Tax & Accounting News

TaxBuzz Top 5 - Idaho Signs Historic Tax Cut Into Law, Trump Calls for Permanent Income Tax Reductions & More

by
Rebekah Barton
on
3/7/2025
TaxBuzz Top 5 - Idaho Signs Historic Tax Cut Into Law, Trump Calls for Permanent Income Tax Reductions & 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. Idaho Signs Historic $253 Million Tax Cut Bill Into Law

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Credit: WisKay/Getty Images

​On March 6, 2025, Idaho Governor Brad Little signed House Bill 40 into law, enacting a $253 million tax cut—the largest in the state's history. This legislation reduces both individual and corporate income tax rates from 5.695% to 5.3%. Additionally, KTVB reports, it expands tax exemptions to include U.S. military pensions and removes capital gains taxes on precious metals. 

House Speaker Mike Moyle, the bill's sponsor, noted that middle-class Idahoans could see approximately $130 in tax savings. However, some critics argue that the tax cut may not provide substantial relief for average residents and could significantly reduce future revenue for essential services like public safety and infrastructure.

This tax cut is part of a broader legislative effort to provide tax relief, with additional proposals under consideration that could total nearly $453 million in cuts. These include House Bill 304, proposing a $100 million property tax reduction; House Bill 93, introducing a $50 million Parental Choice Tax Credit; and House Bill 231, suggesting a $50 million increase in the grocery tax credit.

Proponents of these measures, like Speaker Moyle, believe that the state's budget surplus allows for significant tax relief while still addressing essential state needs. Opponents, however, caution that such substantial cuts could compromise funding for critical programs, including fire protection and water infrastructure.

2. Trump Calls for Permanent Income Tax Cuts Across the Board

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Credit: Andrew Harnik/Getty Images

During a recent Congressional address, President Donald Trump reaffirmed his commitment to making the 2017 Tax Cuts and Jobs Act permanent while also advocating for additional reductions to income taxes across all brackets. Trump emphasized that maintaining lower tax rates would boost economic growth and put more money back into the hands of American workers. He also reiterated his previous proposals to eliminate taxes on Social Security benefits, tips, and overtime pay, positioning them as measures to support middle-class Americans.

Bloomberg shared one of the President's comments, “We’re seeking permanent income tax cuts all across the board." 

While Trump framed the tax cuts as essential for economic prosperity, critics have raised concerns about their potential impact on the federal deficit, which could increase significantly if the cuts are extended without corresponding spending reductions. Congressional Republicans remain divided on the issue, with some supporting the proposal while others express reservations about the long-term fiscal consequences. The debate over permanent tax cuts is expected to be a key focus in the coming months as lawmakers negotiate broader fiscal policy decisions.

3. France Imposes New 'Solidarity Tax' on Flights Departing the Country

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Credit: aristotoo/Getty Images

France has introduced a solidarity tax on plane tickets for flights departing from French airports, adding extra costs to travelers. The tax, which took effect on March 1, applies to all commercial flights and varies based on the destination. Economy travelers flying within France or Europe will see an additional charge of approximately $8, while intermediate and long-haul flights will face higher levies of $16 and $40, respectively.

The French government claims that airlines may absorb the cost rather than passing it on to customers, but critics argue the tax could hurt competitiveness. Industry leaders, including ACI Europe and Ryanair CEO Michael O’Leary, have spoken out against the measure, warning that it could reduce airline capacity in France and weaken the country’s aviation sector.

Per Fox News, this tax increase comes as France aims to regulate air travel’s environmental and economic impact while preparing for a surge in tourism, particularly with the upcoming Paris Olympics and the reopening of Notre Dame Cathedral. With over 100 million international visitors in 2024, the country remains one of the world’s top travel destinations—despite growing concerns about rising travel costs.

4. Social Security Fairness Act Boosts Benefits—But Could Also Increase Taxes

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Credit: Hisham Ibrahim/Getty Images

Millions of public-sector retirees will see higher Social Security benefits as the Social Security Fairness Act eliminates two key provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that previously reduced payments for those receiving government pensions. With the law retroactive to January 2024, eligible retirees may receive a one-time lump sum along with increased monthly benefits moving forward. Some recipients could see an increase of over $1,000 per month, according to the Social Security Administration.

However, financial experts warn that the extra income could push some retirees into higher tax brackets or increase the portion of their benefits subject to taxation. “They may be taxed, but not until 2025 taxes,” explained CPA Mark Kohler in a USA Today article, noting that taxes apply in the year income is received.

While the changes will provide relief to many affected retirees, advisers recommend planning ahead to manage potential tax implications. Those expecting a lump sum should consider tax-efficient strategies, such as adjusting withdrawals from other retirement accounts or making estimated tax payments, to avoid surprises next tax season.

5. Chicago Homeowners Shoulder Higher Tax Burden as Downtown Properties Lose Value

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Credit: James Gilbert/Stringer/Getty Images

A new Chicago Sun-Times analysis reveals that falling downtown property values have shifted a greater share of the city's tax burden onto homeowners and businesses outside the Loop. Since the COVID-19 pandemic, major commercial properties—including Water Tower Place and high-profile office buildings—have seen their tax bills drop dramatically due to declining occupancy and successful assessment appeals.

With downtown properties paying less, the overall tax levy has remained high, forcing other property owners to cover the shortfall. In the past five years, total property tax collections in Chicago have increased by 22%, from $6.8 billion to $8.3 billion. Areas like the Near West Side, Logan Square, and Bronzeville have been hit hardest by rising taxes, particularly as new developments drive up assessments.

Experts warn that Chicago’s tax structure remains in flux, with some proposing commercial-to-residential conversions as a way to revitalize vacant office buildings. However, such shifts could further impact the tax base, as residential properties are taxed at a lower rate than commercial real estate.

While Google’s planned move into the Thompson Center offers a potential boost for downtown, city officials are still working on long-term solutions to stabilize property values and prevent additional tax burdens from falling on homeowners.

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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