No Tax on Home Sales Act

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Bill ID: 119/hr/4327
Last Updated: April 9, 2026

Sponsored by

Rep. Greene, Marjorie Taylor [R-GA-14]

ID: G000596

Follow the money

The bill

No Tax on Home Sales Act

HR. 4327, 119th Congress — read as touching Real Estate.

The sponsor

Rep. Greene, Marjorie Taylor [R-GA-14]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$144,650 raised

23 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

85% match to Project 2025

This bill's text tracks the "Department of the Treasury" section, p. 730-732 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

ASSUMING FIRST SPONSORSHIP - Mr. Alford asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 4327, a bill originally introduced by Representative Greene (GA), for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

January 20, 2026

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece from the esteemed members of Congress. The "No Tax on Home Sales Act" - because what's a few billion dollars in lost revenue when you can pander to your constituents and line the pockets of your real estate buddies?

**Main Purpose & Objectives:** This bill is a thinly veiled attempt to curry favor with homeowners, particularly those in affluent areas who are likely to benefit from this tax giveaway. The sponsors claim it's about "helping" people by eliminating the dollar limitations on excluding gains from primary residence sales. Yeah, right. It's really about buying votes and fattening up campaign coffers.

**Key Provisions & Changes to Existing Law:** The bill amends Section 121 of the Internal Revenue Code to eliminate the $250,000 ($500,000 for joint filers) exemption limit on gains from primary residence sales. This means that homeowners can now sell their homes without paying taxes on any profit they make, no matter how large. Because who needs revenue when you can have votes?

**Affected Parties & Stakeholders:** Homeowners, particularly those in high-end markets, will be the primary beneficiaries of this bill. Real estate agents and developers will also see a boost as more people are incentivized to buy and sell homes. And, of course, the politicians who sponsored this bill will reap the rewards of their "generosity" come election time.

**Potential Impact & Implications:** This bill is a fiscal nightmare waiting to happen. By eliminating the exemption limit, the government stands to lose billions in revenue. Who's going to make up for that lost income? You guessed it - the middle class and low-income families who can't afford to play the real estate game. The wealthy will get wealthier, while the rest of us foot the bill.

Diagnosis: This bill is suffering from a severe case of " Politician-itis" - a disease characterized by an insatiable desire for power, votes, and campaign contributions, regardless of the cost to the country. Symptoms include reckless disregard for fiscal responsibility, pandering to special interests, and a complete lack of transparency.

Treatment: A healthy dose of skepticism, a strong stomach, and a willingness to call out these politicians for what they are - self-serving charlatans who care more about their own careers than the well-being of the nation.

Related Topics

Taxation & IRS Regulations
Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Greene, Marjorie Taylor [R-GA-14]

Congress 119 • 2024 Election Cycle

Total Contributions
$144,650
20 donors
PACs
$0
Organizations
$6,950
Committees
$0
Individuals
$137,700

No PAC contributions found

1
PREWETT SERVICES LLC
2 transactions
$6,700
2
THE WETZEL FAMILY TRUST
1 transaction
$250

No committee contributions found

1
KNIGHT, JZ
2 transactions
$13,200
2
CARTER, GARY
2 transactions
$13,200
3
LUKE, DON MR
1 transaction
$11,600
4
RADGOWSKI, STEVEN
1 transaction
$7,300
5
HAHN, SAMUEL
1 transaction
$6,600
6
ELLIOTT, BEVERLY B MS
1 transaction
$6,600
7
MCMANUS, DEBORAH
1 transaction
$6,600
8
FORSYTHE, GERALD R
1 transaction
$6,600
9
KARVELA, ELENI MARIA
1 transaction
$6,600
10
LAMELAS, PETER
1 transaction
$6,600
11
LOMANGINO, ANTHONY
1 transaction
$6,600
12
LOMANGINO, LYNDA
1 transaction
$6,600
13
MACRICOSTAS, ARIS
1 transaction
$6,600
14
MACRICOSTAS, GEORGE
1 transaction
$6,600
15
RIZZUTO, LEE
1 transaction
$6,600
16
FAUST, ANNE R MS
1 transaction
$6,600
17
HINES, ROBERT TODD
1 transaction
$6,600
18
WEASLER, PAUL
1 transaction
$6,600

Cosponsors & Their Campaign Finance

This bill has 7 cosponsors. Below are their top campaign contributors.

