Republican lawmakers are pushing back against the Biden administration’s plan to join a global compact implementing a tax on U.S. corporations regardless of where they operate.
One hundred and thirty six136 countries agreed Friday to implement a global business tax, and G-7 finance leaders agreed to the plan Saturday. President Joe Biden and Treasury Secretary Janet Yellen praised the plan.
Proposed by the Paris-based Organization for Economic Co-operation and Development (OECD), an intergovernmental economic organization, the global tax is necessary to respond to an “increasingly globalized and digital global economy,” OECD said.
U.S. Trade Representative Katherine Tai said the Biden administration would enforce the Phase One trade agreement negotiated by the Trump administration with China while giving a speech at the Center for Strategic and International Studies on Monday.
“For too long, China’s lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world,” Tai said in prepared remarks. “China made commitments that benefit certain American industries, including agriculture, that we must enforce.”
China has fallen short on the purchase totals it agreed to as part of the agreement, increasing its purchases by only 69% as of July 2021, according to the non-partisan Peterson Institute for International Economics (PIIE).
Facebook knowingly chooses to prioritize its profits over the safety of its users, Frances Haugen, a whistleblower and former Facebook employee, said in an interview with “60 Minutes” on Sunday.
“The thing I saw at Facebook over and over again was there were conflicts of interest between what was good for the public and what was good for Facebook,” Haugen told Scott Pelley on “60 Minutes” Sunday night. “And Facebook, over and over again, chose to optimize for its own interests, like making more money.”
Haugen, a former Facebook product manager, leaked thousands of internal company documents to The Wall Street Journal last month which detail the inner workings of the company. The leaked documents showed that Facebook employs a separate content review system for high-profile accounts, the company has conducted research into the harms its Instagram platform has on teen users, and it stokes controversy by boosting inflammatory content.
A major component of President Joe Biden’s plan to raise revenue to pay for his trillions of dollars in new federal spending is now under fire from trade associations across the country.
The Biden administration has made clear its plan to beef up IRS auditing by expanding the agency’s funding and power. Biden’s latest proposal would require banks to turn over to the Internal Revenue Service bank account information for all accounts holding more than $600.
In a sharp pushback against the proposal, more than 40 trade associations, some of which represent entire industries or economic sectors, signed a letter to U.S. House Speaker Nancy Pelosi, D-Calif., and Minority Leader Kevin McCarthy, R-Calif., raising the alarm about the plan.
Rising inflation and the price increases that come with it may lead to the highest raise for senior citizens in decades.
The Senior Citizens League predicted Thursday that the annual cost-of-living adjustment for 2022 Social Security payments could be the highest since 1983. The prediction comes as federal data this week showed two major signs of inflation, continuing a trend that has worsened this year.
“The estimate is significant because the COLA is based on the average of the July, August and September CPI data,” said Mary Johnson, a Social Security policy analyst for The Senior Citizens League. “With one third of the data needed to calculate the COLA already in, it increasingly appears that the COLA for 2022 will be the highest paid since 1983 when it was 7.4%.”
President Joe Biden has proposed amending the inheritance tax, also known as the “death tax,” but farmers around the country are raising concerns about the plan.
In the American Families Plan introduced earlier this year, Biden proposed repealing the “step-up in basis” in tax law. The stepped-up basis is a tax provision that allows an heir to report the value of an asset at the time of inheriting it, essentially not paying gains taxes on how much the assets increased in value during the lifetime of the deceased. This allows heirs to avoid gains taxes altogether if they sell the inheritance immediately.
Under Biden’s change, heirs would be forced to pay taxes on the appreciation of the assets, potentially over the entire lifetime of the recently deceased relative.
A new executive order from the Biden administration has accelerated the timeline for electric vehicles and raised questions about the economic impacts of the transition away from gas-powered vehicles.
President Joe Biden signed the executive order Thursday aimed at making 50% of vehicles zero emission in the U.S. by 2030, an aggressive push toward electric vehicles. About 2% of new cars sold each year in the U.S. are currently electric, according to the Pew Research Center.
