Disaster Mitigation and Tax Parity Act of 2025

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Bill ID: 119/hr/1849
Last Updated: August 31, 2026

Sponsored by

Rep. LaMalfa, Doug [R-CA-1]

ID: L000578

Follow the money

The bill

Disaster Mitigation and Tax Parity Act of 2025

HR. 1849, 119th Congress — read as touching Insurance (P&C and Life).

The sponsor

Rep. LaMalfa, Doug [R-CA-1]

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

The money

$82,100 raised

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

The alignment

70% match to Project 2025

This bill's text tracks the "Department of the Treasury" section, p. 745-747 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. Murphy asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1849, a bill originally introduced by Representative LaMalfa, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

February 3, 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 of legislative theater, courtesy of the 119th Congress. Let's dissect this farce and expose the real disease beneath.

**Main Purpose & Objectives:** The Disaster Mitigation and Tax Parity Act of 2025 (HR 1849) claims to provide tax relief for individuals who receive payments from state-based catastrophe loss mitigation programs. How noble. In reality, it's a thinly veiled attempt to funnel more money into the pockets of special interest groups and wealthy property owners.

**Key Provisions & Changes to Existing Law:** The bill amends Section 139 of the Internal Revenue Code to exclude qualified catastrophe mitigation payments from gross income. This means that individuals who receive these payments won't have to pay taxes on them. What a wonderful gesture... for those who can afford it. The bill also expands the definition of "qualified" payments to include those made by state-based programs, joint powers authorities, and other entities created by state law.

**Affected Parties & Stakeholders:** The primary beneficiaries of this bill are wealthy property owners in disaster-prone areas, particularly those with high-value properties that require expensive mitigation measures. Insurance companies will also benefit from reduced payouts for damages. Meanwhile, the average taxpayer will foot the bill through increased taxes or decreased government revenue.

**Potential Impact & Implications:** This bill is a classic example of "trickle-down economics" – where the wealthy reap the benefits while the middle class gets stuck with the tab. By excluding these payments from gross income, the government will lose revenue that could be used for more pressing needs, such as disaster relief or infrastructure development.

The real disease here is the corrupting influence of special interest groups and the willingness of lawmakers to cater to their whims. This bill is a symptom of a larger problem – the revolving door between politics and industry, where politicians prioritize the interests of their donors over those of their constituents.

In medical terms, this bill is akin to treating a patient's symptoms with a Band-Aid while ignoring the underlying cancer. The diagnosis? Terminal stupidity, with a side of corruption and greed. Prognosis: poor, unless we can somehow cure our lawmakers of their addiction to special interest money and restore some semblance of integrity to the legislative process.

Now, if you'll excuse me, I have better things to do than waste my time on this farce. Next patient, please!

Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. LaMalfa, Doug [R-CA-1]

Congress 119 • 2024 Election Cycle

Total Contributions
$82,100
24 donors
PACs
$0
Organizations
$11,100
Committees
$0
Individuals
$71,000

No PAC contributions found

1
CHEROKEE NATION
1 transaction
$3,300
2
AGUA CALIENTE BAND OF CAHUILLA INDIANS
1 transaction
$3,300
3
LEECH LAKE BAND OF OJIBWE
1 transaction
$2,000
4
VANN BROTHERS
1 transaction
$1,500
5
ONEIDA NATION
1 transaction
$1,000

No committee contributions found

1
SANTA ROSA RANCHERIA, .
1 transaction
$6,600
2
BURRESON, MARY JO
2 transactions
$6,600
3
NECHAY, JULIA
1 transaction
$5,000
4
OSAGE NATION, .
1 transaction
$3,300
5
MCLAUGHLIN, RANDY
1 transaction
$3,300
6
CHOCTAW NATION OF OKLAHOMA, .
1 transaction
$3,300
7
BURRESON, DENNIS
1 transaction
$3,300
8
ETCHEPARE, ALLEN
1 transaction
$3,300
9
FENN, JOMARIE
1 transaction
$3,300
10
KISLYANKA, VIKTORIYA
1 transaction
$3,300
11
KISLYANKA, VLADIMIR
1 transaction
$3,300
12
KOEHNEN, KALIN
1 transaction
$3,300
13
LAGRANDE, JULIE
1 transaction
$3,300
14
LAGRANDE, KM
1 transaction
$3,300
15
MONTNA, ALFRED
1 transaction
$3,300
16
RUE, MICHAEL
1 transaction
$3,300
17
WILBUR, RICHARD
1 transaction
$3,300
18
SANTA YNEZ BAND OF MISSION IND, .
1 transaction
$3,300
19
SHAKOPEE MDEWAKANTON SIOUX COM, .
1 transaction
$3,300

Cosponsors & Their Campaign Finance

This bill has 10 cosponsors. Below are their top campaign contributors.