Rep. Owens, Burgess [R-UT-4]

ID: O000086

Top Contributors

10

1
UTE INDIAN TRIBE
OrganizationFORT DUCHESNE, UT
$3,300
Nov 12, 2024
2
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$2,000
Sep 30, 2024
3
PALMER, JEFFERY
NONE • RETIRED
IndividualMAPLETON, UT
$13,200
May 29, 2023
4
JENKINS, JAMES W.
RETIRED • RETIRED
IndividualSALT LAKE CITY, UT
$10,000
May 13, 2024
5
HOLSCHER, KELLY
RETIRED • RETIRED
IndividualPACIFIC PALISADES, CA
$6,600
Aug 22, 2024
6
LISONBEE, DAVID
4LIFE RESEARCH • BUSINESS OWNER
IndividualPROVO, UT
$6,600
Mar 19, 2024
7
OVERHOLT, DAVID W. MR.
UNIFIED PURCHASING GROUP • PRESIDENT
IndividualSOUTH JORDAN, UT
$6,600
Apr 3, 2024
8
DAICHENDT, JOE
ACI JET • BUSINESS OWNER
IndividualLADERA RANCH, CA
$6,600
Mar 16, 2023
9
GRIFFIN, KENNETH
CITADEL LLC • FOUNDER CEO
IndividualMIAMI BEACH, FL
$6,600
Apr 10, 2023
10
PALMER, KELLY
NONE • RETIRED
IndividualMAPLETON, UT
$6,600
Jun 13, 2023

Rep. Taylor, David J. [R-OH-2]

ID: T000490

Top Contributors

10

1
POLITICAL EDUCATION PATTERNS LOCAL 18 OF THE INTERNATIONAL UNION OF OPERATING ENGINEERS
OrganizationCLEVELAND, OH
$5,000
Aug 9, 2024
2
ELITE MOVING & TRANSPORT LLC
OrganizationBATAVIA, OH
$700
Mar 1, 2024
3
WOESTE, BILL
BEECHMONT AUTOMOTIVE GROUP • AUTO DEALER
IndividualCINCINNATI, OH
$3,435
Jul 23, 2024
4
SIMS, MICHAEL
RETIRED • RETIRED
IndividualCINCINNATI, OH
$3,435
Oct 9, 2024
5
ATIKIAN, SETRAK
SELF • INSURANCE
IndividualGALENA, OH
$3,300
Oct 18, 2024
6
MELKUMIAN, VIOLETTA
SELF • SELF EMPLOYED
IndividualWESTERVILLE, OH
$3,300
Oct 18, 2024
7
SAFARYAN, ERNA
SELF • DENTIST
IndividualGALENA, OH
$3,300
Oct 18, 2024
8
SAFARYAN, SERGEY
SELF • AUTO DEALER
IndividualGALENA, OH
$3,300
Oct 18, 2024
9
SAFARYAN, TIGRAN
SELF • AUTO DEALER
IndividualCOLUMBUS, OH
$3,300
Oct 18, 2024
10
HOUSER, JOHN
IndividualBATAVIA, OH
$3,300
Dec 13, 2023

Rep. Hamadeh, Abraham J. [R-AZ-8]

ID: H001098

Top Contributors

10

1
CLB PARTNERS
OrganizationGILBERT, AZ
$12,000
Jan 28, 2024
2
ADVANTAGE INSURANCE PLLC
OrganizationPHOENIX, AZ
$3,300
May 7, 2024
3
JARDIN RATZKEN PLLC
OrganizationTEMPE, AZ
$1,000
Feb 26, 2024
4
JARDIN RATZKEN PLLC
OrganizationTEMPE, AZ
$1,000
Mar 26, 2024
5
HAMADEH, WASEEM J
HOH INVESTMENT GROUP • MANAGING MEMBER
IndividualPHOENIX, AZ
$13,200
Dec 29, 2023
6
MANLEY, DWIGHT
SELF-EMPLOYED • INVESTMENTS
IndividualBREA, CA
$13,200
Dec 13, 2023
7
HAYDEN, STEPHEN
ENTREPRENEUR • ENTREPRENEUR
IndividualELLENSBURG, WA
$13,200
Mar 14, 2024
8
PRICE, KAPU
PATRIOT DISPOSAL • SELF-EMPLOYED
IndividualPRESCOTT, AZ
$13,200
Feb 29, 2024
9
HAYDEN, STEPHEN
ENTREPRENEUR • ENTREPRENEUR
IndividualELLENSBURG, WA
$13,200
Mar 14, 2024
10
NOWOCIEN, PIOTR
RETIRED • RETIRED
IndividualPINECREST, FL
$9,900
Mar 16, 2024

