EXCLUSIVE: Former Vice President Mike Pence is urging House Republicans to stand firm against hiking takes on the country's top-earners, as sources tell Fox News Digital the White House is floating a millionaire tax hike proposal to offset the cost of eliminating taxes on overtime pay, tipped wages and retirees' Social Security.

Advancing American Freedom (AAF), the conservative policy advocacy group Pence launched in 2021, sent a letter to congressional Republicans, including House Ways and Means Committee Chairman Rep. Jason Smith, R-Mo., and Senate Finance Committee Chairman Sen. Mike Crapo, R-Idaho, advising Congress to "stand firm against tax hikes."

"President Trump and Republicans in Congress promised to make the Tax Cuts and Jobs Act permanent and work to secure further tax cuts. Republicans should stick to their promises and not pull pages from Kamala Harris’ losing policy platform," AAF President Tim Chapman and Board Chairman Marc Short wrote in the letter, referring to Trump's 2017 Tax Cuts and Jobs Act, which is set to expire this year.

WHITE HOUSE QUIETLY FLOATS MILLIONAIRE TAX HIKE PROPOSAL IN CONGRESS AS GOP LEADERS SIGNAL OPPOSITION

"The American people voted for tax cuts, not tax hikes. Advancing American Freedom calls on Republicans to swiftly renew the across-the-board tax cuts that unleashed prosperity during President Trump’s first term and deliver on the promise to make America prosperous again," they wrote. 

Pence added in a statement to Fox News Digital, "The Trump-Pence tax cuts lowered taxes across the board – for working families and businesses large and small. The results were historic. We got America’s economy booming like never before and created more opportunity for all Americans. Republicans know that less taxes mean more jobs."

HAWLEY URGES REPUBLICANS TO CUT TAXES FOR WORKING-CLASS VOTERS WHO 'PUT TRUMP IN THE WHITE HOUSE'

Two sources familiar with the discussions told Fox News Digital that White House aides have been quietly floating a proposal to House Republicans that would raise the tax rate for people making more than $1 million to 40%. The plan is intended to mitigate the cost of Trump's ambitious 2024 campaign promise to cut taxes on overtime pay, tipped wages and retirees' Social Security.

The sources stressed the discussions were only preliminary, and the plan is one of many being discussed as congressional Republicans work on advancing Trump's "big, beautiful bill." 

Pence responded to Fox News Digital's reporting on Wednesday, urging House Republicans to resist tax increases on the wealthy.

"Republicans Don’t Raise Taxes. Republicans Cut Taxes," Pence responded on X. "Raising the Top Marginal Rate would be a Huge Tax Increase on Small Business America."

Pence has often criticized Trump's policies during his second term, most recently critiquing Trump's tariff uncertainty, arguing even 10% tariffs would drive inflation higher and hurt American families. In a call for limited government, Pence also advocated for Congress to reclaim their authority over tariffs during remarks this week. 

Trump's former vice president refused to endorse him in 2024. Pence, who himself launched a short-lived 2024 presidential campaign, unexpectedly dropped out of the race for the White House during remarks at the Republican Jewish Coalition's annual event in Las Vegas in October 2023. Trump spoke on the same stage soon after Pence's announcement without acknowledging the news. 

However, Trump and Pence were seen shaking hands at former President Jimmy Carter's funeral in December – their first public appearance together in nearly four years. Pence congratulated Trump on winning the 2024 election, despite refusing to endorse him. 

Pence has distanced himself from his former boss since the riot at the U.S. Capitol on Jan. 6, 2021, when Pence defied Trump's wishes by affirming that former President Joe Biden rightly won the 2020 election. Rioters called for Pence to be hanged, and the former vice president has faced the ire of Trump's most loyal supporters ever since.

The former vice president's campaign failed to gain traction as Trump's lead over the crowded Republican Party widened, and Republican voters proved they had not forgotten Pence's "disloyalty" to Trump during the attacks on the U.S. Capitol. 

Pence ran on a traditional conservative platform, framing the future of the Republican Party against what he called the rise of "populism" in the party. Among the slim anti-Trump base of the Republican Party, Pence received praise for his courage on that day. As Pence campaigned in Iowa and New Hampshire, voters at town halls often thanked Pence for standing up to Trump. 

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"Mike Pence stood for the Constitution. He deserves, not grudging credit. He deserves our thanks as Americans for putting his oath of office and the Constitution of the United States before personal, political and unfair pressure," former Gov. Chris Christie, R-N.J., the candidate who rejected Trump most during the Republican primary, said on the debate stage. 

The White House did not respond to Fox News Digital's request for comment by deadline. 

While American taxpayers are familiar with the annual rigmarole of filing their federal taxes and realizing just how much of their hard-earned money Uncle Sam is taking away, several House Republicans are pushing a proposal to take some things away from the Internal Revenue Service (IRS): Guns and ammunition.

The "Why Does the IRS Need Guns Act" would disarm the federal agency, prohibiting the commissioner of internal revenue from using funds to buy, receive or store firearms and ammo, and requiring the transfer of IRS firearms and ammunition to the Administrator of General Services. 

The guns would then be sold or auctioned to licensed dealers and the ammo would be auctioned to the public. 

Proceeds would go to "the general fund of the Treasury for the sole purpose of deficit reduction," the measure stipulates.

TRUMP SAYS THERE'S A ‘REAL CHANCE’ TARIFFS COULD REPLACE INCOME TAX

The bill states that "there are transferred to the Department of Justice the authorities, functions, personnel, and assets of the Criminal Investigation Division of the Internal Revenue Service, which shall be maintained as a distinct entity within the Criminal Division of the Department of Justice, including the related functions of the Secretary of the Treasury."

Rep. Barry Moore, R-Ala., introduced the measure, which is backed by three original cosponsors: GOP Reps. Harriet Hageman of Wyoming, Mary Miller of Illinois and Clay Higgins of Louisiana. 

The IRS says on its website that its "mission is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and to enforce the law with integrity and fairness to all."

