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Speaker Johnson reaches tentative deal with blue state Republicans to boost cap on ‘SALT’ deduction

Speaker Johnson reaches tentative deal with blue state Republicans to boost cap on ‘SALT’ deduction

House Speaker Mike Johnson has reached a tentative deal with blue state Republican lawmakers to boost the cap on state and local tax deductions, or “SALT,” to $40,000 in President Donald Trump’s so-called “big, beautiful bill,” Republican sources confirmed to Fox News late Tuesday.  The proposed cap – which is up from $30,000 – would be per household for taxpayers making less than $500,000 per year.  GOP HOLDOUTS UNMOVED BY TRUMP’S ‘BIG, BEAUTIFUL’ TRIP TO CAPITOL HILL  It remains unclear whether GOP hardliners who oppose raising the SALT cap deductions will sign off on the measure.  The tentative agreement, first reported by Politico and confirmed by Fox News, comes as House GOP factions have been engaged in high-stakes debates on taxes, Medicaid, and green energy subsidies while crafting the president’s “big, beautiful bill.” SALT deduction caps primarily benefit people living in high-cost-of-living areas like New York City, Los Angeles, and their surrounding areas.  BLUE STATE REPUBLICANS THREATEN MUTINY OVER STATE AND LOCAL TAXES IN TRUMP’S ‘BIG, BEAUTIFUL BILL’ Republicans representing those areas have framed raising the SALT deduction cap as an existential issue, arguing that a failure to address it could cost the GOP the House majority in the 2026 midterms.  Meanwhile, Republicans representing lower-tax states are largely wary of raising the deduction cap, believing that it incentivizes blue states’ high-tax policies.  Fox News Digital’s Elizabeth Elkind contributed to this report. 

Senate unanimously approves $25,000 tax break for tipped workers

Senate unanimously approves ,000 tax break for tipped workers

The U.S. Senate has passed a new bill that would offer a tax deduction on tips worth up to $25,000. This bill, if enacted into law, would also extend to business tax credits for payroll taxes on tips in beauty and spa services. Sen. Ted Cruz, a Texas Republican, is pushing the proposal – which passed unanimously – an outcome considered rare for substantive legislation. NEW PROJECTION SIGNALS GOOD NEWS FOR FAMILIES, WORKERS IN TRUMP’S ‘BIG, BEAUTIFUL BILL’ There are stipulations in the new bill: an employee with compensation exceeding $160,000 in the prior tax year would not be eligible to claim the new tax deduction for tips. The bill is limited to cash tips received by occupations that are customarily tipped.  “Tipped occupations” are jobs where tips are common in the U.S., such as waiters, waitresses and professionals providing beauty services like barbering, hair care, nail care, esthetics, body and spa treatments. ‘FAILURE’S NOT AN OPTION’: TRUMP BUDGET BILL WILL BE ‘BIG’ HELP FOR SENIORS, TOP HOUSE TAX-WRITER SAYS The Budget Lab at Yale say they estimate there will be approximately 4 million workers in tipped occupations in 2023.  They must also be reported by the employee to the employer for withholding payroll taxes. Under the current law, only tips exceeding $20 per month are required to be reported. According to the report by Budget Lab, a non-tipped worker in 2023 was a minimum of approximately 10 years older than the typical tipped worker.  They also say one-third of the number of tipped workers were below 25, with 13% being teenagers. This new bill, if passed, would cost $110 billion in federal revenues over 10 years, according to estimates by the center-right Peter G. Peterson Foundation. Sen. Jacky Rosen, D-Nevada, pointed out during her floor speech that this bill was one of President Donald Trump’s key campaign promises. “I am not afraid to embrace a good idea, wherever it comes from. So I agreed we need to get this done,” she said. The passing of this bill through the Senate occurs as congressional Republicans attempt to seek advancement of a massive tax cut and spending package that will create a tax break on tips for the next four years. The next step is the House of Representatives before it becomes law.

