionalism of the United States will hold at a time when its broader withdrawal from multilateral commitments has weakened the dollar and confidence in its systems,' Herzfeld wrote.
Around the World
Bloomberg: 'UK Wealth Tax Given 'Zero Chance' Amid Cash Crunch for Reeves.'
Reuters: 'German upper house of parliament approves $54 billion corporate tax relief package.'
Reuters, again: 'Ferrari Chair John Elkann settles inheritance tax dispute in Italy.'
Around the Nation
WEWS: 'Ohio GOP plans to override Gov. DeWine school vetoes in order to provide property tax relief.'
KTOO: 'Bill requiring car rental apps to collect Alaska taxes avoids second veto.'
Washington State Standard: 'Megabill's elimination of tax credits for clean energy projects could cost WA $8.7 billion.'
Also Worth Your Time
Wall Street Journal: 'Investors Get New Breaks on Capital-Gains Taxes in Trump Law.'
Bloomberg: 'Trump Tax Law Quietly Takes Aim at Popular Perk: Office Snacks.'
Tax Notes: 'Oversight of IRS AI and Data Analytics Faces Setback.'
Did you know?
Mountains in California, Colorado and Nevada have all been named after the Matterhorn.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Hill
22 minutes ago
- The Hill
Trump backs Joe Gruters of Florida as next RNC chair
President Trump on Thursday threw his support behind Florida state Sen. Joe Gruters (R) to serve as the next head of the Republican National Committee (RNC) with current chairman Michael Whatley set to announce a Senate bid in the coming days. Trump in a Truth Social post endorsed Whatley to run for Senate in North Carolina to replace Sen. Thom Tillis (R-N.C.), who will not seek reelection. A source familiar with the matter confirmed to The Hill earlier Thursday that Whatley was expected to run for the seat, with Trump's blessing. 'Mike would make an unbelievable Senator from North Carolina,' Trump said of Whatley, who previously led the North Carolina GOP. 'He is fantastic at everything he does, and he was certainly great at the RNC where, in the Presidential Election, we won every Swing State, the Popular Vote, and the Electoral College by a landslide!' 2024 Election Coverage 'Fortunately, I have somebody who will do a wonderful job as the Chairman of the RNC,' Trump added. 'His name is, Joe Gruters, and he will have my Complete and Total Endorsement. So, should Michael Whatley run for the Senate, please let this notification represent my Complete and Total Endorsement.' Gruters is a Trump ally who has served in the Florida Senate since 2018 and as RNC treasurer since earlier this year. Gruters has clashed with Florida Gov. Ron DeSantis (R), who was a bitter rival of Trump during the 2024 presidential primary. Gruters would need to be elected by RNC members to lead the organization, but would likely face no competition with Trump's backing.
Yahoo
an hour ago
- Yahoo
RNC Chair Michael Whatley will run for Senate from North Carolina, sources tell CNN
Republican National Committee Chairman Michael Whatley is expected to run for the Senate in North Carolina, setting up a marquee race in next year's midterms, two sources familiar with Whatley's plans tell CNN. He will enter the race with President Donald Trump's backing, after Trump's daughter-in-law, Lara Trump, opted against running for the seat being vacated by retiring Republican Sen. Thom Tillis. A North Carolina Republican consultant who has worked to set up Whatley's campaign told CNN on Thursday that a formal announcement is expected to come 'in the next week to 10 days.' Politico first reported Whatley's plans. The president preemptively threw his support behind Whatley in a post on Truth Social Thursday night where he also endorsed RNC treasurer Joe Gruters to succeed him as the committee's leader. 'Mike would make an unbelievable Senator from North Carolina,' Trump wrote. 'He is fantastic at everything he does, and he was certainly great at the RNC where, in the Presidential Election, we won every Swing State, the Popular Vote, and the Electoral College by a landslide! But I have a mission for my friends in North Carolina, and that is to get Michael Whatley to run for the U.S. Senate.' The RNC chairman's entry sets the stage for what's likely to be one of the best-funded, highest-profile Senate races on the 2026 midterm calendar. Former Gov. Roy Cooper, a popular Democrat who was term-limited after eight years and left office at the end of 2024, also plans to announce a Senate run in the coming days, sources told CNN. Lara Trump plans to remain in her in role as host of a weekly Fox News show and will also appear alongside Whatley at upcoming political events, a source said. 