Speaker of the House Mike Johnson (R-La.) is getting set to release his plan for reconciliation and tax reform. The Taxpayers Protection Alliance (TPA) emphasizes the need to permanently extend the Tax Cuts and Jobs Act of 2017 (TCJA) and focus on provisions that benefit American workers and businesses. The TCJA was extremely beneficial to both American workers and business owners. By limiting itemized deductions, expanding the standard deduction, and putting a cap on state and local tax deductions, the TCJA simplified the tax code for the nation. Permanently extending the TCJA is essential to supporting continued economic growth and American business investment. Congress should avoid including provisions that would eliminate taxes on tips, overtime pay, and Social Security payments. Eliminating the tax on tips is a gimmick that will only benefit 5.1 percent of workers. A teacher making $60,000 a year shouldn’t have a higher tax bill than a server making $60,000 in tips. Such a provision
would cut against the simplicity that so embodied the TCJA. Congress should also avoid reclassifying profits made by investment managers as individual income, rather than capital gains. Losing this incentive stands to negatively affect economic growth, consumers, and taxpayers. Similarly to the TCJA, the tax code should reward investing in the American economy and its upstart small businesses. Simplifying the tax code and ending wasteful spending should be the key goals for this upcoming reconciliation package.

Harmonize Tax Exemptions for Charitable Giving

Congress is now engaged in negotiations to renew the Tax Cuts and Jobs Act (TJCA), with the year-end expiration of many provisions looming. From the corporate tax rate to itemized deductions, this process will involve the reconsideration of numerous policies, both big and small, from that landmark 2017 law. Along the way, Congress should consider another bit of tax simplification, whose proposal postdates the TCJA. In 2018, then-Rep. Kristi Noem (R-S.D.) and Rep. Jason Smith (R-Mo.), now the chair of the House Ways and Means Committee, proposed the “Family Business Legacy Act,” a needed reform that never managed to navigate the choppy waters of congressional procedure. The bill contained a simple, common-sense idea: to smooth an inconsistency in the tax code. It sought to exempt from assessment the donations of estates to section 501(c)(4), (c)(5), and (c)(6) organizations. This would harmonize the respective tax treatments of contributions to nonprofits provided for in the wills of the
deceased and those made by living gift-givers. In other words, Noem and Smith sought to apply the same tax treatment to all such donations irrespective of whether those donations are provided during life or in a will at death.

Congress exempted the former category from the gift tax in 2015’s PATH Act. A full decade later, little excuse remains not to finish the job and simplify the tax code to ensure that all nonprofit gifts receive the same treatment under U.S. tax law. Little reason can be found to oppose this change. A donation made in life differs not at all from one made at death. Congress should not saddle charitable Americans confronting death — or their heirs — with senseless inconsistencies. A family wracked by illness, age, and grief should not be forced to contort its financial and estate planning to accommodate the federal tax code’s pointless idiosyncrasies. If donating after death suits the family, the government has no grounds to gainsay or penalize that determination. The fiscal effects of such a proposal will likely prove small. Under the status quo, any sufficiently motivated donor can simply give to her nonprofit of choice before departing for the Stygian shore — notwithstanding the likelihood
of heightened personal inconvenience noted above.

Tax codes should resemble an orderly urban street grid, not a labyrinthine maze. Simplicity and consistency should be paramount. Like actions should receive the same treatment as like actions. These principles should obtain on grounds both of essential fairness and operational expediency. Tax law — like any other kind of law — should apply equally to similarly situated individuals, and complexity and purposeless complexity breed unwitting noncompliance. Congress confronts a monumental task as it deliberates and bargains to extend the TCJA. As it considers these towering mountains of tax policy, however, it should not forget small hillocks, like tax-treatment harmonization. Although possessed of less lofty peaks, such legislation can improve substantially the lives of American citizens and save family businesses money in compliance and tax-preparation costs. It is often the distinctly the less glamorous tasks of governance — the ordinary administration and incremental improvement of the law
— that do the most good. Harmony, convenience, fairness and consistency — making consistent the estate and gift tax laws offers all these benefits. Congress should take care to take this chance to improve the tax code and safeguard grieving families from additional anxiety.

RFK Jr.’s Legal Problem

With a full Senate vote on Robert F. Kennedy Jr.’s nomination for secretary of Health and Human Services (HHS) fast approaching, lawmakers must review his background fully. That will help them better understand the implications of confirming him to the post. Among the more troubling of RFK Jr.’s past activities that must be studied is his lengthy career as a mass tort litigation attorney for multiple firms that initiated frivolous, rent-seeking lawsuits against American companies. While Kennedy’s positions surrounding vaccines and healthy foods dominate public discourse, his lucrative ties to personal-injury trial firms have largely escaped scrutiny. These reveal a troubling intersection of private legal entanglements and public service obligations.