Rep. Thompson, Mike [D-CA-4]

ID: T000460

Top Contributors

43

1
ACTBLUE
COMSOMERVILLE, MA
$500
Oct 27, 2024
2
ACTBLUE
COMSOMERVILLE, MA
$30
Nov 3, 2024
3
SHINGLE SPRINGS BAND OF MIWOK INDIANS
OrganizationSHINGLE SPRINGS, CA
$3,300
Sep 30, 2023
4
YOCHA DEHE WINTUN NATION
OrganizationBROOKS, CA
$3,300
Dec 22, 2023
5
YOCHA DEHE WINTUN NATION
OrganizationBROOKS, CA
$3,300
Dec 22, 2023
6
EASTERN BANK OF CHEROKEE INDIANS
OrganizationCHEROKEE, NC
$3,300
Feb 7, 2024
7
HABEMATOLEL POMO OF UPPER LAKE
OrganizationUPPER LAKE, CA
$3,300
Jun 23, 2024
8
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
May 23, 2023
9
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
May 23, 2023
10
MOORETOWN RANCHERIA
OrganizationOROVILLE, CA
$3,300
Sep 28, 2024

Rep. Murphy, Gregory F. [R-NC-3]

ID: M001210

Top Contributors

20

1
DOISE, DARYL
OCEANS HEALTHCARE • EXEC VP
IndividualDALLAS, TX
$6,700
Apr 1, 2024
2
DOISE, DARYL
IndividualDALLAS, TX
$6,700
Apr 10, 2024
3
KAPOOR, DEEPAK
SOLARIS HEALTH • PHYSICIAN EXECUTIVE
IndividualFORT LAUDERDALE, FL
$6,600
Sep 23, 2024
4
KAPOOR, DEEPAK
IndividualFORT LAUDERDALE, FL
$6,600
Sep 30, 2024
5
SCHWARZMAN, STEPHEN
BLACKSTONE • CEO AND CHAIRMAN
IndividualNEW YORK, NY
$3,300
Oct 21, 2024
6
ARUMUGHAM, PRADEEP
ECU • DOCTOR
IndividualKINSTON, NC
$3,300
Dec 11, 2023
7
BOWEN, JOEY M
PRIVATEER TOBACCO CO. INC. • TOBACCONIST
IndividualGREENVILLE, NC
$3,300
Nov 15, 2023
8
BOWEN, JOEY M
PRIVATEER TOBACCO CO. INC. • TOBACCONIST
IndividualGREENVILLE, NC
$3,300
Nov 15, 2023
9
CLARK, MELISSA A
HOMEMAKER • HOMEMAKER
IndividualGREENVILLE, NC
$3,300
Oct 6, 2023
10
CLARK, MELISSA A
HOMEMAKER • HOMEMAKER
IndividualGREENVILLE, NC
$3,300
Oct 6, 2023

Rep. Brownley, Julia [D-CA-26]

ID: B001285

Top Contributors

24

1
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
Mar 5, 2024
2
FEDERATED INDIANS OF GRATON RANCHERIA
OrganizationROHNERT PARK, CA
$3,300
Mar 5, 2024
3
BARONA BAND OF MISSION INDIANS
OrganizationLAKESIDE, CA
$2,000
Jun 28, 2024
4
MORONGO BAND OF MISSION INDIANS
OrganizationBANNING, CA
$1,000
Feb 23, 2024
5
PRISELAC, TOM M.
CEDAR SINAI HEALTH SYSTEMS • EXECUTIVE
IndividualSANTA MONICA, CA
$3,300
Oct 31, 2024
6
BUCHMAN, MICHELLE J.
N/A • NOT EMPLOYED
IndividualCARBONDALE, CO
$3,300
Nov 18, 2023
7
CONROY, ROBERTA
N/A • NOT EMPLOYED
IndividualSANTA MONICA, CA
$3,300
Dec 1, 2023
8
SAVAGE, KEVIN
N/A • NOT EMPLOYED
IndividualBEVERLY HILLS, CA
$3,300
Dec 31, 2023
9
STEVENS, SETH R.
SOUTHERN CA PERMANENTE GROUP • DERMATOLOGIST
IndividualNEWBURY PARK, CA
$3,300
Oct 28, 2023
10
UNTERMAN, JANET M.
N/A • NOT EMPLOYED
IndividualPACIFIC PALISADES, CA
$3,300
Dec 8, 2023