Rep. Alford, Mark [R-MO-4]

ID: A000379

Top Contributors

10

1
OTOE-MISSOURIA TRIBE OF INDIANS
OrganizationRED ROCK, OK
$3,300
Jun 21, 2023
2
CM DUBOIS STRATEGIES LLC
OrganizationWEBSTER GROVES, MO
$2,000
Mar 18, 2024
3
WAYPOINT CONSULTING LLC
OrganizationWASHINGTON, DC
$1,100
Dec 13, 2023
4
CHERRY, DERON
UNITED BEVERAGE COMPANY • PRESIDENT
IndividualKANSAS CITY, MO
$3,300
Sep 30, 2024
5
CHERRY, DERON
UNITED BEVERAGE COMPANY • PRESIDENT
IndividualKANSAS CITY, MO
$3,300
Sep 30, 2024
6
REDFORD, STAN
REDFORD CONSTRUCTION • OWNER
IndividualRAYMORE, MO
$3,300
Jul 26, 2024
7
THOMPSON, CRAIG
GOLDEN VALLEY HEALTH • CEO
IndividualCLINTON, MO
$3,300
Sep 7, 2024
8
COOPER, SHANNON
Individual
$3,300
Dec 29, 2023
9
GRAY, CHARLES M
REMAX • BROKER
IndividualCLINTON, MO
$3,300
Dec 29, 2023
10
GUTHRIE, JASON
J&S FARMS • OWNER
Individual
$3,300
Dec 29, 2023

Rep. Harris, Mark [R-NC-8]

ID: H001102

Top Contributors

10

1
CARSTEN, KATHERINE M
NO EMPLOYER • HOMEMAKER
IndividualWAXHAW, NC
$10,000
Feb 14, 2024
2
HORNE, CHRIS
HORNE HEATING AND AIR CONDITIONING • PRINICPAL
IndividualCHARLOTTE, NC
$6,600
Nov 3, 2023
3
DIMICCO, DANIEL
RETIRED • RETIRED
IndividualWAXHAW, NC
$6,600
Jan 17, 2024
4
GREENBLATT, SCOTT
VETERANS GUARDIAN • OWNER
IndividualPINEHURST, NC
$6,600
May 17, 2024
5
HENDLEY, JOHN NANCE
BREWER-HENSLEY OIL COMPANY • EXECUTIVE
IndividualMONROE, NC
$6,600
Jun 7, 2024
6
BUTLER, DONALD R
RETIRED • RETIRED
IndividualMOORESVILLE, NC
$6,600
Sep 13, 2023
7
CHERRY, LINDA
RETIRED • RETIRED
IndividualCHARLOTTE, NC
$6,600
Sep 13, 2023
8
GOLDING, ERNEST G
RETIRED • RETIRED
IndividualADVANCE, NC
$6,600
Sep 13, 2023
9
KIDD, VICKIE
SELF • REAL ESTATE
IndividualMOORESVILLE, NC
$6,600
Sep 12, 2023
10
LAMB, JOHN R
AMERICAN AIRLINES • PILOT
IndividualMOORESVILLE, NC
$6,600
Sep 21, 2023

Rep. Correa, J. Luis [D-CA-46]

