Politico reports that Rep. Richard Neal is already laying the groundwork for a possible Democratic House majority after this fall’s midterm elections. In the House, a change in the majority party would mean more congressional oversight of the Trump administration. Oversight topics might include IRS information-sharing practices with ICE and Frank Bisignano’s novel IRS CEO role.
But there’s also the possibility of significant tax legislation. With a potential debt limit increase on the horizon for 2027, there may be space for potential bipartisan deals on the now-expired enhanced Obamacare premium subsidies, energy tax credits, and the Work Opportunity Tax Credit. Links and more—including a major update on redistricting—below the fold.
Bernie Becker, Plotting the Comeback, Politico (May 11, 2026):
Neal could easily try to strike a bipartisan tax deal if he becomes chair again, though it’s tough to fully game that out right now, given that it’s not clear who will run the Senate next year and whether some year-end tax agreement materializes in 2026.
At the same time, much of the Democratic energy on taxes beginning in 2027 will focus on sharpening the party’s tax-the-rich platform ahead of the next presidential election . . . .
Brian Faler, Neal Plans Broad Tax Agenda if House Control Changes, Politico (May 11, 2026):
Another big change in the offing: There will be a lot more women in charge [if Democrats win control of the House in the 2026 midterms].
Thanks to seniority, there could be, for the first time, women running four of the panel’s six subcommittees: Reps. Linda Sanchez of California, Terri Sewell of Alabama, Suzan DelBene of Washington and Judy Chu of California. Currently, there are none.
Of course, Democrats’ tax agenda depends on the threshold political question: whether the party actually can retake the House. Politico and the New York Times report that recent redistricting developments may make that path more difficult.
Andrew Howard, Democrats Just Lost the Redistricting War, Politico (May 8, 2026):
There’s every reason to believe the House will still go to Democrats, who need to flip just three GOP-held seats. . . .
But conversations with more than a dozen Democrats across the country on Friday made one thing clear: The road to a House majority in November is harder than before [after the U.S. Supreme Court’s decision in Louisiana v. Callais and the Virginia Supreme Court’s decision in Scott v. McDougle].
Nate Cohn, Republicans Are Building an Advantage in Redistricting. How Much Is It Worth?, N.Y. Times (May 8, 2026):
The redistricting wars heading into the November midterm elections had been in a stalemate . . . .
It’s not a stalemate anymore. Over just the last two weeks, new court rulings and new congressional maps have put Republicans on track to add more than a dozen districts that voted for President Trump. It would be enough for Republicans to obtain a significant structural advantage in the House of Representatives . . . .
Related TaxProf Blog coverage:
- Reconciliation 2.0, Meet the Smaller IRS (Apr. 18, 2026)
- Politico: IRS CEO Defiant as Washington Asks Who’s Running Things (Apr. 4, 2026)
- Bessent’s Term as Acting IRS Commissioner Expires (Mar. 14, 2026)
- ICE and the IRS: Inadvertent Disclosures Edition (Feb. 21, 2026)
- ICE and the IRS: Preliminary Injunction and Other Updates (Nov. 22, 2025)
- Senators Question Legality of IRS CEO Position (Oct. 29, 2025)
- ProPublica: The IRS Is Building A Vast System To Share Taxpayer Data With ICE (July 17, 2025)
- IRS Nears Deal To Give ICE Addresses Of Immigrants Targeted For Deportation (Mar. 1, 2025)