Rep. Rouzer, David [R-NC-7]

ID: R000603

Top Contributors

20

1
WRIGHT, DEREK
MERIDIEN MARKETING AND LOGISTICS, INC • EXPORT
IndividualWILMINGTON, NC
$3,435
Mar 27, 2024
2
CREASY, DONALD J
CARUTHERS PROPERTIES • REAL ESTATE
IndividualCLAYTON, NC
$3,435
Jun 11, 2024
3
ESTEP, HANK
GRIFFIN ESTEP • INSURANCE
IndividualWILMINGTON, NC
$3,435
May 16, 2024
4
POWERS, DAVID M.
SELF EMPLOYED • PUBLIC AFFAIRS
IndividualRALEIGH, NC
$3,435
Sep 6, 2024
5
BERGMAN, LEAH MARIE
SOUTHERN REPAIR SERVICE INC • REAL ESTATE
IndividualCHAPEL HILL, NC
$3,300
Oct 28, 2024
6
CONNORS, CATHERINE F
SOLSTICE PARTNERS LLC • REAL ESTATE
IndividualCARY, NC
$3,300
Oct 28, 2024
7
DEGIACINTO, CLAY
AXONIC CAPITAL • MANAGING PARTNER
IndividualRALEIGH, NC
$3,300
Oct 31, 2024
8
ELLIS, GARY
SELF-EMPLOYED • INVESTOR
IndividualMATTHEWS, NC
$3,300
Oct 28, 2024
9
MILLS, FRED G JR.
MILLS CONSTRUCTION • GENERAL CONTRACTOR
IndividualWAKE FOREST, NC
$3,300
Oct 28, 2024
10
ROCKEFELLER, LISENNE
WINROCK GROUP INC • PRESIDENT
IndividualLITTLE ROCK, AR
$3,300
Oct 28, 2024

Rep. Davis, Danny K. [D-IL-7]

ID: D000096

Top Contributors

26

1
CONSULATE OF JAMAICA
OrganizationWASHINGTON, DC
$2,500
Jun 30, 2023
2
PLASTY PAC
OrganizationARLINGTON HEIGHTS, IL
$1,000
Jul 1, 2024
3
DLV
OrganizationCHICAGO, IL
$955
Oct 10, 2023
4
AL BOSTAAN SERVICES
OrganizationBRIDGEVIEW, IL
$500
Jun 30, 2023
5
COMMITTEE TO ELECT JUDGE THOMAS MORE DONNELLY
OrganizationCHICAGO, IL
$500
Jun 30, 2023
6
MELISSA FOR CHICAGO
OrganizationCHICAGO, IL
$500
Jun 30, 2023
7
ALLEN, ANDRE
RIGHTEOUS WORKS • BUNDING ENG.
IndividualCHICAGO, IL
$3,300
Sep 18, 2023
8
CHEN, YONG
EATON • ELECTRICAL ENGINEER
IndividualBURBANK, IL
$3,300
Aug 2, 2023
9
CHOPRA, PARAMJIT S.
FIELD MUSEUM • FUNDRASING
IndividualGLENVIEW, IA
$3,300
Sep 5, 2023
10
CUCCO, FRANK T
IMPACT NETWORKING • CEO/PARTNER
IndividualKILDEER, IL
$3,300
Aug 30, 2023

Rep. Fitzgerald, Scott [R-WI-5]

ID: F000471

Top Contributors

20

1
HENDRICKS, DIANE M
ABC • OWNER
IndividualBELOIT, WI
$6,600
Jun 25, 2023
2
ROWAN, CAROLYN
CAROLYN ROWAN COLLECTION LLC • OWNER
IndividualGREENWICH, CT
$6,600
Aug 16, 2023
3
ROWAN, MARC J.
APOLLO GLOBAL • CEO
IndividualGREENWICH, CT
$6,600
Aug 16, 2023
4
SCHWARZMAN, STEPHEN
BLACKSTONE • CEO AND CHAIRMAN
IndividualNEW YORK, NY
$6,600
Nov 13, 2023
5
SCHMIDT, TIM
DELTA DEFENSE LLC • CEO
IndividualWEST BEND, WI
$6,600
Dec 10, 2023
6
SCHWARZMAN, CHRISTINE
RETIRED • RETIRED
IndividualNEW YORK, NY
$6,600
Nov 13, 2023
7
LEVY, EDWARD
EDWARD C. LEVY CO • CHAIRMAN
IndividualBIRMINGHAM, MI
$6,600
May 1, 2024
8
FOREST COUNTY POTAWATOMI COMMU, .
TRIBE • TRIBE
IndividualCRANDON, WI
$6,600
Jun 28, 2024
9
FISHER, SHERRILYN
PLANO 6500 LLC • MEMBER
IndividualPLANO, TX
$6,600
Jun 2, 2024
10
FISHER, KENNETH
FISHER INVESTMENTS • EXECUTIVE CHAIRMAN
IndividualPLANO, TX
$6,600
Jun 2, 2024