RFK Jr.’s financial disclosures underscore the depth of his personal connection to mega-trial firms. In June 2023, Kennedy reported more than $5.48 million in earnings from his partner role at Kennedy & Madonna. This trial firm gained recognition for litigation against such corporations as Southern California Gas, Ford, and chemical manufacturers, including 3M and DuPont. Kennedy & Madonna has garnered attention for representing 90 public entities in Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS)–related lawsuits. RFK Jr.’s representation of these entities raises significant questions about his ability to serve as an impartial arbiter at HHS. HHS is the umbrella agency overseeing the Food and Drug Administration, the Centers for Disease Control and Prevention, and the Agency for Toxic Substances and Disease Registry. Those entities’ regulatory decisions significantly influence trial attorneys’ strategies when advising clients about filing lawsuits against corporations.

The downstream effect of increased mass lawsuits extends beyond corporate defendants. The annual cost of excessive torts nationwide is staggering. Frivolous litigation resulted in a direct loss of $367.8 billion to the U.S. economy in 2024. This translated into a hidden “tort tax” of $1,666 per consumer. The economic consequences of expanding liability for businesses run directly counter to the majority of Donald Trump’s campaign platform, which promises to protect businesses and foster economic expansion. An HHS led by RFK Jr. risks compounding the ills of the economic status quo, with typical Americans ultimately bearing the financial burden. Although his current bubble of popularity has come from his recent positions, RFK Jr. has a long career in which he has made his views on many subjects crystal clear. It would be foolish to disregard that record. Until recently, many — especially among Republicans — considered his preferred tactics of activist litigation unsavory. That should be
remembered as he is considered as regulator-in-chief of one of the most powerful and economically significant agencies in Washington. As the Senate weighs Kennedy’s confirmation, it must consider the broader implications of his deep-seated ties to trial firms. His potential leadership at HHS could open the door to a flood of litigation that enriches the trial bar and disincentivizes economic development, all while imposing substantial costs on the broader American economy.

BLOGS:

Monday: TPA Leads Coalition Letter to Trump Administration Urging All-Of-The-Above Energy Approach ([link removed])

Tuesday: Taxpayer Watchdog Urges Senate to Reject Unconstitutional Social Media Bill ([link removed])

Wednesday: TPA Leads Coalition Letter to State Legislators Opposing Age Verification ([link removed])

Thursday: What You Should Be Reading: January 2025 ([link removed])

Friday: Trump: The Weekend Tariff Warrior ([link removed])


MEDIA:

January 30, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on legislation potentially limiting access to public information.

January 30, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me about the politization of the information request process.

January 30, 2025: WCBM-AM (Baltimore, Md.) interviewed me about Public Information requests.

January 30, 2025: The Baltimore Sun (Baltimore, Md.) ran my op-ed, "Trump must stop his war on watchdogs."

February 1, 2025: The Rapid City Journal (Rapid City, S.D.) ran TPA's letter to the editor, "An invasion of privacy."

February 2, 2025: RealClear Markets ran TPA's op-ed, "The Biden FTC Attacked Amazon With Help of a Chinese Competitor."

February 3, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on President Trump's firing of 17 Inspectors General.

February 3, 2025: The American Spectator ran TPA's op-ed, "Young Federal Government Workers Should Accept Trump’s Buyout."

February 3, 2025: WTTG Fox5 (Washington, DC) interviewed David McGarry about the impact of tariffs on trade and consumers.

February 4, 2025: The Washington Examiner (Washington, D.C.) quoted TPA in their article, "IRS Direct File: A guide to understanding the free tax preparation service."

February 4, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me about Maryland's levels of state employees and the state budget.

February 4, 2025: WBFF Fox45 (Baltimore, Md.) quoted TPA in their article, "Gov. Wes Moore adds 5K state jobs despite $3B deficit, raising taxpayer concerns."

February 4, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me about the ballooning of Maryland's state budget under Gov. Wes Moore.

February 5, 2025: WCBM-AM (Baltimore, Md.) quoted me in their piece on Maryland's fiscal crisis.

February 5, 2025: The Baltimore Sun (Baltimore, Md.) quoted me in their article, "Maryland has added more than 5,000 state employees during Gov. Wes Moore tenure."

February 5, 2025: Maryland Gazette (Annapolis, Md.) quoted me in their article, "Maryland has added more than 5,000 state employees during Gov. Wes Moore tenure."

February 5, 2025: Inside Sources ran TPA's op-ed, "RFK Jr.’s Ties to Trial Bar Cast Doubt on His Potential Role at HHS."

February 6, 2025: WBOB-AM (Salem Radio Network, Jacksonville, FL) interviewed me on improper payments for Medicare and Medicaid.

February 6, 2025: Inside Sources ran TPA's op-ed, "Tax Hikes Are Looming; Congress Must Save the TCJA."

February 6, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me about Gov. Wes Moore's 'State of the State' address and Maryland's fiscal scenario.

February 6, 2025: WJLA ABC7 (Washington, D.C.) interviewed David McGarry about the federal worker buyout.

February 7, 2025: Filter Mag ran TPA's op-ed, "FDA's Authorization of Zyn Nicotine Pouches a Step in the Right Direction."

February 7, 2025: Fox Business quoted TPA in their article, "Trump's tariffs on Mexico and Canada will increase prices for consumers; experts offer details."

Have a great weekend and GO BIRDS!

Best,

David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 500
Washington, D.C. xxxxxx

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