Pittsburgh mayoral primary sees major upset as ‘old guard’ candidate defeats progressive incumbent Ed Gainey

Pittsburgh mayoral primary sees major upset as ‘old guard’ candidate defeats progressive incumbent Ed Gainey

Pittsburgh Mayor Ed Gainey was ousted Tuesday in a stiff Democratic primary challenge from Corey O’Connor, the son of a former city leader who had the support of the party’s “old guard” and some Republicans. Mayor Ed Gainey, seen as the progressive in the race, began the contest on roughly even footing in terms of campaign funding, but O’Connor, son of the late former Mayor Bob O’Connor, had outraised and outspent the incumbent by April – ultimately putting up a fight in a city that has not been competitive on a partisan level since the 1930s. O’Connor received support from some Republican donors, as well as the “old guard” Democratic base, according to The New York Times. “This is an election about Pittsburgh, about how we get our city back on the right track. It’s laughable to make arguments about progressive/not progressive. The outside groups that are meddling, I guarantee you – they haven’t looked at the records of either one of us,” O’Connor told the paper. GOP WINS FIRST PHILADELPHIA STATE SENATE SEAT IN 28 YEARS, AS RED GAINS IN BLUE AREAS CONTINUE O’Connor’s campaign has also shown support for the resourcing of the police and his own plan to revitalize the downtown area. He has also received large outside contributions from groups like Common Sense Change Action and Democracy Wins, according to the Post-Gazette. Gainey took office as the Steel City’s first Black mayor after defeating incumbent Mayor Bill Peduto in 2021. He has cast himself on the national stage as a critic of President Donald Trump and his agenda, while also working to attract new business to Pittsburgh — including the 2026 NFL Draft, which is estimated to bring a $200 million economic boost to the area, according to a source familiar. Gainey also previously pledged not to cooperate with federal ICE operations and has called Trump’s budget cuts a “direct attack on working families” and the economy of Western Pennsylvania. “ICE is not going to end the situation of a failed immigration policy. What it’s going to do is create more situations where people feel scared, where people don’t feel safe,” Gainey said in January – a sentiment which earned the rebuke of another Pittsburgh politician, Republican U.S. Sen. David McCormick. “Gainey needs to follow the law and the lead of some other Democratic mayors working to keep our cities safe,” McCormick said, according to WTAE. PA SEN MCCORMICK THANKS CASEY FAMILY FOR DECADES OF SERVICE AS DEMOCRAT DECLINES TO CONCEDE Gainey’s campaign has highlighted the mayor’s efforts to increase community policing and mental health professionals to assist in police response, while O’Connor also claims the mantle of the pro-police candidate. Under Gainey, the city ranks first in state population growth and has increased its affordable housing by 1,600 units. Working with Democratic Pennsylvania Gov. Josh Shapiro, Gainey secured $600 million for downtown revitalization and improvements to the city’s iconic Point State Park. “Thanks to our people-powered movement, our campaign has all of the momentum in this race. We’ve proven again and again since 2021 that when we come together — across race, across class, religion, age, across every line that’s ever been used to divide us — we are unstoppable,” Gainey said in a statement. CLICK HERE TO GET THE FOX NEWS APP On the Republican side, retired Police Det. Tony Moreno – who lost to Gainey last cycle – is running in the GOP primary against clothier Thomas West. On the other side of the commonwealth, George Soros-backed Philadelphia District Attorney Larry Krasner won his primary, and in the state’s third-largest city, Allentown, progressive incumbent Matt Tuerk is facing off against another “old guard” Democrat in Councilman Ed Zucal.

Soros-backed Philadelphia DA survives primary challenge, but potential GOP wrinkle ahead

Soros-backed Philadelphia DA survives primary challenge, but potential GOP wrinkle ahead