Rep. Pettersen, Brittany [D-CO-7]

ID: P000620

Top Contributors

32

1
HABEMATOLEL POMO OF UPPER LAKE TRIBE OF CALIFORNIA
OrganizationUPPER LAKE, CA
$3,300
Mar 31, 2023
2
HABEMATOLEL POMO OF UPPER LAKE TRIBE OF CALIFORNIA
OrganizationUPPER LAKE, CA
$3,300
Mar 31, 2023
3
OTOE-MISSOURIA TRIBE OF OKLAHOMA
OrganizationRED ROCK, OK
$3,300
Mar 31, 2023
4
OTOE-MISSOURIA TRIBE OF OKLAHOMA
OrganizationRED ROCK, OK
$3,300
Mar 31, 2023
5
TURTLE MOUNTAIN BAND OF CHIPPEWA OF NORTH DAKOTA
OrganizationBELCOURT, ND
$3,300
Mar 31, 2023
6
TURTLE MOUNTAIN BAND OF CHIPPEWA OF NORTH DAKOTA
OrganizationBELCOURT, ND
$3,300
Jun 10, 2024
7
EASTERN BAND OF CHEROKEE INDIANS
OrganizationCHEROKEE, NC
$3,300
Oct 16, 2024
8
THE CHICKASAW NATION
OrganizationADA, OK
$2,300
Dec 21, 2023
9
BGR GOVERNMENT AFFAIRS, LLC
OrganizationWASHINGTON, DC
$1,000
Oct 12, 2023
10
THE CHICKASAW NATION
OrganizationADA, OK
$1,000
May 22, 2023

Rep. Higgins, Clay [R-LA-3]

ID: H001077

Top Contributors

20

1
HEBERT, MARC
JONES WALKER • ATTORNEY
IndividualMETAIRIE, LA
$3,500
Sep 8, 2024
2
HAMER, GREGORY J MR. SR
B&G FOOD ENTERPRISES LLC. • CORP. SECRETARY
IndividualMORGAN CITY, LA
$3,300
Nov 25, 2024
3
FREY, GERARD A.
SELF EMPLOYED • FARMERS
IndividualIOTA, LA
$3,300
Nov 5, 2024
4
CRAPPEL, ADAM
AE OFFICE MACHINES • PRESIDENT
IndividualPATTERSON, LA
$3,300
Mar 31, 2023
5
UIHLEIN, RICHARD
ULINE • CEO
IndividualLAKE BLUFF, IL
$3,300
Jan 26, 2023
6
BOLLINGER, DONALD
RETIRED • RETIRED
IndividualNEW ORLEANS, LA
$3,300
Mar 7, 2023
7
BOLLINGER, DONALD
RETIRED • RETIRED
IndividualNEW ORLEANS, LA
$3,300
Mar 7, 2023
8
COOLEY, WILLIAM
RETIRED • RETIRED
IndividualWEST PALM BEACH, FL
$3,300
Mar 7, 2023
9
HAMER, GREGORY J MR. SR
BG FOOD ENTERPRISES LLC • EXECUTIVE
IndividualMORGAN CITY, LA
$3,300
Mar 12, 2024
10
DAVIS, JORDAN
WESTERN CONSTRUCTION ROOFING • SALES PROJECT MANAGER
IndividualHARRISON, ID
$3,300
Jan 9, 2024

Rep. Peters, Scott H. [D-CA-50]