ID: C001110

Top Contributors

10

1
AMERICAN ISRAEL PUBLIC AFFAIRS COMMITTEE
COMWASHINGTON, DC
$500
Jun 14, 2024
2
SANTA YENEZ BAND OF MISSION INDIANS
OrganizationSANTA YNEZ, CA
$5,000
Aug 19, 2024
3
SAN MANUEL BAND OF MISSION INDIANS
OrganizationLOS ANGELES, CA
$3,300
Aug 13, 2024
4
AGUA CALIENTE BAND OF CAHUILLA INDIANS
OrganizationPALM SPRINGS, CA
$3,300
Dec 18, 2023
5
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
May 25, 2023
6
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
May 25, 2023
7
HABEMATOLEL POMO OF UPPER LAKE
OrganizationUPPER LAKE, CA
$3,300
Sep 15, 2023
8
SHINGLE SPRINGS BAND MIWOK INDIANS
OrganizationSHINGLE SPRINGS, CA
$2,000
Sep 26, 2024
9
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$2,000
Apr 22, 2024
10
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$2,000
Sep 15, 2023

Rep. Mann, Tracey [R-KS-1]

ID: M000871

Top Contributors

10

1
PRAIRIE BAND POTAWATOMI NATION
OrganizationMAYETTA, KS
$3,300
Jul 18, 2023
2
HABEMATOLEL POMO OF UPPER LAKE
OrganizationUPPER LAKE, CA
$2,500
Sep 9, 2024
3
DEMETREE, MARK
DEMETREE SALT LLC • CEO
IndividualLEAWOOD, KS
$13,200
Nov 3, 2023
4
CORDES, SHANE L.
MIDWEST ATC • CEO
IndividualCHERRY HILLS VILLA, CO
$13,200
Nov 3, 2023
5
FLOYD, MARTIE
SELF-EMPLOYED • FARMER
IndividualJOHNSON, KS
$6,600
Dec 8, 2023
6
HEBENSTREIT, JAMES
BARTLETT AND COMPANY • PRESIDENT
IndividualKANSAS CITY, MO
$6,600
Dec 4, 2023
7
FLOYD, MARTIE
SELF-EMPLOYED • FARMER
IndividualJOHNSON, KS
$6,600
Dec 8, 2023
8
BARTON, TIMOTHY
RETIRED • RETIRED
IndividualAUSTIN, TX
$6,600
Nov 2, 2023
9
HURD, MATTHEW D.
INSCO • PRESIDENT
IndividualWELLSVILLE, KS
$6,600
Dec 11, 2023
10
OLSEN, LINDSAY
MORTGAGE INVESTMENT TRUST CORPORATION • PRESIDENT
IndividualPRAIRIE VILLAGE, KS
$6,600
Mar 16, 2023

Donor Network - Rep. Greene, Marjorie Taylor [R-GA-14]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 66 nodes and 38 connections (50 secondary connections hidden)

Total contributions: $218,185

Top Donors - Rep. Greene, Marjorie Taylor [R-GA-14]

Showing top 20 donors by contribution amount

2 Orgs18 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 1 helped.

  • +Real Estateconfidence 0.95

    Section 2 eliminates dollar limitations on the exclusion of gain from sales of principal residences under IRC §121, providing a tax benefit to homeowners and thereby benefiting the real estate industry by potentially increasing home sales and market activity.

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Department of the Treasury

Strong
Vector: 60%
Pages: 730-732AI Enhanced

AI Analysis:

"HR 4327 aligns with Project 2025's goal of reducing taxes on investment and capital by eliminating capital gains taxation on home sales, which treats housing as an investment asset and removes a barrier to wealth accumulation through home equity."

Key themes:tax reliefcapital gainsinvestment incentiveshomeownershipwealth building