WHITE HOUSE QUIETLY FLOATS MILLIONAIRE TAX HIKE PROPOSAL IN CONGRESS AS GOP LEADERS SIGNAL OPPOSITION

But Moore claimed that the federal agency has regularly been "weaponized."

"The IRS has consistently been weaponized against American citizens, targeted religious organizations, journalists, gun owners, and everyday Americans," Moore asserted, according to a press release. 

"Arming these agents does not make the American public safer. My legislation, the Why Does the IRS Need Guns Act, would disarm these agents, auction off their guns to Federal Firearms License Owners, and sell their ammunition to the public. The only thing IRS agents should be armed with are calculators."

HAWLEY URGES REPUBLICANS TO CUT TAXES FOR WORKING-CLASS VOTERS WHO ‘PUT TRUMP IN THE WHITE HOUSE’

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In an April 15 post on X, Moore noted, "Tax Day is a great reminder that it's time for the IRS to stop wasting our taxpayer dollars stockpiling guns and ammo."

Sen. Josh Hawley, R-Mo., is urging his Republican colleagues to double down on tax cuts for the working-class Americans who make up President Donald Trump's base.

Hawley told Fox News Digital in an interview that tax cuts are "what Republicans are good at," calling specifically for changes to the payroll tax. He says Americans should be able to apply income tax credits like the child tax credit, the mortgage deduction and charitable deduction, to their payroll taxes.

Hawley, who first made the push in a Tuesday op-ed for the Washington Post, says he has spoken with Trump about the potential tax breaks and the president is "very supportive."

"These are the people who put Trump in the White House," Hawley told Fox, referring to Americans who earn less than $80,000 per year.

ELON MUSK DUNKS ON SEN CHUCK SCHUMER, DECLARING ‘HYSTERICAL REACTIONS' DEMONSTRATE DOGE’S IMPORTANCE

Debate over tax policy is raging in Washington as Republicans weigh what to put in Trump's "big, beautiful" budget bill. Many Republicans support re-upping the 2017 tax cuts, but there are calls for more changes.

Some Republicans, including the White House, have even flirted with raising taxes on the uppermost brackets in order to offset costs.

"We’ve got this incredible national debt, and so at some point you’ve got to address the elephant in the room," Sen. Bill Cassidy, R-La., told the New York Times on Tuesday. "Can’t tell you if it’s going to happen or not."

Hawley has also said he would support raising some taxes to offset cuts in lower tax brackets if the president makes a push for it.

TRUMP OPEN TO SENDING VIOLENT AMERICAN CRIMINALS TO EL SALVADOR PRISONS

He proposed to Fox that one path toward raising more revenue would be to start taxing the endowments of America's largest universities.

MEET THE TRUMP-PICKED LAWMAKERS GIVING SPEAKER JOHNSON A FULL HOUSE GOP CONFERENCE

Trump's administration is already engaged in a pitched battle to reform America's top educational institutions, threatening to withhold federal funding if they do not adequately address anti-Semitism and other issues on their campuses.

Harvard, the university that has pushed back the hardest on Trump's administration, has an endowment of roughly $53 billion.

The other seven Ivy League schools have endowments totaling over $139 billion.

Regardless of offsets, however, Hawley says the top priority should be securing tax breaks for the people who voted Trump into office.

Hawley emphasized this focus in his op-ed for the Post, quoting Reagan-era columnist Robert Novak.

"God put the Republican Party on Earth to cut taxes."

There are moments in life when your own stupidity dumbfounds you. The letter I got from the IRS — on my birthday, no less — was one of those moments.

"Your tax return does not match the information we have on file," the three-page letter began in large bold font.

Confusion quickly curdled into panic. I had to scan the document four times before my brain absorbed the issue. On a page titled "What caused the differences," there were two numbers listed side by side. One number, under the heading "reported by third parties," was my salary at Business Insider. The other number, under "shown on your return," was zero dollars.

Oh, Christ. Not only had I forgotten to attach my W2 in my filing, but I hadn't even declared my salary at BI, which I had joined midway through the year. Without meaning to, I had cheated on my taxes.

In my defense, 2023 had been a chaotic year for my family. Both my wife and I changed jobs. We had our second kid, which meant we remained sleep-deprived throughout tax season. We started a college savings fund for our children. So when it came time to upload all our tax documents, we missed one of the biggest of them all — my W2 for the second half of the year.

I took pictures of the IRS notice and emailed it to Greta Whelan, our accountant for the past decade. She replied three minutes later. "I'll take a look and get back to you," she assured us. "This happens much more often than you might think."

As usual, Greta was right. Every year, several million of Americans fail to properly file their taxes. The IRS also sends taxpayers 170 million notices a year.

My therapist told me I was his third client to get an IRS notice this year. I heard about a guy who became the CEO of a major corporation but forgot to tell his accountant — who wound up omitting more than $3 million in income on the guy's returns. Even tax specialists screw up and forget to attach their W2s. "It happened to me once, I hate to confess," says Richard Rampell, a retired accountant in Palm Beach, Florida.

The galling thing is, it doesn't have to be this way. In the notice I received, the IRS revealed that it already knew damn well exactly how much I had earned from BI that year — without my help. In other words, just by consulting the W2 it received from BI, it could have solved my problem before it even arose. But rather than share its knowledge with me, it penalized me for not reporting the information it already had in hand. More than three dozen other countries already have systems in place to eliminate the need for taxpayers to submit their W2s — but lobbyists for TurboTax and H&R Block have squashed efforts to bring tax sanity to America. With one simple change, we could simplify tax filing, eliminate inadvertent mistakes like mine, and increase America's tax revenue, all without adding a single IRS agent to the federal payroll.

Countries as diverse as Chile, Denmark, and Estonia already automate tax returns. In New Zealand, you log onto a website, see what the government says you owe, and click to verify. In Japan you get a postcard. The government calculates your taxes, you agree or disagree, and you're done. It's a win-win for everyone: less stress for taxpayers, more money for schools and roads and healthcare.