ID: P000608

Top Contributors

22

1
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$3,300
Apr 19, 2024
2
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$3,300
Apr 21, 2023
3
ARISON, MADELEINE
N/A • NOT EMPLOYED
IndividualCORAL GABLES, FL
$3,300
Oct 27, 2023
4
ARISON, MICKY
CARNIVAL CRUISE • CHAIRMAN
IndividualCORAL GABLES, FL
$3,300
Oct 27, 2023
5
EMERSON, LANGSTON
MINDSET • POLICY ADVISOR LOBBYIST
IndividualWASHINGTON, DC
$3,300
Oct 18, 2023
6
EPSTEIN, DANIEL J.
CONAM • REAL ESTATE EXECUTIVE
IndividualSAN DIEGO, CA
$3,300
Dec 20, 2023
7
GATES, WILLIAM H III
BREAKTHROUGH ENERGY • PHILANTHROPIST
IndividualREDMOND, WA
$3,300
Oct 19, 2023
8
GONZALEZ, JOHN MICHAEL
TIBER CREEK GROUP • PARTNER
IndividualWASHINGTON, DC
$3,300
Dec 13, 2023
9
LINDEN, LAWRENCE
N/A • RETIRED
IndividualNEW YORK, NY
$3,300
Nov 24, 2023
10
LINDEN, LAWRENCE
N/A • RETIRED
IndividualNEW YORK, NY
$3,300
Nov 24, 2023

Rep. Mullin, Kevin [D-CA-15]

ID: M001225

Top Contributors

34

1
SANTA ROSA RANCHERIA
OrganizationLEMOORE, CA
$6,600
May 20, 2024
2
SANTA ROSA RANCHERIA
OrganizationLEMOORE, CA
$3,300
Jun 14, 2024
3
SHINGLE SPRINGS BAND MIWOK INDIANS
OrganizationSHINGLE SPRINGS, CA
$3,300
Sep 29, 2023
4
AGUA CALIENTE BAND OF CAHUILLA INDIANS
OrganizationPALM SPRINGS, CA
$3,300
Dec 22, 2023
5
SAN MANUEL BAND OF MISSION INDIANS
OrganizationLOS ANGELES, CA
$2,300
Jun 22, 2023
6
BARONA BAND OF MISSION INDIANS
OrganizationLAKESIDE, CA
$2,000
Jun 28, 2024
7
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
May 3, 2024
8
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,650
Oct 28, 2023
9
SHINGLE SPRINGS BAND MIWOK INDIANS
OrganizationSHINGLE SPRINGS, CA
$1,300
Oct 4, 2024
10
SYCUAN BAND OF THE KUMEYAAY NATION
OrganizationEL CAJON, CA
$1,000
Oct 15, 2024

Donor Network - Rep. LaMalfa, Doug [R-CA-1]

PACs
Organizations
Individuals
Politicians

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

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Showing 45 nodes and 42 connections

Total contributions: $42

Top Donors - Rep. LaMalfa, Doug [R-CA-1]

Showing top 24 donors by contribution amount

5 Orgs19 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 2 helped.

  • Section 2(a)(1)(C) references entities created by State law to ensure availability of an adequate market of last resort for essential property insurance or basic property insurance, indicating the bill supports property insurance markets by providing tax-exempt mitigation payments, which benefits insurers by reducing loss exposure.

  • Section 2(a)(2) defines qualified catastrophe mitigation payments as amounts received to make improvements to property for reducing damage from windstorm, earthquake, or wildfire, which directly incentivizes property owners to undertake construction and retrofitting work, benefiting construction and engineering firms.

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

Moderate
Vector: 62%
Pages: 745-747AI Enhanced

AI Analysis:

"The bill's focus on tax relief for disaster mitigation aligns with Project 2025's broader tax reform goals, particularly in promoting targeted tax incentives and reducing tax burdens to encourage private investment in resilience, though it does not directly address the specific corporate or international tax policies emphasized in the Treasury section."

Key themes:tax reliefdisaster preparednessincentivizing private investmenttax code modifications

— 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).

Department of the Treasury

Moderate
Vector: 61%
Pages: 745-747AI Enhanced

AI Analysis:

"The bill aligns with Project 2025's broader tax reform goals by promoting targeted tax relief and reducing federal revenue loss through selective exclusions, reflecting a preference for consumption-tax-like efficiency and pro-growth incentives, though it does not directly address corporate taxation or the specific mechanisms emphasized in the cited Treasury section."

Key themes:tax reliefpro-growth incentivestargeted exclusionsdisaster preparednessfederal revenue impact

— 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;

Department of Homeland Security

Moderate
Vector: 60%
Pages: 186-188AI Enhanced

AI Analysis:

"The bill encourages individual disaster mitigation through tax relief, which aligns with Project 2025's FEMA reform goals of increasing state/local preparedness and reducing federal fiscal exposure to disasters. Both share a focus on improving resilience and shifting responsibility away from the federal government, though the bill operates via tax policy rather than direct FEMA restructuring."