— 697 — Department of the Treasury time for any purpose. This would allow the vast majority of American families to save and invest without facing a punitive double layer of taxation. Entrepreneurship. To encourage entrepreneurship, the business loss limita- tion should be increased to at least $500,000. Businesses should also be allowed to fully carry forward net operating losses. Extra layers of taxes on investment and capital should also be eliminated or reduced. The net investment income surtax and the base erosion anti-abuse tax should be eliminated. The estate and gift tax should be reduced to no higher than 20 percent, and the 2017 tax bill’s temporary increase in the exemption amount from $5.5 million to $12.9 million (adjusted for inflation) should be made permanent.21 The tax on global intangible low-taxed income should be reduced to no higher than 12.5 percent, with the 20 percent haircut on related foreign tax credits reduced or eliminated.22 All non-business tax deductions and exemptions that were temporarily sus- pended by the 2017 tax bill should be permanently repealed, including the bicycle commuting expense exclusion, non-military moving expense deductions, and the miscellaneous itemized deductions.23 The individual state and local tax deduction, which was temporarily capped at $10,000, should be fully repealed. Deductions related to educational expenses should be repealed. Special business tax pref- erences, such as a special deduction for energy-efficient commercial building properties, should be eliminated.24 Wages vs. Benefits. The current tax code has a strong bias that incentivizes businesses to offer employees more generous benefits and lower wages. This limits the freedom of workers and their families to spend their compensation as they see fit—and it can trap workers in their current jobs due to the jobs’ benefit pack- ages. Wage income is taxed under the individual income tax and under the payroll tax. However, most forms of non-wage benefits are wholly exempt from both of these taxes. To reduce this tax bias against wages (as opposed to employee benefits), the next Administration should set a meaningful cap (no higher than $12,000 per year per full-time equivalent employee—and preferably lower) on untaxed benefits that employers can claim as deductions. Employee benefit expenses other than tax-deferred retirement account contributions should count toward the limita- tion, whether offered to specific employees or whether the costs relate to a shared benefit like building gym facilities for employees.25 Tax-deferred retirement con- tributions by employers should not count toward this limitation insofar as they are fully taxable upon distribution. Only a percentage of Health Savings Accounts (HSA) contributions (which are not taxed upon withdrawal) should count toward the limitation.26 The limitation on benefit deductions should not be indexed to increase with inflation.27 Employers should also be denied deductions for health insurance and other benefits provided to employee dependents if the dependents are aged 23 or older.

Department of the Treasury

Strong
Vector: 57%
Pages: 730-732AI Enhanced

AI Analysis:

"HR 4327 aligns with Project 2025's goal of reducing taxes on capital and investment by eliminating capital gains taxes on home sales, which supports savings, investment, and reduces tax complexity—key themes in the Treasury section of Project 2025."

Key themes:tax relief for homeownerselimination of capital gainsreduction of tax complexityencouragement of savings and investment