In 2005, the Stanford law professor Joseph Bankman — Sam Bankman-Fried's dad — designed a California pilot program called ReadyReturn, in which single-income taxpayers received return forms prefilled with information the state already had on them. It was a huge success; 99% of taxpayers gave it positive reviews. Arnold Schwarzenegger, then governor, was a fan, and other states were watching closely. But when Bankman tried to get ReadyReturn passed through the state legislature, lobbyists from the big tax accounting firms made sure it was shot down. Why let the government fill out your tax forms for free, when you can pay $50 for some software and struggle through it on your own?

As a result, Americans are stuck with a system that's both cumbersome and prone to errors. A study by economists at the Treasury Department and Dartmouth College found that nearly half of all tax returns are so simple that the IRS could automate them. But instead of implementing this one simple fix to America's tax system, Elon Musk and DOGE are busy firing IRS employees who were working to modernize the agency's technology and operate its taxpayer hotline. In the absence of automated returns, it's been estimated that Americans were forced to spend an average of nine hours on their taxes last year — a staggering 7.9 billion hours of needless stress and lost productivity.

When you get a notice from the IRS, you enter a game of chicken. All our notice asked for was for us to check a box indicating whether we agreed or disagreed with the differences between the amount of income we filed on our returns and the amount the agency knew we actually made. The notice was asking us to say, "You caught me." There was nothing about how much we owed. With the IRS, only after you confess to your crime does the agency send you the bill.

The problem is, you could be waiting a long time for that bill. The agency has a three-year statute of limitations to review filings. But since the pandemic, Greta explained to us, it's been taking longer and longer for the IRS to do its job. Greta has some clients who received bills more than a year and a half after they filed their taxes.

Hence, the game of chicken. We could refile our returns right away and pay the additional taxes we owed, plus nine months of interest and penalties. Or we could wait for the bill and risk letting many more months — or even years — of interest and penalties accrue, in the hopes that we could beg for mercy as first-time offenders.

Greta asked what we wanted to do. Make it go away, we said. Tell us what we owe and make the nightmare end. She redid our returns and emailed us a revised calculation. All told, we owed $10,102, including just over a grand in penalties and interest. Call me crazy, but this sure seems like a place where the world's richest man — a guy who built his wealth on the wonders of technology — could help me keep a little of my own.

Zak Jason is a deputy editor of Discourse at Business Insider.

EXCLUSIVE: As Tax Day approaches, the Senate’s DOGE leader announced a new effort Monday aimed at cracking down on federal bureaucrats who have racked up billions in unpaid taxes.

Sen. Joni Ernst, R-Iowa, is introducing the Tax Delinquencies and Overdue Debts are Government Employees' Responsibility (Tax DODGER) Act in response to reports of tax scofflaws within the bureaucracy the taxes themselves are supposed to bankroll.

The Tax DODGER Act would require the Internal Revenue Service (IRS) to publish an annual report on tax delinquencies of current and retired federal employees, including those who failed to file a 1040 or other tax return.

"It is outrageous that while hardworking Americans fork over their money to Uncle Sam, nearly 150,000 bureaucrats refuse to pay their own taxes," Ernst told Fox News Digital.

LAWMAKERS TAKE ACTION AFTER REPORT SHOWS BIDEN-ERA SBA FAILED TO PROBE 2 MILLION ALLEGED COVID AID FRAUDSTERS

The bill also establishes a new section in the law that could consider a federal job applicant ineligible for hire if they have "seriously delinquent" tax debt, unless already granted a hardship exemption.

"If you don’t pay taxes, you should not work for the federal government," Ernst said. 

"I am ending the ‘rules for thee, but not for me’ mentality in Washington."

Ernst highlighted a recent Treasury Inspector General report showing that while 96% of IRS employees were found to be tax-compliant, more than 2,000 employees had past-due balances totaling more than $12 million as of the end of last year.

Meanwhile, a 2023 IRS report found 149,000 total federal employees owed $1.5 billion in tax liabilities for fiscal year 2021.

SENATE DOGE LEADER SAYS TRUMP ‘ALREADY RACKING UP WINS’

She wrote to Treasury Secretary Scott Bessent in March that Americans and many lawmakers had "lost confidence in the IRS" and that he had an opportunity as the agency’s new ultimate boss to address several issues that don’t need congressional approval.

The lawmaker referenced past political weaponization of the agency – such as when Obama-era staffer Lois Lerner allegedly targeted conservative groups – as well as upgrading the IRS’ reportedly outdated technology.

As part of her initial effort last fall to forge a working relationship with DOGE leader Elon Musk, Ernst similarly launched a call for an audit of the IRS.

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If passed, the bill would require that reports on tax-scofflaw bureaucrats be sent on an annual basis to the Office of Personnel Management, Senate Homeland Security and Government Affairs Committee, and House Oversight Committee.

Additionally, any agency leader may take personnel action up to and including the firing of a federal employee if there is administrative or judicial determination they understated their tax liability or failed to file a return.

President Donald Trump vowed on Sunday that nobody was getting "off the hook" for unfair trade balances and tariff barriers, which other countries have used against the U.S.

The Trump administration announced Friday that it was exempting imported smartphones, laptops and other electronics from reciprocal tariffs, but the president wanted to clear a few things up.

"There was no Tariff ‘exception’ announced on Friday," Trump said in a post on X on Sunday. "These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket.’  The Fake News knows this, but refuses to report it. We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.

"What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries, especially hostile trading Nations like China, which will do everything within its power to disrespect the American People," he continued. "We also cannot let them continue to abuse us on Trade, like they have for decades, THOSE DAYS ARE OVER!"

TRUMP'S TARIFF BLITZ NOW EXEMPTING ELECTRICAL GOODS LIKE PHONES, LAPTOPS

Trump closed out his post by saying the Golden Age of America will mean "more and better paying jobs" as well as making products in the U.S. and treating other countries as they have treated America.