Philadelphia Democrat District Attorney Lawrence Krasner survived a primary challenge from Judge Pat Dugan in what was seen as a truly competitive race this year for top prosecutor in the six-to-one Democrat stronghold. However, if it turns out that Dugan received enough Republican write-in votes in addition to his cache on the Democrat ballot, he will have the opportunity to have a November rematch against Krasner. Republicans, largely out of power in the city since Mayor Bernard Samuel in the 1950s and two at-large city council seats reserved for minority parties, saw Dugan’s candidacy as an opportunity to oust Krasner whether he won or not on Tuesday. The city’s Republican Party funded a website advising voters to write-in Dugan on the Republican line. By law, if Dugan receives 1,000 write-ins, he will be named the Republican general election nominee, unless he declines the opportunity. That would give more city voters a chance to turn out Krasner in the November general election. 2024: THE YEAR LAW AND ORDER WAS RESTORED BY VOTERS “This is about making crime in Philadelphia illegal,” PhillyGOP Chair Vince Fenerty told the South Philly Review. Dugan had the support of several Democrat ward committees and Philadelphia political stalwarts like state Sen. Tina Tartaglione, plus a slew of union groups like IAFF and the Teamsters. In his pitch to voters, Dugan drafted a “geographic prosecution plan” to crack down on crime in the city. “This plan is about more than just fighting crime – it’s about rebuilding communities. [It] will hold criminals accountable, provide second chances when appropriate, and ensure every neighborhood feels the impact of a fair and just system they can trust and believe in again,” Dugan said in a statement on his campaign site. PHILADELPHIA DA KRASNER SLAMMED BY MURDER VICTIM’S SISTER: WE’RE FED UP Krasner, seeking a third term, has been lambasted for his progressive criminal justice policies and faced impeachment proceedings from Republicans in the now-Democrat-controlled state House of Representatives. In 2023, a Commonwealth Court judge ruled the GOP-controlled Senate cannot hold a trial because the House’s articles of impeachment didn’t meet the bench’s standards. One top Republican, 2022 gubernatorial nominee Sen. Doug Mastriano, who notably opposed Krasner’s impeachment, quipped, “Philadelphia: They want Krasner – they like him. That’s a huge mandate.” While there was a drop in homicides year over year in 2023, Philadelphia saw a spike from 351 the year he took office in 2018 to 562 in 2021. Krasner also ceased charges for certain offenses like marijuana possession, eliminated cash bail for some offenders and has sought generally more lenient sentences than conservatives want. In the city where then-Mayor James Kenney did a dance on social media to celebrate its inception as a sanctuary city, Krasner followed up by refusing to honor ICE detainer requests, saying that letting the feds tell him who to jail is unconstitutional. Krasner’s backing from about $1.45 million in political action committee support tied to Hungarian-American billionaire George Soros has also led to criticism. CLICK HERE TO GET THE FOX NEWS APP Last week, Dugan told PhillyVoice the city is feeling “Krasner fatigue” after eight years. “Many people come up to me and tell stories about how upset they are with some of the policies with the DA’s office,” he said.

Sen. Blackburn targets birth tourism, ‘buying American citizenship’ in support of Trump’s immigration agenda

Sen. Blackburn targets birth tourism, ‘buying American citizenship’ in support of Trump’s immigration agenda

Sen. Marsha Blackburn, R-Tenn., introduced new legislation Tuesday aimed at dismantling the multimillion-dollar birth tourism industry that allows foreign nationals to use America’s immigration system to secure automatic citizenship for their children. The Ban Birth Tourism Act, introduced in the U.S. Senate, would amend the Immigration and Nationality Act to declare inadmissible any foreign national seeking a tourist visa for the primary purpose of giving birth in the United States. Those births automatically trigger U.S. citizenship for the child, a long-criticized loophole that opens the door to future family-sponsored migration. SENATE REPUBLICANS INTRODUCE BILL TO REFORM BIRTHRIGHT CITIZENSHIP, FOLLOWING TRUMP’S CONTROVERSIAL ORDER Blackburn’s bill, which was read twice and referred to committee, includes a provision to protect legitimate medical travelers. If the primary reason for entry is medical treatment rather than citizenship acquisition, those cases would not be blocked. “For too long, foreign nationals have been exploiting our nation’s immigration laws, taking advantage of the system to come to the United States solely to give birth and obtain citizenship for their children,” Blackburn said in a press release.  “The Ban Birth Tourism Act would prevent foreign nationals, including those from adversaries like Communist China and Russia, from buying American citizenship for their children. As President Trump works to end birthright citizenship, we need to get this bill to his desk.” The push comes as the Trump administration intensifies its focus on restoring immigration integrity in the president’s second term. During his first term, President Trump repeatedly vowed to end automatic citizenship for the children of illegal immigrants and tourists. CALIFORNIA MAN SENTENCED FOR ‘BIRTH TOURISM’ SCHEME FOR AFFLUENT CHINESE WOMEN In 2020, the State Department under his administration began denying visas to suspected birth tourists, a move hailed by immigration enforcement advocates. Birth tourism is far from a fringe phenomenon. According to conservative immigration policy analysts, the industry accounts for at least 33,000 births annually to women on temporary visas. These children, upon turning 21, can legally sponsor their parents for green cards, offering a backdoor into the U.S. immigration system.  A 2015 report by the Center for Immigration Studies estimated the practice generates millions of dollars for companies that specialize in bringing pregnant foreigners, primarily from Russia and China, to the U.S. These firms often charge tens of thousands of dollars for packages that include visa coaching, hospital stays, and luxury accommodations. In one of the largest federal crackdowns to date, the former Trump administration’s Department of Justice in 2019 charged nearly 20 individuals in Southern California for operating extensive birth tourism networks targeting Chinese nationals. Prosecutors accused the businesses of coaching clients to lie to immigration officials about the purpose of their travel, a tactic common among such operations. Blackburn’s bill would codify into law the inadmissibility of any traveler seeking to exploit this loophole, ensuring that birthright citizenship cannot be used as a ticket to game the system.  CLICK HERE TO GET THE FOX NEWS APP The Office of Senator Marsha Blackburn referred Fox News Digital to a Tuesday press release.

