The 119^th Congress is in full swing. Members of Congress have an opportunity to truly change the governing and policy paradigm in Washington, D.C. And, with a new administration taking charge and corresponding vocal support for promoting government efficiency, incoming members of Congress can lead the effort to slash waste, fraud, and abuse within the federal government. The American people have felt the burden of runaway inflation. The federal government’s rampant spending has devalued the worth of every American’s paycheck, amounting to another tax on their earnings. Further, the regulatory state has become so vast and wide-ranging that agencies no longer respect their statutory limits. Policymaking has become a free-for-all, where bureaucrats brazenly constrict key sectors of the American economy. This limits the growth potential of American businesses. The 119^th Congress is uniquely poised to address these key problems – along with many others. The 2025 Roadmap to Fiscal
Sanity offers a blueprint for reform on 19 policy areas that will surely come before the legislative branch over the next two years. To read the full report, click here ([link removed]) . Below are some highlights.

Energy

At every stage of energy production, the federal government has involved itself in regulating and funding production and distribution. These subsidies are distorting U.S. energy markets, pushing private companies to invest in government-favored sources of energy, instead of inexpensive and reliable energy for consumers. Much of this push is towards “green” energy sources and technologies, such as wind and solar farms and electric vehicles (EVs).

The sheer scale of subsidization is staggering. The Congressional Budget Office (CBO) projected the Inflation Reduction Act (IRA)’s green subsidies to cost $391 billion over a decade. In 2023, Goldman Sachs estimated that the cost would likely approach $1.2 trillion. In 2024, the CBO said that the Inflation Reduction Act’s (IRA’s) green subsidies would likely run $428 billion over projected costs, of which $224 billion in overruns would come from EV subsidies alone. All of this is on top of a 2023 report from the Texas Public Policy Foundation, which found that “nearly $22 billion in federal and state subsidies and regulatory credits suppressed the retail price of EVs in 2021 by an average of almost $50,000” – without factoring in the IRA’s subsidies. The federal government’s subsidies reach all levels of energy production and use. As of September 2024, the former administration had announced “more than $120 billion in investments in battery and critical mineral supply chains.” It has giv
en healthy subsidies for EV battery and solar panel manufacturers; it gives a $7,500 tax credit to Americans who buy domestically produced EVs; it put $7.5 billion towards EV chargers (but managed to build only eight, as of May 2024); and of course, it has lent massive support to the roll out of solar and wind energy — just to name a few.

A critical area not addressed by the IRA is permitting reform, specifically regarding environmental impact statements (EIS). Established under the National Environmental Policy Act of 1969 (NEPA) with the intent of reviewing the environmental impacts of proposed infrastructure and energy projects, EIS have become one of the most stringent barriers to progress in both sectors. The Council on Environmental Quality found in 2020 that the average EIS takes 4.5 years to work its way through regulatory process and estimates suggest that the statements cost U.S. taxpayers $1 billion per year.

Recommendations

* Undo the damage done by out-of-control, market-distorting subsidies by conducting a thorough review of energy tax credits for elimination.
* Congress also must review regulations that make energy production more difficult and costlier. NEPA slows energy projects of all kinds – with no discernable public policy benefits – and is in desperate need of reform.
* Allow other energy sources – like nuclear and liquified natural gas – to compete on a level playing field.


Financial Services

In recent years, financial-services regulators increasingly drifted from their role as custodians of orderly, productive, and fraud-free financial markets. Instead, they have become distracted with other ideological concerns or sought to interfere or micromanage financial institutions. While oversight is certainly necessary, continued technocratic regulation in this industry will harm businesses, consumers, and the American economy as a whole.

The 118th Congress considered the Credit Card Competition Act (CCCA), a bill that would force covered credit-card-issuing financial institutions to participate in multiple credit card networks. It would also impose limits on interchange fees. In short, this fake and artificially generated competition would function as a price control on credit card swipe fees. This would reduce the number of cardholder perks and degrade cybersecurity and privacy protections.

In 2024, the Securities and Exchange Commission (SEC) ventured into new territory as a climate regulator, finalizing a climate-disclosure rule that required financial institutions to provide information related to their carbon emissions. The agency said that such disclosures are financially material, a claim unsupported by evidence. Moreover, the SEC already requires businesses to disclose financially material information, meaning that additional regulation singling out carbon emissions is driven by environmentalist ideology, not sound financial policy. This “mission creep” of environmental and social governance (ESG) criteria into the agency will bleed billions out of the economy. Further, the SEC is not chartered to be an environmental regulator. Keeping these agencies within their proper scope will make the federal government more efficient.