'I am deeply grateful for the encouragement and support I have received from the people of my home state whom I love so much,' she said in a post on X. 'While I am not running in this election, my passion for Making America Great Again burns brightly, and I look forward to the future, wherever that leads.' The clash in North Carolina comes as Democrats, who need to flip four Senate seats to claim the majority, look for opportunities to make races for Republican-held seats competitive on an unforgiving map in which North Carolina could be the only true toss-up. Democrats' Senate hopes of flipping GOP-held seats elsewhere could hinge on retirement and recruiting questions. In Maine, five-term Sen. Susan Collins has beaten back stiff Democratic challenges in the past. In Texas, Sen. John Cornyn faces a primary challenge from state Attorney General Ken Paxton, a scandal-plagued conservative firebrand who Democrats view as a much weaker general election candidate. In Iowa, Sen. Joni Ernst has not yet announced her reelection plans, though Republicans have several strong potential replacements if she opts out. In Ohio, Democrats hope former Sen. Sherrod Brown, who narrowly lost his seat in 2024, will attempt a comeback — this time challenging Republican Sen. Jon Husted. Democrats must also defend Senate seats in several swing states, including Georgia, where Sen. Jon Ossoff is seeking reelection and open seats in Michigan and New Hampshire. Whatley previously spent five years as chairman of the North Carolina Republican Party and the RNC's general counsel. He took the helm of the national party in 2024 after Trump's tensions with former RNC chairwoman Ronna McDaniel. Gruters, who Trump on Thursday said 'will have my Complete and Total Endorsement' to succeed Whatley as chairman, was floated as a possibility for the leadership post in 2024 as well. 'I'm looking forward to advancing President Trump's America First agenda as the next Chair of the RNC,' Gruters said in a statement to CNN. 'He is the greatest President in our nation's history, and I'm ready to serve, fight, and win for our party and our country.' The Florida state senator is a longtime friend and ally of Trump, bucking the party line in the Sunshine State by backing Trump over Gov. Ron DeSantis in the 2024 Republican presidential primary. Their relationship predates Trump's time in office to when he was a celebrity developer still weighing a political future. In 2012, on the eve of the Republican National Convention in Tampa, Gruters convinced Trump to headline a fundraiser for the nearby Sarasota GOP. Gruters, who was chairman of the local party at the time, named Trump the Statesman of the Year. Trump had endorsed Gruters in his bid to become Florida's chief financial officer, a cabinet-level position that is elected statewide. It's unclear if Gruters will drop out of the race. DeSantis recently passed over Gruters and spurned Trump when he filled a vacancy at state CFO with state Sen. Blaise Ingoglia. This story has been updated with additional information. CNN's Donald Judd and Steve Contorno contributed to this report.


Politico
an hour ago
- Politico
Trump backs Florida state senator to lead RNC
Joe Gruters 'will have my Complete and Total Endorsement,' the president wrote. The 48-year-old Florida lawmaker is the RNC treasurer and previously served as chair of the Florida Republican Party. | Steve Cannon/AP Photo By Seb Starcevic 07/24/2025 10:36 PM EDT President Donald Trump is backing Florida state Sen. Joe Gruters to chair the Republican National Committee and replace Michael Whatley as he runs for Senate in North Carolina. Trump announced his support Thursday in a Truth Social post about Whatley, who is expected to publicly announce his Senate candidacy in the coming days. 'Fortunately, I have somebody who will do a wonderful job as the Chairman of the RNC,' he wrote. 'His name is, Joe Gruters, and he will have my Complete and Total Endorsement.'