Tax & Accounting News

TaxBuzz Top 5 - Trump's Tariffs and the "Pink Tax," Mississippi Passes Bill That Would Eliminate State Income Tax, and More

by
Rebekah Barton
on
3/21/2025
TaxBuzz Top 5 - Trump's Tariffs and the "Pink Tax," Mississippi Passes Bill That Would Eliminate State Income Tax, and 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. Could Trump’s Tariffs Bring Back the “Pink Tax”?

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Credit: ShotShare/Getty Images

A new round of proposed tariffs by President Donald Trump is raising alarms that women could once again bear disproportionate financial costs at the checkout line. In a recent interview with Politico’s Women Rule newsletter, Democratic lawmakers and trade experts expressed concern that Trump’s latest trade agenda could revive what’s been dubbed the “pink tariff” — a gendered version of the so-called pink tax.

Historically, many women’s goods — especially apparel, footwear, and feminine hygiene products — were taxed at significantly higher rates than comparable men’s products. This phenomenon is widely referred to as a "pink tax." In one example, a pair of women’s sneakers was taxed at 10% while the men’s version saw only a 2.5% duty. That disparity has been traced back to decades-old trade code language, but Trump’s sweeping tariff plans risk reigniting these imbalances.

Critics argue that these new tariffs could disproportionately affect women, especially low-income women and single mothers, who are more likely to be primary household shoppers. Sen. Elizabeth Warren and others are calling for a gender-impact review of any new trade measures.

While the Trump campaign has not addressed the potential gender effects, economists warn that without updated tariff schedules or exemptions, a new wave of duties could once again make essential goods more expensive — and more unequal — for women.

      Related Reading: California Officially Bans Gender-Based Pricing on Products

2. Colombia’s Incoming Finance Chief Promises to Boost Tax Revenue

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Credit: Geraint Rowland Photography/Getty Images

Colombia’s newly appointed finance minister, Juan Camilo Restrepo, announced plans to significantly increase the nation’s tax revenues without raising existing rates, according to Bloomberg. Restrepo, who was tapped to replace outgoing minister Ricardo Bonilla, said his priority is to modernize tax collection systems and close loopholes, aiming to improve enforcement and reduce evasion.

Restrepo emphasized that Colombia’s low tax-to-GDP ratio—among the lowest in Latin America—leaves the government with limited capacity to fund essential services. “We have to raise tax revenue, not by creating new taxes, but by collecting what is already owed,” he said in his first public comments after the appointment.

His remarks come at a critical time for President Gustavo Petro’s administration, which has faced economic challenges and political backlash over spending and structural reforms. The government’s goal is to achieve a fiscal deficit of 4.3% of GDP this year, a target that Restrepo believes can be met with improved compliance rather than new tax hikes.

Restrepo also pledged transparency and dialogue with Congress and the private sector, signaling a more conciliatory approach than some of Petro’s earlier economic policies. Analysts are watching closely to see if his plans can shore up investor confidence while meeting Colombia’s ambitious fiscal goals.

3. Washington Senate Democrats Unveil Sweeping $17B Tax Package

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Credit: Chris Boswell/Getty Images

Washington State Senate Democrats have proposed a broad new tax package aimed at raising $17 billion over the next two budget cycles, targeting the state’s wealthiest individuals and largest employers to address an anticipated $16 billion budget shortfall. The plan includes a 1% wealth tax on financial assets over $50 million, expected to impact about 4,300 people and raise $4 billion annually beginning in 2027.

The package also introduces a 5% payroll tax on compensation above $176,100 for companies with payrolls exceeding $7 million, generating roughly $2.3 billion per year. Additionally, it would adjust the state’s property tax growth cap to better reflect inflation and population growth, potentially adding $779 million in revenue over four years.

In a nod to tax fairness, the proposal would lower the state sales tax from 6.5% to 6%, a change projected to reduce revenue by $1.3 billion annually but provide relief for everyday consumers.

In a report from the Washington State Standard, Senate Majority Leader Jamie Pedersen emphasized that the goal is to ensure “those with the greatest ability to pay contribute more.” Still, the package faces resistance from Republicans and hesitation from Gov. Bob Ferguson, who has yet to endorse the plan—particularly the wealth tax component.

The House is expected to release its own budget plan soon.

4. Mississippi House Passes Bill to Eliminate State Income Tax

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Credit: Sean Pavone Photo/Getty Images

Mississippi's House of Representatives has passed a bill to phase out the state’s income tax, setting the stage for a major overhaul of the state’s tax structure. The legislation, per local news network WAPT, approved largely along party lines, would eliminate the income tax by 2034, beginning with a $100 million cut in 2025 and continuing with reductions each year if revenue benchmarks are met.

Supporters, including Republican House Speaker Jason White, say the plan will boost the state’s economy by putting more money into residents’ pockets and making Mississippi more competitive with neighboring states like Florida and Texas, which have no income tax. “We’re trying to let Mississippians keep more of what they earn,” White said.

Critics, however, warn that the plan could destabilize the state’s budget, especially given Mississippi’s heavy reliance on federal funds and sales tax revenue. They argue that the bill lacks concrete safeguards to protect funding for essential services like education and healthcare if future revenues fall short.

The bill now heads to the Mississippi Senate, where it’s expected to face more scrutiny. If enacted, it would represent one of the most aggressive income tax elimination plans in the country.

5. Indiana Lawmakers Weigh Cigarette Tax Hike to Support Budget Changes

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Credit: Catherine Falls Commercial/Getty Images

Indiana lawmakers are considering a proposal that would raise the state’s cigarette tax for the first time in over 15 years as part of a broader effort to reshape the state budget. The move, according to WTHR, is currently under discussion at the Statehouse, and  would increase the cigarette tax by $1 per pack—from the current $0.995 to just under $2.

Supporters of the tax hike argue it could serve two key purposes: generate new revenue for public health initiatives and discourage smoking in a state with one of the highest smoking rates in the country. “Raising the cigarette tax is a proven way to lower smoking rates and save lives,” said Bryan Hannon, Midwest director for the American Cancer Society Cancer Action Network.

Health advocates are pushing for the tax revenue to be earmarked for smoking cessation programs and Medicaid funding. However, some lawmakers remain cautious, citing concerns about the impact on small businesses and whether it could push smokers to buy cigarettes out of state or online.

The proposed tax increase is still being debated, and no final vote has been scheduled yet. If approved, it would mark Indiana’s first cigarette tax increase since 2007.

Which headline this week most interests you?

Feature Image Credit: Firn/Getty Images

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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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