— 697 — Department of the Treasury time for any purpose. This would allow the vast majority of American families to save and invest without facing a punitive double layer of taxation. Entrepreneurship. To encourage entrepreneurship, the business loss limita- tion should be increased to at least $500,000. Businesses should also be allowed to fully carry forward net operating losses. Extra layers of taxes on investment and capital should also be eliminated or reduced. The net investment income surtax and the base erosion anti-abuse tax should be eliminated. The estate and gift tax should be reduced to no higher than 20 percent, and the 2017 tax bill’s temporary increase in the exemption amount from $5.5 million to $12.9 million (adjusted for inflation) should be made permanent.21 The tax on global intangible low-taxed income should be reduced to no higher than 12.5 percent, with the 20 percent haircut on related foreign tax credits reduced or eliminated.22 All non-business tax deductions and exemptions that were temporarily sus- pended by the 2017 tax bill should be permanently repealed, including the bicycle commuting expense exclusion, non-military moving expense deductions, and the miscellaneous itemized deductions.23 The individual state and local tax deduction, which was temporarily capped at $10,000, should be fully repealed. Deductions related to educational expenses should be repealed. Special business tax pref- erences, such as a special deduction for energy-efficient commercial building properties, should be eliminated.24 Wages vs. Benefits. The current tax code has a strong bias that incentivizes businesses to offer employees more generous benefits and lower wages. This limits the freedom of workers and their families to spend their compensation as they see fit—and it can trap workers in their current jobs due to the jobs’ benefit pack- ages. Wage income is taxed under the individual income tax and under the payroll tax. However, most forms of non-wage benefits are wholly exempt from both of these taxes. To reduce this tax bias against wages (as opposed to employee benefits), the next Administration should set a meaningful cap (no higher than $12,000 per year per full-time equivalent employee—and preferably lower) on untaxed benefits that employers can claim as deductions. Employee benefit expenses other than tax-deferred retirement account contributions should count toward the limita- tion, whether offered to specific employees or whether the costs relate to a shared benefit like building gym facilities for employees.25 Tax-deferred retirement con- tributions by employers should not count toward this limitation insofar as they are fully taxable upon distribution. Only a percentage of Health Savings Accounts (HSA) contributions (which are not taxed upon withdrawal) should count toward the limitation.26 The limitation on benefit deductions should not be indexed to increase with inflation.27 Employers should also be denied deductions for health insurance and other benefits provided to employee dependents if the dependents are aged 23 or older. — 698 — Mandate for Leadership: The Conservative Promise Fundamental Tax Reform. Achieving fundamental tax reform offers the prospect of a dramatic improvement in American living standards and an equally dramatic reduction in tax compliance costs. Lobbyists, lawyers, benefit consul- tants, accountants, and tax preparers would see their incomes decline, however. The federal income tax system heavily taxes capital and corporate income and discourages work, savings, and investment. The public finance literature is clear that a consumption tax would minimize government’s distortion of private economic decisions and thus be the least eco- nomically harmful way to raise federal tax revenues.28 There are several forms that a consumption tax could take, including a national sales tax, a business transfer tax, a Hall–Rabushka flat tax,29 or a cash flow tax.30 Supermajority to Raise Taxes. Treasury should support legislation instituting a three-fifths vote threshold in the U.S. House and the Senate to raise income or corporate tax rates to create a wall of protection for the new rate structure. Many states have implemented such a supermajority vote requirement. Tax Competition. Tax competition between states and countries is a positive force for liberty and limited government.31 The Biden Administration, under the direction of Treasury Secretary Janet Yellen, has pushed for a global minimum corporate tax that would increase taxation and the size of government in the U.S. and around the world. This attempt to “harmonize” global tax rates is an attempt to create a global tax cartel to quash tax competition and to increase the tax burden globally. The U.S. should not outsource its tax policy to international organizations. Organization for Economic Co-operation and Development. The Organi- zation for Economic Co-operation and Development (OECD), in conjunction with the European Union, has long tried to end financial privacy and impose regulations on countries with low (or no) income taxes. In fact, on tax, environmental, corpo- rate governance and employment issues, the OECD has become little more than a taxpayer-funded left-wing think tank and lobbying organization.32 The United States provides about one-fifth of OECD’s funding.33 The U.S. should end its finan- cial support and withdraw from the OECD. TAX ADMINISTRATION The Internal Revenue Service is a poorly managed, utterly unresponsive and increasingly politicized agency, and has been for at least two decades. It is time for meaningful reform to improve the efficiency and fairness of tax administration, better protect taxpayer rights, and achieve greater transparency and accountability. A substantial number of the problems attributed to the IRS are actually a function of congressional action that has made the Internal Revenue Code ridiculously complex, imposed tremendous administrative burdens on both the public and the IRS, and given massive non-tax missions to the IRS. But the culture, administrative practices, and management at the IRS need to change.

Department of the Treasury

Moderate
Vector: 59%
Pages: 745-747AI Enhanced

AI Analysis:

"HR 4327 aligns with Project 2025's broader tax reform goals by reducing tax burdens on individuals and simplifying the tax code, particularly through eliminating limitations on the home sale gain exclusion. While not explicitly mentioned in the Treasury section, the bill supports pro-growth, tax-cutting principles emphasized in Project 2025, such as reducing complexity and increasing disposable income for taxpayers."

Key themes:tax relieftax simplificationpro-growth tax policyindividual tax reduction