"The bottom line is that our Country will be bigger, better, and stronger than ever before," he said. "We will MAKE AMERICA GREAT AGAIN!"

Customs and Border Protection issued new guidance on reciprocal tariff negotiations late Friday, noting the exemption of those goods from Trump’s April 2 executive order that declared a national emergency due to non-reciprocal trade practices and structural imbalances in the global trading system. Subsequent executive orders ramped up tariffs on China to 125%.

'DEAL-MAKER-IN-CHIEF': BEHIND THE SCENES OF TRUMP'S TARIFF PAUSE, WHERE HE HAS FINAL SAY OVER NEGOTIATIONS

The updated guidance, which cites a presidential memorandum issued Friday, excluded the products from Trump’s 125% China tariff and his baseline 10% global tariff on some countries. They apply to goods that left a warehouse as of April 5.

The new move will likely ease the blow for consumers while giving a boost to electronics giants such as Apple, Samsung and Dell.

A White House official confirmed to Fox News that the exemptions were put in place.

CHINA REFUSES TO BACK DOWN ON TARIFFS AFTER TRUMP THREATENED TOUGHER MEASURES

Products included in the exemption are things like hard drives, computer processors, solar cells, semiconductor manufacturing equipment, flat-panel TV displays and memory chips.

But in light of the easing of tariffs on electronics, Commerce Secretary Howard Lutnick said Sunday the exemption would be temporary.

"They’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two," Lutnick told ABC’s "This Week" on Sunday.

Lutnick’s comments Sunday made clear that more changes were on the horizon.

Trump told reporters on Air Force One on Saturday night that he would get into more specifics on exemptions on Monday.

"We’ve been making a lot of money," he said. "It’s been the other way around. Other countries, in particular China, was making a lot of money."

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In a statement issued Saturday, White House press secretary Karoline Leavitt did not specifically address the exemptions but indicated the administration still plans to push for tech companies to move manufacturing to the U.S.

She said the administration has secured U.S. investments from tech companies, including Apple, TSMC and Nvidia, that are "hustling to onshore their manufacturing in the United States as soon as possible."

Fox News Digital’s Michael Dorgan, Brie Stimson and Sarah Tobianski, as well as the Associated Press, contributed to this report.

EXCLUSIVE: One day after the House passed its version of the "big, beautiful" budget bill demanded by President Donald Trump, Senate Republican leaders were bullish on the prospects of a deal coming together when lawmakers return from Passover/Easter break.

"Republicans have a bold agenda. The sooner we pass it, the sooner we can reverse the damage that Democrats have done over the last four years," Senate Majority Whip John Barrasso, R-Wyo., told Fox News Digital, as Senate leaders made a high-dollar budget cut promise earlier in the week.

"The American people need certainty that they aren’t going to face the Democrats’ $4 trillion tax increase," said the lawmaker, whose role is to "whip" or tally Republicans’ planned votes ahead of them being cast on the floor.

Senate Majority Leader John Thune of South Dakota remains under pressure to deliver on $1.5 trillion in budget cuts he pledged to secure some of the votes from waffling House conservatives. The Senate version of the bill that passed earlier this month only called for $4 billion in spending cuts – a massive discrepancy from the House's version.

AK SEN LITERALLY SHREDS BIDEN'S ENERGY ORDERS

In exchange for their votes, Thune and Barrasso must coax Senate GOP moderates and members with concerns over potential Medicaid or entitlement cuts that they won't be part of the sizable slice.

Additionally, the debt ceiling is projected to be hit during the summertime, which Republicans will have to reckon with financially as well. A failure to adjust for that ceiling could result in default.

TRUMP'S BIG, BEAUTIFUL TAX AGENDA SCORES MAJOR VICTORY

However, Thune was equally optimistic as Barrasso about pushing through Trump's agenda, saying the upper chamber’s agenda will be "packed" overall.

"More nominations to confirm. More burdensome Biden regulations to repeal. A tax bill – and border, energy, and national security bill – to continue drafting," he said.

Speaking to Fox News Digital, Thune said committee leaders were working through the holiday on varying legislation planned to come for votes soon after they return.

"And, of course, appropriations season is almost upon us. And I remain committed to considering as many appropriations bills as possible under regular order," he said.

Regular order refers to matriculating bills through the committee process, which Thune previously said promotes bipartisanship and trust between lawmakers and the parties.

The practices of governing by long-term continuing resolutions, or CRs, are considered antithetical to regular order.

Barrasso said the American people need to know that Republicans will stand firm on investing in domestic energy and border security in their post-Easter return.

"Our goal is to get this bill passed and sent to the president’s desk as quickly as possible. We’ll work towards that every day until it’s done."

Fox News Digital reached out to Senate Minority Leader Charles Schumer, D-N.Y., for comment on Democrats’ short-term plans but did not receive a response.

Thursday’s House bill passed generally along party lines, after fiscal conservatives largely balked at the financial figures.

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The number of GOP holdouts was eventually whittled down to two – Thomas Massie of Kentucky and Victoria Spartz of Indiana – who voted with the Democrats, albeit for ideologically opposing reasons.

"Our first big, beautiful reconciliation package here involves a number of commitments. And one of those is that we are committed to finding at least $1.5 trillion in savings for the American people, while also preserving our essential programs," House Speaker Mike Johnson, R-La., said.

Fox News’ Elizabeth Elkind contributed to this report.

• Americans who secretly work multiple remote jobs are finding ways to reduce their tax burdens.
• Some said establishing an S-Corp and maxing out their 401(k)s are among their top tax strategies.
• Others contribute to charities or deduct business expenses from their incomes.

Damien has secretly worked multiple remote jobs, earning six figures on and off for years. To reduce his hefty tax burden, he's used several strategies, including maxing out his 401(k).