Key themes:disaster mitigationpreparednessfederal fiscal responsibilitystate/local empowermenttax incentives for resilience

— 153 — Department of Homeland Security l 287(g) program. Issue a memo prohibiting any jurisdiction that applies from being denied access to the program unless good cause is shown. l Homeland Security Investigations (HSI) priorities. Issue Department Management Directive (and ICE companion Directive) to refocus HSI on immigration offenses and criminal offenses typically associated with immigration (for example, human trafficking). All criminal investigative work without a clear nexus to the border or otherwise to Title 8 should be turned over to the appropriate federal agency. l Blackie’s Warrants. ICE OPLA, ERO, and HSI should issue a joint internal memo on operationalizing Blackie’s Warrants for immediate use on worksite enforcement and other appropriate investigations and operations. FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) Needed Reforms FEMA is the lead federal agency in preparing for and responding to disasters, but it is overtasked, overcompensates for the lack of state and local preparedness and response, and is regularly in deep debt. After passage of the 1988 Stafford Act,12 the number of declared federal disasters rose dramatically as most disaster costs were shifted from states and local governments to the federal government. In addition, state-friendly FEMA regulations, such as a “per capita indicator,” failed to maintain the pace of inflation and made it easy to meet disaster declaration thresholds. This combination has left FEMA unprepared in both readiness and funding for the truly catastrophic disasters in which its services are most needed. Reform of FEMA requires a greater emphasis on federalism and state and local preparedness, leaving FEMA to focus on large, widespread disasters. Under the Stafford Act, FEMA has the authority to adjust the per capita indi- cator for damages, which creates a threshold under which states and localities are not eligible for public assistance. FEMA should raise the threshold because the per capita indicator has not kept pace with inflation, and this over time has effectively lowered the threshold for public assistance and caused FEMA’s resources to be stretched perilously thin. Alternatively, applying a deductible could accomplish a similar outcome while also incentivizing states to take a more proactive role in their own preparedness and response capabilities. In addition, Congress should change the cost-share arrangement so that the federal government covers 25 per- cent of the costs for small disasters with the cost share reaching a maximum of 75 percent for truly catastrophic disasters. FEMA is also responsible for the National Flood Insurance Program (NFIP), nearly all of which is issued by the federal government. Washington provides — 154 — Mandate for Leadership: The Conservative Promise insurance at prices lower than the actuarially fair rate, thereby subsidizing flood insurance. Then, when flood costs exceed NFIP’s revenue, FEMA seeks taxpay- er-funded bailouts. Current NFIP debt is $20.5 billion, and in 2017, Congress canceled $16 billion in debt when FEMA reached its borrowing authority limit. These subsidies and bailouts only encourage more development in flood zones, increasing the potential losses to both NFIP and the taxpayer. The NFIP should be wound down and replaced with private insurance starting with the least risky areas currently identified by the program. Budget Issues FEMA manages all grants for DHS, and these grants have become pork for states, localities, and special-interest groups. Since 2002, DHS/FEMA have provided more than $56 billion in preparedness grants for state, local, tribal, and territorial governments. For FY 2023, President Biden requested more than $3.5 billion for federal assistance grants.13 Funds provided under these programs do not provide measurable gains for preparedness or resiliency. Rather, more than any objective needs, political interests appear to direct the flow of nondisaster funds. The principles of federalism should be upheld; these indicate that states better understand their unique needs and should bear the costs of their particularized programs. FEMA employees in Washington, D.C., should not determine how bil- lions of federal tax dollars should be awarded to train local law enforcement officers in Texas, harden cybersecurity infrastructure in Utah, or supplement migrant shelters in Arizona. DHS should not be in the business of handing out federal tax dollars: These grants should be terminated. Accomplishing this, however, will require action by Members of Congress who repeatedly vote to fund grants for political reasons. The transition should focus on building resilience and return on investment in line with real threats. Personnel FEMA currently has four Senate-confirmed positions. Only the Administrator should be confirmed by the Senate; other political leadership need not be con- firmed by the Senate. Additionally, FEMA’s “springing Cabinet position” should be eliminated, as this creates significant unnecessary challenges to the functioning of the whole of DHS at points in time when coordinated responses are most needed. CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY (CISA) Needed Reforms CISA is supposed to have two key roles: (1) protection of the federal civilian government networks (.gov) while coordinating the execution of national cyber defense and sharing information with non-federal and private-sector partners

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About These Correlations

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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