— 712 — Mandate for Leadership: The Conservative Promise 17. For a detailed discussion, see David R. Burton, “Tax Reform: Eliminating the Double Taxation of Corporate Income,” Heritage Foundation Backgrounder No. 3216, May 18, 2017, https://www.heritage.org/sites/default/ files/2017-05/BG3216.pdf. 18. One hundred dollars in corporate income less an 18 percent tax leaves $82. A 15 percent capital gains tax or qualified dividends tax is $12.30, which leaves $69.70, for an effective marginal tax rate of 30 percent. This, of course, abstracts away from certain timing issues. 19. Inflation Reduction Act, Public Law 117–169. 20. Ibid. 21. Tax Cuts and Jobs Act, Public Law 115–97, § 11061, amending Internal Revenue Code § 2010(c). The amounts before inflation adjustments are $5 million and $10 million, respectively. See also Internal Revenue Service, “What’s New: Estate and Gift Tax, Basic Exclusion Amount for Year of Death,” https://www.irs.gov/businesses/ small-businesses-self-employed/whats-new-estate-and-gift-tax (accessed March 22, 2023). 22. The effective tax rate on foreign-derived intangible income should remain equal to the tax rate on global intangible low-taxed income. 23. For miscellaneous itemized deductions, see Internal Revenue Code (26 U.S. Code § 67). Business deductions that were suspended by the 2017 tax bill (other than those related to depreciation) should also be extended. This includes the local lodging expense deduction and entertainment expense deductions. The 2017 tax bill’s modifications to the deduction for personal casualty and theft losses should be made permanent. The Pease limitation on itemized deductions should be permanently eliminated. 24. Bonus depreciation provisions applied to specific industries should be maintained. 25. Employer-provided childcare expenses should also count toward the limitation on benefit deductions. 26. HSAs are flexible and portable, and they help contain costs by giving health care consumers skin in the game. 27. For additional revenue to fund pro-growth tax cuts, lawmakers could gradually phase down the limitation on benefit deductions. 28. Early versions of the 2017 tax bill envisioned reforming the corporate income tax into a destination-based cash flow tax, a form of consumption tax. A tax system that taxes labor and capital-factor incomes equally— and only once—results in higher output and higher incomes. Usually, in the modern public finance literature, this is called a consumption tax. On the economic superiority of consumptions taxes, see N. Gregory Mankiw et al., “Optimal Taxation in Theory and Practice,” Journal of Economic Perspectives, Vol. 23, No. 4 (2009), pp. 147–174, https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.23.4.147 (accessed March 19, 2023); Alan J. Auerbach, “The Choice Between Income and Consumption Taxes: A Primer,” NBER Working Paper No. 12307, June 2006, https://www.nber.org/system/files/working_papers/w12307/w12307.pdf (accessed March 19, 2023); and Charles E. Walker and Mark A. Bloom eld, eds., The Consumption Tax: A Better Alternative? (Cambridge, MA: Harper and Row, Ballinger, 1987). 29. Hoover Institution, “Simplifying the Tax System: The History of the Flat Tax,” March 1, 2019, https://www. hoover.org/research/simplifying-tax-system-history-flat-tax (accessed March 20, 2023). 30. David R. Burton, “Four Conservative Tax Plans with Equivalent Economic Results,” Heritage Foundation Backgrounder No. 2978, December 7, 2022, https://www.heritage.org/taxes/report/four-conservative-tax- plans-equivalent-economic-results. Consumption tax plans generally include carveouts that exempt very low-income Americans from federal tax liability. 31. Daniel J. Mitchell and Chris Edwards, Global Tax Revolution: The Rise of Tax Competition and the Battle to Defend It (Washington, DC: Cato Institute, 2008); Preston Brashers, “Like Constitutional Checks and Balances, Tax Competition Is a Bulwark Against Growth of Government,” March 17, 2022, https://www.heritage.org/ taxes/commentary/constitutional-checks-and-balances-tax-competition-bulwark-against-growth (accessed March 19, 2023). 32. James M. Robers et al., “Organization for Economic Co-operation and Development (OECD): What America Should Do,” Heritage Foundation Backgrounder No. 3593, March 16, 2021, https://www.heritage.org/ sites/default/files/2021-03/BG3593.pdf; Preston Brashers. “The OECD Crusade To Raise Taxes,” Heritage Foundation Commentary, February 4, 2022, https://www.heritage.org/taxes/commentary/the-oecd-crusade- raise-taxes; David Burton, “How the OECD is Promoting More Identity Theft, Crime, Industrial Espionage, and Suppression of Political Dissidents,” July 15, 2016, Heritage Foundation Commentary, https://www.heritage. org/taxes/commentary/how-the-oecd-promoting-more-identity-theft-crime-industrial-espionage-and; — 713 — Department of the Treasury David R. Burton “Towards a Global Tax Cartel?” Policy, Vol. 18, No. 4 (Summer 2002–2003), Center for Independent Studies (Australia), https://www.cis.org.au/wp-content/uploads/2015/04/images/stories/policy- magazine/2002-summer/2002-18-4-david-r-burton.pdf (accessed March 19, 2023). 