Damien, who works in IT support, is on track to earn $386,000 this year from three full-time remote jobs, two of which are 1099 contractor roles. The earnings from his contract positions flow to an LLC he established in 2022, which he elected to be taxed as an S Corporation. This helps him reduce the amount he owes in self-employment taxes, he said.

"Tax wise, it's a substantial difference," said Damien, whose identity was verified by Business Insider but who asked to use a pseudonym, citing a fear of professional repercussions. "I would have to guess it's tens of thousands of dollars that I'm saving."

Damien is among the Americans who have secretly juggled multiple remote jobs to boost their incomes and who have found strategies to reduce their tax burdens. Others make charitable donations and deduct business expenses from their incomes. Over the past two years, BI has interviewed more than two dozen "overemployed" workers who've used their additional earnings to travel the world, buy weight-loss drugs, and pay down debt.

Six job jugglers shared their experiences on the condition that pseudonyms would be used, for fear of professional repercussions. BI has verified their identities and earnings.

To be sure, what works for these job jugglers may not make sense for everyone. Tax professionals can provide advice for specific situations.

S-corps and business deductions help job jugglers reduce their taxes

John, who works in IT, earned more than $300,000 in 2023 secretly working two remote jobs. His earnings from one contract job flow into his S-Corp, which he also uses to deduct business expenses, reducing his taxable income.

Business expenses include software subscriptions to ChatGPT, online programming courses, and the home office deduction, which allows him to deduct $5 per square foot of his home office.

"If I needed a new computer desk or chair, I'd run that through my business," said John, who is based in California.

To reduce his taxable income further, John said he donates to charitable organizations and makes significant 401(k) contributions.

Harrison also has an S-Corp, but his tax situation is more complicated. Harrison has six full-time remote jobs as a quality assurance professional in the IT sector and estimates he'll earn roughly $800,000 this year. He's built a team of seven workers who help him complete his duties.

Three of Harrison's jobs are contract roles, and he said the income for these flows into his S-Corp, which he said helps reduce his taxable income.

Lisa Greene-Lewis, a CPA and tax expert with TurboTax, said that S-Corps can help people legally reduce the amount they owe in self-employment taxes. Individuals are required to pay themselves a "reasonable" salary — which is subject to employment taxes — but then can take additional distributions from profits their companies generate that are not subject to these taxes. But she said there are limits to an S-Corp's tax benefits.

"In the eyes of the IRS, you could not pay yourself a majority of your business income to avoid more self-employment taxes," she said, adding, "If you pay yourself too little, the IRS could determine the amount they think you should be paid based on your business profit."

She added that S-Corp owners tend to have more tax prep-related expenses and must file a business tax return by March 1st, rather than the April 15 deadline for personal tax returns.

Despite the tax benefits that come with his S-Corp, Harrison said he tends to owe a significant amount of money in taxes. But he said he's still coming out ahead financially.

"Making more and paying more in taxes is better than making less and paying less," he said.

Some job jugglers accept their higher taxes

Adam earns roughly $170,000 annually secretly working two remote security risk jobs. He plans on reducing his taxable income this year by contributing $23,500 to his 401(k) — the maximum amount allowed by the IRS — and donating about $1,200 to charitable organizations.

However, not every job juggler is taking significant steps to reduce their taxable income. Daniel earns about $250,000 annually working two remote IT gigs in the finance industry. He said his main focus is withholding enough in taxes to ensure his tax payment isn't too steep.

"I've never had an issue with paying taxes," he said.

Kelly is on track to earn nearly $300,000 this year secretly working two full-time remote jobs as an engineer. She said her taxes aren't too complicated and finding ways to lower her taxable income isn't something she thinks too much about.

"I don't mind paying taxes on both jobs even if I owe," she said.

Do you have a story to share about secretly working multiple jobs or discovering an employee is doing so? Contact this reporter via email at jzinkula@businessinsider.com or Signal at jzinkula.29.

China announced the immediate restriction of imported American films as the country retaliated against President Donald Trump’s escalated U.S. tariffs on imported Chinese goods.

Trump was asked about his reaction to China’s latest move of targeting cultural exports from the U.S. on Thursday during a cabinet meeting.

"I think I've heard of worse things," the president said, which was followed by a room full of laughter.

Reuters reported that the financial impact would likely be minimal, according to industry experts, but mainly because box office returns have significantly declined in recent years in China.

TRUMP TARIFF SPIKE FUELS NEW HOUSE BILL TO LOCK CHINA OUT OF US GOVERNMENT TECH

For about 30 years, China imported 10 Hollywood movies annually. But the National Film Administration (NFA) in Beijing said on its website that Trump’s tariffs would continue to sour its domestic demand for American movies in China.

"We will follow market rules, respect the audience's choices, and moderately reduce the number of American films imported," the NFA said on its website.

China was once looked to by Hollywood to help boost the box office performance of movies, since the former is the world’s second-largest film market.

TRUMP SAYS HE'LL 'TAKE A LOOK' AT EXEMPTING SOME LARGER US COMPANIES HIT ESPECIALLY HARD BY TARIFFS

China’s domestic movies, though, are increasingly outperforming American movies shown in China. For instance, Pixar’s "Inside Out 2" was eclipsed by "Ne Zha 2," to become the highest-grossing animated film of all time, Reuters reported.

Hollywood movies now only scout for 5% of the overall box office recipes in China. Hollywood studios also only receive 25% of ticket sales in China, though in other markets, they take in double their profits.

It is not clear if China will allow several major blockbusters expected to hit the screen this year.

DONALD TRUMP'S ALLIES, SUPPORTERS AND DONORS, LED BY ELON MUSK, PUSH TO END TARIFF WAR

Walt Disney recently received permission to debut the new Marvel superhero movie, "Thunderbolts" on April 30, but others like Tom Cruise’s "Mission Impossible – The Final Reckoning" and James Guns’ "Superman," could be in jeopardy.

The news comes after the White House said Thursday it had imposed 145% in new tariffs on China, up from the 125% Trump announced the day before.