WATCH: Democrat lawmaker charged with assaulting federal agents laughs off fundraising questions

WATCH: Democrat lawmaker charged with assaulting federal agents laughs off fundraising questions

Rep. LaMonica McIver, D-N.J., refused to answer Fox News’ questions over whether her motivations for storming a federal immigration detention center earlier this month was to increase her public image, after it was uncovered McIver had been fundraising off the incident that has led to federal charges for the New Jersey Democrat. The Department of Justice publicly outlined federal charges against McIver on Tuesday, accusing her of allegedly “assaulting, impeding and interfering with law enforcement” earlier this month at a Newark-area immigrant detention facility known as Delaney Hall. McIver was there with two other members of Congress to conduct what they claimed were their congressionally mandated oversight duties, as well as the Mayor of Newark, New Jersey, Ras Baraka, who was subsequently arrested following the incident but later had his charges dropped. “Congresswoman, would you be able to tell us what made you decide to fundraise off the incident, the charges?” McIver was asked. DEM LAWMAKER FUNDRAISES OFF FEDERAL ASSAULT CHARGES AFTER ICE FACILITY CONFRONTATION: ‘DOING MY JOB’ “No comment,” McIver said as she laughed off the reporter asking the question. “Have a wonderful day.” “How do you respond to people who might think that’s why you went to the ICE facility? That you wanted to fundraise off of it?” But the follow-up question went unanswered as the congresswoman repeatedly ignored the reporter’s questions and instead focused her attention on a discussion with her staff that were accompanying McIver at the time.   “Any comment, congresswoman, on the fundraising? Anything you could have done different to avoid the charges?” DOJ CITES BODYCAM FOOTAGE IN CHARGING DOCUMENT FOR HOUSE DEM MCIVER On Tuesday, Fox News Digital uncovered McIver was fundraising off her charges shortly after they came down from the Justice Department. Investigators accused McIver of assaulting two federal agents at Delaney Hall, according to the charging documents. Law enforcement says McIver assaulted the agents when she “slammed her forearm into the body of a uniformed” immigration official while trying to “restrain the agent by forcibly grabbing him.” McIver also allegedly tried to block agents from arresting Baraka and, after he was put in handcuffs, allegedly “pushed an ICE officer and used her forearms to forcibly strike the agent.” “As you know, Trump is using his Department of Justice to target political opponents. Less than two weeks ago, I was doing my job and conducting oversight at an ICE facility in my city,” a fundraising text obtained by Fox News Digital stated. “Now, the Trump admin has filed charges against me. This is a first-and it’s a flashing red light for our democracy,” it continues. “I’m sounding the alarm and asking you to donate now so we can fight these charges and keep speaking truth to power.”