Courts weigh Trump’s Section 122 tariffs. A new legal fight over President Trump’s replacement tariffs is taking shape, and this overview of the cases explains why the dispute may be more complicated than the earlier battle over IEEPA. Challengers argue that Section 122 does not authorize the president’s 10 percent tariffs under current circumstances, especially given questions about what the law means by a “large and serious balance-of-payments deficit” and whether Trump’s many carve-outs square with a statute that calls for broad and uniform application. The Court of International Trade is set to hear arguments on April 10, but because Section 122 tariffs last only 150 days, the policy could expire before courts issue a final ruling.
Tax refunds may not deliver expected boost. A new look at this filing season suggests that larger refunds tied to last year’s tax law may give the economy less of a lift than Republicans expected. The law’s new tax breaks were designed to show up in refunds this spring, but the average refund through March 6 was $3,676, about 11 percent higher than a year earlier and still below some more optimistic forecasts. At the same time, rising oil prices linked to the conflict with Iran could push up costs for households and businesses, potentially offsetting part of whatever short-term boost those refunds provide.
IRS says operations continue despite vacancy at the top. The IRS said in a new agency update that Treasury Secretary Scott Bessent is no longer serving as acting commissioner because his authority under the Federal Vacancies Reform Act has expired. The agency added that Treasury still retains responsibility for functions tied to vacant offices that are not filled on an acting basis, and that IRS operations are continuing without interruption. Day-to-day operations, the statement said, are being led by Chief Executive Officer Frank J. Bisignano, who reports directly to the secretary.
Accelerated depreciation could spur rental housing. TPC’s Thomas Brosy and Center for American Progress’ Corey Husak argue that letting developers deduct more of their multifamily construction costs up front could lower the cost of building and expand rental housing supply. The authors estimate that full expensing could generate up to a million additional units over 10 years, though it would reduce federal revenue by about $210 billion over that period. Expensing subject to a $150,000 per unit cap would generate a somewhat smaller number of units, at a substantially lower revenue cost. They note that while accelerated depreciation helped fuel a multifamily construction boom and related tax sheltering in the 1980s, today’s lower tax rates, tighter loss-limitation rules, and severe housing shortage make the current environment very different. Sen. Lisa Blunt Rochester (D-DE) has introduced the Rental Housing Investment Act which would allow builders to immediately deduct up to $150,000 per unit in construction costs.
Cleveland launches a local tax filing push. The City of Cleveland has rolled out a new taxpayer education effort called FILE, short for Filing Income Locally & Efficiently, to help residents better understand their municipal filing obligations. Cleveland officials say the initiative grew out of community feedback showing that many people were unaware of local filing rules. In most cases, people who live in Cleveland, work there, run a business there, or earn income from Cleveland rental property must file a 2025 Individual City Tax Form, while those with a filing obligation but no municipal taxable income generally must submit a 2025 Exemption Certificate.
April 9: Lubick Symposium will honor TPC cofounder Len Burman. TPC will honor cofounder and longtime director Len Burman at this year’s Donald C. Lubick Symposium, which will focus on three subjects that defined much of Burman's work: support for families with children, the taxation of high-income households, and the policy choices needed to avoid a fiscal crisis. The program will feature speakers from government, academia, and research organizations, including panels on families in the tax code, capital income, and the federal budget outlook. Register here for the hybrid event.
Subscribe to the Tax Policy Center’s Daily Deduction for weekday morning tax news and research. For more from TPC: Visit the Briefing Book (tax issue explainers), Fiscal Facts (quick primers), and TaxVox (researcher commentary). Track tariff developments and analysis with TPC’s Tariff Tracker. Email Renu Zaretsky with tips on research or tax news.