Another agency guilty of mission creep is the Consumer Financial Protection Bureau (CFPB). The CFPB has exceeded its statutory authority in a number of ways, including everything from ill-conceived caps on late fees to regulating videogame purchases. The CFPB’s attacks on short-term lending also threaten low-income borrowers’ access to capital.

Recommendations

* Congress should outright reject counterproductive legislation such as the CCCA and emphasize real, not artificial, competition.
* In line with recent Supreme Court precedent related to major questions doctrine, Congress should take proactive steps to clarify that agencies such as the SEC that advance dubious statutory interpretations to further ideological causes are overstepping their bounds.
* Congress need not ban funds managers outright from investing in specific kinds of causes (e.g., a ban on investing in all clean-energy projects). Instead, it can make clear that fiduciaries bound by federal law must in all cases ensure that investments make optimal profits and fulfill legal obligations to investors.


Tax Reform

A healthy tax system is the bedrock of a healthy economy. The United States tax code is ripe for reform as policymakers evaluate the results of one the most comprehensive tax reforms in recent years. This new Congress has the duty of defining the nation’s fiscal and economic future, and it is paramount that legislators get it right. After its landmark passage in 2017, the TCJA lowered taxes for families, incentivized investment, and cut operating costs for businesses. Unfortunately, some of the key provisions of the law have already expired or are on track to expire soon. This opens the possibility for policymakers to build on the success of the TCJA and create a simpler, cost-effective and competitive tax code. As the U.S. faces increased competition from foreign economies, Congress’ decisions will likely determine America’s future status as the world’s leading economy. As most of the reforms introduced by the TCJA continue to phase out in 2025, lawmakers are bound to debate whether
expansion is warranted. However, there is abundant evidence that the tax code simplification and cost reduction introduced by the TCJA was a resounding success. Studies indicate that around 80 percent of all filers have seen a lower tax liability than they otherwise would have had the TCJA not been enacted. The law has also reduced the tax compliance burden by about 2 billion hours, allowing businesses to use that time and money for more productive uses than preparing and filing taxes. The key to the success of the TCJA was its two-pronged approach of introducing a simpler, flatter tax code for individuals and offering investment-inducing incentives for businesses. For example, the TCJA allows businesses to take 100 percent bonus depreciation for equipment and machinery. The law also permits businesses to deduct interest expenses totaling 30 percent of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It also allowed businesses to expense research and development
(R&D) investments; a provision responsible for a $2 trillion investment surge.

For individuals, the TCJA resulted in a simpler tax code by nearly doubling the standard deduction while placing various caps on itemized deductions. Tax preparation was vastly simplified, as most of the time the new increased standard deduction would often outperform the capped itemized deductions in terms of tax savings. However, most of these key provisions have expired or are set to expire soon. The bonus depreciation provision has decreased in each subsequent year, falling to 60 percent in 2024 and 40 percent in 2025, before phasing out completely in 2026. Interest deductions are now limited to deducting interest expenses up to 30 percent of Earnings Before Interest and Taxes, instead of EBITDA, significantly limiting companies’ ability to write-off borrowing costs. The R&D expensifying provision has already been sunset, and the expanded standard deduction is also set to expire in 2026.

Tax policy does not exist in a vacuum. Policymakers need to always consider the global context America is facing when defining its tax regime. America is facing increasing pressure from foreign adversaries that could erode its position as global economic leader. The tax code needs to support, rather than hamper, the ability of the U.S. economy to outcompete these foreign competitors. Unfortunately, the current approach to corporate taxation does precisely the opposite. Not only are most of the investment-inducing provisions on track to expire, the U.S.’s effective corporate tax rate is higher that its peers. Proposals by the former Biden administration and Democratic lawmakers would further increase that rate up to 28 percent. They would also establish a minimum effective tax rate of 21 percent for companies valued at $1 billion or more, amongst other rate increases on stock buybacks and payroll taxes. Increasing the corporate tax rate does little more than punish consumers and workers.
Corporations are not simply passive price-takers that will accept this tax pressure without passing along these higher costs. Unsustainably high corporate tax rates pressure businesses to close shop or move to more tax-friendly jurisdictions, decreasing overall revenues. And in a context where emerging economies are taking proactive steps to lure these businesses in, America faces a higher risk of losing these economic powerhouses that drive job creation and boost income for millions of Americans.