While hiking rates on China, Trump said he would reduce tariffs on other countries that did not retaliate against the U.S. to his baseline of 10%.

Reuters contributed to this report.

• After being called back to the office, IRS workers have been battling with a lack of workspace and spotty internet.
• BI spoke to eight employees who said the RTO mandate has been the opposite of efficient.
• Some also spoke of data privacy fears due to working in substandard office conditions.

Tax season is a source of angst for many Americans. This year, Internal Revenue Service employees who have returned to the office are in the same boat.

Amid the agency's return-to-office mandate, which has been a priority for the White House DOGE office, workers said they've operated out of conference rooms and cafeterias, battled spotty internet connections, and navigated boxes of paperwork scattered throughout the halls.

"It was a huge mess," one IRS employee told Business Insider. "There's no space for everyone and no exceptions for this RTO."

BI spoke with eight IRS employees who were granted anonymity. While they said it had come with certain upsides, like leaving work at the office, many said the return had been tumultuous and the opposite of efficient.

"People are not happy, and it's going to affect productivity going forward," one employee said.

Productivity is one thing, but taxpayer privacy — especially with a looming April 15 filing deadline — is another. With workers crammed into conference rooms, one told BI, "You have to be careful who can see over your shoulder or if the person next to you can see what you're doing."

The Treasury Department was "making every effort to return our entire workforce to meaningful in-person work quickly," a spokesperson told BI. "Bureaus and offices are fast-tracking high impact building improvements and rearranging workspaces as quickly as possible to make this return to office as seamless and comfortable as possible.

"That said, about 5,000 IRS employees nationwide do not currently have an adequate workspace within a 50-mile commuting radius."

Those employees are exempt from the return to office until the Treasury finds "a safe and comfortable" space for them, the spokesperson said. The IRS employed about 99,000 people as of September, according to the Office of Personnel Management.

A spokesperson for DOGE did not respond to a request for comment.

'The opposite of efficiency'

President Donald Trump has said that federal employees working remotely are "not very productive" and "most of the time they're not working." He's not alone: JPMorgan CEO Jamie Dimon has said that employees working remotely are "not paying attention." (Some research has found that RTO policies don't necessarily spur productivity and can sometimes stifle innovation.)

In late February, the IRS sent an email saying all employees within 50 miles of an office were required to return to in-person work five days a week. The email, viewed by BI, added that all remote work agreements would be canceled.

"Working together in-person with one's team fosters meaningful collaboration, mentorship, and comradery," the email said.

Workers returned to the office on March 10. One employee told BI when they showed up to their assigned workspace, another worker was sitting there, leaving them to work out of a conference room all week. They said the WiFi was "absolutely horrible," and calls kept dropping. When a cubicle finally opened up, there wasn't any office equipment, they said.

"All day I was trying to get a monitor, docking station, and keys for all the locks," the employee said, "a complete waste of time and the opposite of efficiency."

Efficiency challenges at the IRS aren't new. BI reported in 2022 that a local IRS office in Austin had a cafeteria stuffed with boxes filled with paper returns while the agency grappled with backlogs from understaffing.

Several employees who spoke with BI were concerned about taxpayer security because of what they described as substandard working conditions. They said that while protecting taxpayer information is prioritized in training sessions, returning to the office presents some risks that weren't prevalent before COVID-19. Because some employees were given the option of telework at the time, fewer people were in the office. Now, that option is gone.

"Employees aren't allowed to see taxpayer data that they haven't been assigned," one IRS worker said. "That takes finesse if you're in a conference room with 10 to 15 other people."

Taxpayer privacy and security are "drilled into every employee," the worker said, and they're baked into the agency's institutional culture — not to mention its legal responsibilities.

"We are currently in an environment with heightened risks to taxpayer privacy," Brandon DeBot, policy director at New York University's Tax Law Center, said in an email.

DeBot said several factors present risks, including "DOGE affiliates' unprecedented and extraordinarily broad requests for access to tax data; large-scale layoffs of IRS employees; and the removal and replacement of top IRS personnel."

'Nothing is going to get the public more pissed off'

An IRS employee told BI that former President Joe Biden's Inflation Reduction Act, which increased IRS funding to mitigate staffing issues, would continue to support the agency in carrying out its responsibilities during tax season.

In a February email, the IRS told employees that it would retain staff critical to the tax filing season as it underwent workforce reductions. As one employee put it, "Nothing is going to get the public more pissed off" than cutting resources during tax season.

Another employee said they felt that Treasury Secretary Scott Bessent "is smart in that he won't heavily affect taxpayer-facing positions or positions that carry out critical processes like returns."

The Treasury Department announced its second deferred-resignation offer to agency employees on April 7. The email announcing the offer, viewed by BI, said some employees were deemed "mission critical" and ineligible to participate.

Still, the IRS fired about 7,000 probationary employees in February before the RTO mandate went into effect, and another round of workforce reductions at the agency is expected in the coming weeks.

Top staffers have also left the IRS over the past three months, which has added to the chaos. The Treasury Department confirmed to BI that Melanie Krause, the acting commissioner, is leaving the agency as early as May 15.

For those who remain, the RTO would likely make things more difficult as agency work picked up.

"Half my team works in other states, so being in an office doesn't facilitate collaboration with them," one employee said. "The office is unfit for work in a whole lot of ways."

The employee added that their workstation was near a worker who didn't have a headset, which meant listening to their coworker's conference call for an hour. They added that some of the workstations had items left behind by former employees — both personal items and old work documents — and that, at one point, there were "hundreds of storage boxes full of paper documents" lining the halls by some cubicles.

Workers were told not to bring personal equipment into the office — only IRS-distributed equipment, per an email reviewed by BI.

"None of this is to drive efficiency or productivity," one employee said, "or the ever-popular word used for every RTO mandate, which is collaboration."

Have a tip or story to share? Contact this reporter via email at asheffey@businessinsider.com or Signal at asheffey.97. Use a personal email address and a nonwork device; here's our guide to sharing information securely.