33. Roberts et al., “Organization for Economic Co-operation and Development (OECD).” 34. See Inflation Reduction Act, § 10301. See also Preston Brashers, “IRS and Allies Downplay 87,000-Person Hiring Binge,” The Daily Signal, August 12, 2022, https://www.dailysignal.com/2022/08/12/the-irs-and-its- allies-downplay-87000-person-hiring-binge/ (accessed March 19, 2023). 35. U.S. Department of the Treasury, General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals, May 2021, pp. 88–89, https://home.treasury.gov/system/files/131/General-Explanations-FY2022.pdf (accessed March 19. 2023). 36. See U.S. Department of the Treasury, Fiscal Year 2022–2026 Strategic Plan. 37. U.S. House of Representatives, Committee on Oversight and Reform, Policy and Supporting Positions, December 2020 (the “plumb book”), p. 127 https://www.govinfo.gov/content/pkg/GPO-PLUMBOOK-2020/ pdf/GPO-PLUMBOOK-2020.pdf (accessed March 19, 2023). 38. Internal Revenue Service, “Organization and Top Officials,” https://www.irs.gov/pub/newsroom/marketing/ internet/irs-organization-chart.pdf (accessed March 19, 2023). See also Internal Revenue Code (26 U.S. Code § 7803(a)–(b)). 39. For a summary of various GAO reports on various IRS IT problems, see Vijay A. D’Souza, “Information Technology: IRS Needs to Address Operational Challenges and Opportunities to Improve Management,” testimony before the Subcommittee on Government Operations, Committee on Oversight and Reform, U.S. House of Representatives, October 7, 2020, GAO–21–178T, https://www.gao.gov/assets/gao-21-178t. pdf (accessed March 19, 2023). Charles O. Rossotti was named IRS Commissioner by President Bill Clinton primarily so that Rossotti could address widely acknowledged IT issues. He made some improvements between 1997 and 2002, but despite large investments, he did not really resolve the IT problems at the IRS. Since that time, the problems have worsened. 40. D’Souza, “Information Technology,” figure 1, p. 5. 41. Internal Revenue Service, IRS Integrated Modernization Business Plan, April 2019, https://www.irs.gov/pub/ irs-pdf/p5336.pdf (accessed March 20, 2023). 42. See, for example, the Omnibus Taxpayers’ Bill of Rights, Public Law 100–647, Subtitle J of Title VI of the Technical and Miscellaneous Revenue Act of 1988; Taxpayer Bill of Rights 2, Public Law 104–168; IRS Restructuring and Reform Act of 1998, Public Law 105–206, Title III; Consolidated Appropriations Act, Public Law 114–113, Title IV, Subtitle A (adding Internal Revenue Code § 7803(a)(3) and other changes); and Taxpayer First Act, Public Law 116–25, Title I. 43. For a list of 68 proposed reforms, see National Taxpayer Advocate, 2022 Purple Book: Compilation of Legislative Recommendations to Strengthen Taxpayer Rights and Improve Tax Administration, December 31, 2021, https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2022/01/ARC21_PurpleBook.pdf (accessed March 19, 2023). Most, though not all, of these proposals have merit. Regarding penalty reform, see Jeremiah Coder, “Achieving Meaningful Civil Tax Penalty Reform and Making It Stick,” Akron Tax Journal, Vol. 27 (2012), https://ideaexchange.uakron.edu/cgi/viewcontent.cgi?article=1153&context=akrontaxjournal (accessed March 19, 2023). 44. Internal Revenue Service, 2023 Congressional Budget Justification & Annual Performance Report and Plan, Rev. 3–2022, https://home.treasury.gov/system/files/266/Internal-Revenue-Service-FY-2023-CJ.pdf (accessed March 19, 2023). 45. Internal Revenue Service, 2021 IRS Data Book: October 1, 2020 to September 30, 2021, table 11, p. 26, https:// www.irs.gov/pub/irs-pdf/p55b.pdf (accessed March 19, 2023). 46. Ibid., 2021 IRS Data Book, table 2, p. 4. 47. Scott A. Hodge, “The Compliance Costs of IRS Regulations, Tax Foundation Fiscal Fact No. 512, June 2016 https://files.taxfoundation.org/legacy/docs/TaxFoundation_FF512.pdf (accessed March 19, 2023). 48. Organization for Economic Cooperation, The Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol, https://read.oecd-ilibrary.org/taxation/the-multilateral- convention-on-mutual-administrative-assistance-in-tax-matters_9789264115606-en#page1 (accessed March 20, 2023).

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Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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