Recommendations
* Extend the TCJA and try to codify as many of its provisions as possible.
* Refrain from passing additional tax deductions for individuals, and repeal existing ones, such as the State and Local Tax deduction.

BLOGS:

Monday: Changing the Taxation on Carried Interest Stands to Impact Business and Investment ([link removed])

Tuesday: Say No To Government Healthcare Price-Fixing: Reject Colorado’s HB 25-1174 ([link removed])

Wednesday: Taxpayers Protection Alliance Releases 2025 Roadmap to Fiscal Sanity ([link removed])

Friday: Berkeley’s Outrageous Attack on Pricing Tools in Housing ([link removed])


Media:

March 14, 2025: Catalyst ran TPA's op-ed, "Trump’s Appointees Advocate for Cautious Approach to BEAD Program."

March 14, 2025: The Las Vegas Review Journal (Las Vegas, Nevada) ran TPA's op-ed, "Parents, not the government, should raise children."

March 14, 2025: The Sunday Gazette-Mail (Charleston, W.V.) ran TPA's op-ed, "The FDA is unprepared for coming changes."

March 14, 2025: Florida Daily (Florida) ran TPA's op-ed, "Reintroducing Cost-of-Living Adjustments in Florida Will Make Taxpayers Foot the Bill."

March 17, 2025: Inside Sources ran TPA's op-ed, "Parents, Not the Government, Should Raise Children."

March 17, 2025: WBFF FOX45 Baltimore (Baltimore, Md.) interviewed me for their segment on postal reform and DOGE.

March 17, 2025: KSSZ-FM (Columbia, Md.) interviewed TPA Research Director David McGarry for their segment on Medicare Advantage.

March 18, 2025: Daily Pouch ran TPA's op-ed, "The Health Harming Snus Ban Deception Continues."

March 19, 2025: I appeared on 55KRC Radio (Cincinnati, Ohio) to talk about postal reform.

March 20, 2025: Townhall ran TPA's op-ed, "Lawmakers Must Steer Clear of Truck Policy Pitfalls and Potholes."

March 20, 2025: WBFF FOX45 Baltimore (Baltimore, Md.) interviewed me in their piece on the potential of taxes and fees balancing Maryland's budget.

March 20, 2025: American Talk mentioned TPA in their article, "Conservative groups urge FCC to end '60 Minutes' Harris interview probe-- and get rejected."

March 20, 2025: WBFF FOX45 Baltimore (Baltimore, Md.) interviewed me for their segment on new potential taxes in Maryland.

March 20, 2025: USA Times mentioned TPA in their article, "Conservative groups urge FCC to end '60 Minutes' Harris interview probe-- and get rejected."

March 20, 2025: Reuters mentioned TPA in their article, "Conservative groups urge FCC to end probe into '60 Minutes' Harris interview."

March 20, 2025: Yahoo!News mentioned TPA in their article, "Conservative groups urge FCC to end probe into '60 Minutes' Harris interview."

March 20, 2025: US News & World Report mentioned TPA in their article, "Conservative Groups Urge FCC to End Probe Into '60 Minutes' Harris Interview."

March 20, 2025: The Baltimore Sun (Baltimore, Md.) quoted me in an op-ed, "In Annapolis, no such thing as too much spending."

March 20, 2025: WBFF FOX45 Baltimore (Baltimore, Md.) quoted me in their article, "Maryland senators back Mosby's appointment amid concerns over unpaid bills and debts."

March 20, 2025: WBFF FOX45 Baltimore (Baltimore, Md.) quoted me in their segment on new commissioners for Maryland's gaming commission.

March 20, 2025: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about the Postal Service and education.

March 21, 2025: New York Sun (New York, NY) mentioned TPA in their article, "Pro-Trump Groups Urge FCC To Drop CBS Kamala Harris Probe Warning the ‘Future of Conservative Media’ Is at Stake."

March 21, 2025: KNBS-FM (St. Louis, Mo.) interviewed me to talk about wasteful spending and TPA's new 'Roadmap to Fiscal Sanity.'

March 21, 2025: WBFF FOX45 Baltimore (Baltimore, Md.) interviewed me for their piece on the new members of Maryland's lottery and gaming control commission.

Have a great weekend!

Best,

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

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