Finding love in Washington state could come with a price. 

A bill proposed by two state Democratic lawmakers would impose a tax on dating apps.

Under the terms of House Bill 2071, dating app companies would be required to pay $1 per Washington-based user each month, regardless of whether the user pays for the service. The money would be used to fund domestic violence programs. 

The money would be put into the newly created state Domestic Violence Services Account, which funds intervention programs and support services for victims.

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The only users excluded are those with inactive accounts for at least 24 months. 

Fox News Digital reached out to the offices of state representatives Lauren Davis and Shaun Scott, both Democrats, who are behind the legislation. Fox News Digital also reached out to several dating app companies for reaction. 

"Online dating companies can determine how to absorb the cost," Davis told Fox News Digital. "They could simply cut it out of their profits, or increase the fees for paid users by $1/month or possibly begin charging for free users (though the latter is probably less likely)."

The bill targets dating apps like Hinge, Match.com, Bumble and Tinder. The legislation had its first reading Tuesday and has been referred to the state House Finance Committee. 

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Funding for domestic violence programs is necessary after lawmakers in 2023 passed HB 1169, which removed the Crime Victim Penalty, which was paid for by those convicted of crimes. The CVP provided the primary funding for victim advocates who work in prosecutors' offices, Davis said.  

"When HB 1169 was passed, the state made a commitment to backfill the funding loss from the CVP with general fund state (GFS) dollars," she said. "Unfortunately, the state has not kept this commitment. Prosecutors' offices across the state have been forced to lay off victim advocates, and scores of victims are no longer receiving victim advocacy services."

Davis explained that her bill is intended to replace the missing funds.

She further criticized Washington's legal system, calling it "a nightmare for victims."

"The system is designed for the protection of defendants, not victims," she said. "I cannot fathom how I would've ever navigated the system successfully without a victim advocate, and I am rightly horrified that similarly situated victims will no longer receive help.

"The purpose of this tax proposal is to keep the state's promise to crime victims and not defund victims services," she added. "Though a nexus is not required for a tax as it is for a fee, there is a reasonable nexus between online dating apps and domestic violence."

• Selling a property for profit typically results in paying capital gains tax.
• But there are ways to defer or avoid capital gains tax altogether.
• If you own property, look into 1031 exchanges and the Section 121 exclusion.

If you sell a property for more than you purchased it for, you'll typically owe capital gains tax on the profit.

The amount depends on factors like how long you owned the property and your taxable income, but it could be as high as 37% if you sell within a year and trigger short-term capital gains.

You could also avoid capital gains tax completely. CPA Kristel Espinosa highlighted two IRS rules that all property owners looking to reduce their tax bill should familiarize themselves with.

1. Defer taxes indefinitely with a 1031 exchange

A 1031 exchange — sometimes called a "like-kind" exchange — allows investors to avoid capital gains tax if they swap one investment property for another one of equal or higher value. This rule is specifically for investment properties, not for primary residences or vacation homes.

"It's a way to defer capital gains by reinvesting the proceeds into a like-kind property," said Espinosa, noting that this strategy is best for investors who plan to buy and hold real estate for the long term.

"It's not meant for people who just want to purchase real estate, flip it real quick, and then get another one. The whole point is getting the gain to be deferred into the future, so if you're constantly buying and selling and flipping properties, this 1031 game doesn't work."

You'll pay capital gains tax when you sell for good — there's no limit to the number of 1031 exchanges you do — but you can theoretically avoid capital gains tax indefinitely if you continue re-investing in like-kind rentals.

Espinosa said her clients use this strategy to diversify their portfolio or upgrade to a property with better cash flow.

There's a strict time limit on 1031 exchanges: You must identify your replacement property (or properties) in writing within 45 days of selling the first property. Then you must close on the replacement property within 180 days of your initial property sale.

Investor Zeona McIntyre told BI how she used a 1031 exchange to upgrade from a small, short-term rental property in St. Louis to a multifamily in Florida that produced stronger cash flow.

"A 1031 exchange allows you to defer your tax burden; a lot of people think, 'Oh, I don't pay any taxes,' but you're technically kicking the can down the road," McIntyre said. "The cool thing, though, is that you can do unlimited 1031 exchanges and infinitely kick it down the road. And then when you pass away, if you pass that on to someone else, like your children or a family member, the inherited home does not have the tax burden anymore. So it dies with you."

Another investor spoke to BI about his attempted 1031 exchange that ultimately failed because of the tight 180-day timeline.

"In my opinion, that's not enough time. I felt like I was rushed," said Steve Lewis, who owns properties in New Jersey and ended up walking away from the exchange and paying capital gains tax on the sale.

His major takeaway was that 180 days go by faster than you may think. While his failed 1031 experience may be "rare," he said, "there are so many things that could delay a closing." If you plan to do an exchange, his advice is to plan ahead as much as you possibly can for the next property purchase.

2. Exclude up to $500,000 of the gain of a home sale with the 121 exclusion

If you're a homeowner looking to sell, you may benefit from the Section 121 Exclusion, an IRS rule that lets taxpayers exclude up to $250,000 of the gain from the sale. A couple filing jointly can exclude up to $500,000. If you're an individual and sell your home for a gain of $200,000, for example, you won't have to pay capital gains tax on that amount.

There are a few stipulations: You must use the home as your primary residence for at least two of the five years preceding the sale. If you're selling a vacation home, for example, you can't use the exclusion. You can also only use the exclusion every two years.

This rule won't be applicable to new homeowners, said Espinosa, but it's a good option for people who have been in their primary residence for years and are looking to sell — and even applies to people who have turned their primary residence into a rental, as long as they satisfy the two-out-of-five-year rule. The two years don't have to be consecutive.

If your home profits more than $250,000 as an individual or $500,000 as a couple, you'll pay capital gains tax on the amount that exceeds the limit.

One couple explained to BI how they used the exclusion to avoid capital gains tax on each of their property sales. For years, Carl and Mindy Jensen did "live-in flips," in which they would live in a property while renovating it. They made sure to live in the property for at least two years to capitalize on the tax rule — at that point, they'd sell, avoid capital gains tax, and start their next live-in flip.

They used the exclusion for the first time in the early 2000s when they bought a home for $135,000, upgraded the carpet, walls, and bathrooms, and sold it for $235,000.

"Because we lived in it and owned it for two of the past five years, we paid no taxes on the capital gains," said Mindy. While their gains were around $100,000, they could have excluded up to $500,000 since they were both on the title.

"And then we did it again," she said. "We bought another house for $265,00 and sold it for $365,000, so we made another 100,000."

Thanks to the IRS rule, that $100,000 was also shielded from taxes.

There is serious consternation among House conservatives about the updated budget framework the Senate approved early Saturday morning for the tax cut and spending cut package.

Fox is told there are at least 5-10 House Republicans who cannot support this plan. The reason is that the measure doesn’t cut nearly enough spending to satisfy conservatives.

President Trump has signaled that he wants the House to accept the Senate’s blueprint. But these House conservatives are adamantly against it. We’ll see if they fold.

REPORTER'S NOTEBOOK: POWER PLAYER ON CAPITOL HILL

Fox asked one archconservative if pressure by President Trump would get them to come around. Fox was told they wouldn’t do so this time.

House Speaker Mike Johnson (R-La.) has set Wednesday as the day for the House to vote on the new framework. Fox is told that the House wants to do it Wednesday – in case GOP leaders need to take a mulligan and try again later in the week.

It’s about the math.

Here’s the current House breakdown:

433 members. 220 Republicans. 213 Democrats.

That means Republicans can only lose three votes and still pass a bill if all House Members cast ballots.

REPORTER'S NOTEBOOK: THE GAME OF DEATH

Here’s why the framework is so important:

The House and Senate must be on the same page and adopt the same budget blueprint in order for the Senate to use a process called "budget reconciliation" to avoid a filibuster. A filibuster would kill the bill because Republicans lack 60 yeas to break a filibuster in the Senate. So they have to use budget reconciliation. The House and Senate cannot delve into the guts of the "big, beautiful bill" until they both adopt the same budget framework. Otherwise, they are dead in the water.

The Senate prepped a measure which didn’t include cuts as deep as demanded by the House for a reason. First, such deep cuts would never command the necessary votes to pass the bill in the Senate. Secondly, Senate Republicans are bound by special budget rules. Thus, their cuts can’t be as deep. However, Senate GOP sources have repeatedly told Fox that they are trying to establish a "floor" for cuts. Not a "ceiling."

The budget framework already has a fraught legislative history.

The Senate approved its initial blueprint in February. The House approved a different framework a week later. But they were different documents.

So, the Senate approved yet another version over the weekend. The House now needs to align with the Senate – or approve something different.

Either way, the House and Senate are not on the same page. And they cannot begin dealing with the actual bill until they are. After two "vote-a-ramas" in the Senate (where senators vote round-the-clock for hours on a budget measure), some Senate GOPers have indicated that the Senate would not do a third vote-a-rama. Moreover, Johnson has set a deadline of Memorial Day to pass the plan.

One item expected to be included in the package: a debt ceiling increase. The Senate budget package hiked the debt ceiling by $5 trillion. Considering volatility in the markets and overall economic uncertainty, there is concern that Congress may need to address the debt ceiling sooner rather than later. The current estimation is that lawmakers have until summertime to address the debt ceiling. But there could be problems if Congress can’t greenlight any bill to address the debt ceiling – this one or something else.

While senators Chuck Schumer, D-N.Y., and Ben Ray Luján, D-N.M., cited economists' projections that President Donald Trump's tariffs will cost American families an extra $5,000 per year, GOP Sen. John Kennedy, R-La., insisted, "We don't know," suggesting those who claim they do are making fools of themselves. 

"I followed what all these economists are saying. Most of them make these late-night psychic hotlines look respectable," Kennedy told Fox News Digital at the Capitol. "They don't know any more than anybody else. We're in uncharted waters here."

According to Schumer and Luján, Americans can likely expect to see costs rise enough to equate to a $5,000 per year tax on American families.

STEPHEN MILLER SAYS AMERICANS HAVE TO UNDERSTAND HOW ‘BADLY’ WE'VE BEEN RIPPED OFF AS A COUNTRY

"When the average American family sits down and tries to figure out how they're going to pay for things, and they hear they may pay $5,000 more than they've had to pay before — and they may not be able to buy a new car, they may not be able to support that new drug that grandma needs, they may not be able to take that vacation they were planning for a year — they're going to be outraged," Schumer told reporters. 

"It's a huge tax on American families. All – all – to help billionaires get a tax cut."

Luján seconded the sentiment from Schumer, pointing to the economists that Kennedy blasted as less respectable than a "late-night psychic hotline." 

TRUMP'S CHINA TARIFFS FACE LEGAL CHALLENGE FROM CONSERVATIVE GROUP CALLING THEM ‘UNLAWFUL’

"There's no question that the American people are the ones that are going to be paying the brunt of this," Luján argued. "The actuaries that have been putting out reports and other economists are suggesting that this is going to be a national sales tax on the American people of about 5,000 bucks year. That's just not right.

"If the president would be open to using targeted tariffs as a tool — something that I'm open to and I think others are — that's one thing," Luján added. "But when he's arbitrarily just going across the board and trying to slap on numbers … I'm very concerned for my constituents that are going to be paying out of pocket."

Kennedy argued such projections had no basis in fact.

"The truth is we don't know. These economists don't know," Kennedy insisted. "These are uncharted waters. We've not had these kind of tariffs in a long time. It may be a net positive. President Trump implemented tariffs in his first term. Didn't seem to hurt the economy. It could be a negative. All I'm saying is that in Washington, D.C., for every economist, there's an equal and opposite economist, and they're usually both wrong."