“The Executive Order also kicks off development of long-term fuel efficiency and emissions standards to save consumers money, cut pollution, boost public health, advance environmental justice, and tackle the climate crisis,” the White House said.
More than 800 businesses and business associations are jointly urging the Virginia General Assembly to approve a budget item for $291 million in relief to the travel and hospitality industries, which was proposed by Gov. Ralph Northam.
Northam’s proposal would appropriate funds from the federally passed American Rescue Plan to help these industries bounce back from losses caused by the COVID-19 pandemic and subsequent economic restrictions. The General Assembly is scheduled to meet on Aug. 2 to consider the budget proposal.
The businesses and business associations signed a joint letter showing their support. It includes the Virginia Chamber of Commerce and the Virginia Restaurant Lodging and Travel Association.
A new Democratic proposal to increase the capital gains tax could cost 745,000 jobs, a study published by the Regional Economic Models Inc. (REMI) projects.
The Sensible Taxation and Equity Promotion (STEP) Act, which would tax unrealized capital gains when heirs inherit assets, among other things, would have a “significantly negative impact” on the economy, including average job losses of 745,000 over 10 years, the report found.
The analysis, conducted for the Committee to Unleash Prosperity, found that sustained annual job losses from eliminating a tax benefit on appreciated assets known as the step-up in basis could eliminate between 537,000 to 949,000 jobs, with models predicting a base of 745,000 lost jobs through 2030.
The country is opening up and travel is increasing, but visitors are finding the rental car landscape a bit empty.
Rental car companies are continuing to have a hard time keeping up with demand after selling off fleets to stay afloat during the pandemic.
“The fundamental thing that’s causing it is the very rational corporate response to the pandemic and the almost shutting down of international and domestic travel for most of 2020 and the first half of 2021,” Gregory Scott, spokesperson for the American Car Rental Association (ACRA), told The Center Square. “Airport rentals dropped 70-90% in March and April of last year, and as a result there were literally tens of thousands of vehicles sitting unrented and unwanted because people stopped traveling.”
Federal Reserve Chairman Jerome Powell tried to calm lawmakers’ fears about rising inflation but also said it would probably remain elevated for months to come.
Testifying before Congress this week, Powell said the Federal Reserve was willing to step in to address the situation, but that inflation should level out next year.
“As always, in assessing the appropriate stance of monetary policy, we will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if we saw signs that the path of inflation or longer-term inflation expectations were moving materially and persistently beyond levels consistent with our goal,” Powell said in his prepared testimony.
Paying college athletes has been a hotly debated topic for years, but now the U.S. Supreme Court has released a ruling on the issue.
A group of current and former student athletes brought the lawsuit against the National Collegiate Athletic Association, arguing that the organization violated antitrust laws when it prevented student athletes from accepting certain education-related benefits.
The case, filed in 2018, challenged the NCAA and the biggest conferences including the Pac-12, Big Ten, Big 12, SEC, and ACC. The Supreme Court ruled unanimously in favor of the students Monday, saying the NCAA could not deny those benefits, which could include things like “scholarships for graduate or vocational school, payments for academic tutoring, or paid posteligibility internships.”
Gov. Ralph Northam intends to let the COVID-19 pandemic state of emergency expire June 30, which could affect mask wearing throughout the commonwealth and the remaining restrictions on businesses.
Virginia law normally prohibits a person from covering one’s face with the intent of concealing one’s identity in public spaces, which was put on hold during the state of emergency. According to the Virginia code, a person can only wear a mask in certain situations, which include a legitimate medical reason when advised by a physician or during a health-related state of emergency when the governor expressly waives this section of law.
With the governor ending the state of emergency, it’s unclear whether wearing a mask in public could be grounds for prosecution absent a doctor’s note. The governor has said a person would not be prosecuted for wearing a mask and that he has been in contact with police groups that told him police would not arrest anyone for wearing a mask. The provision that states a person would only be guilty when intending to conceal his or her identity with the mask could be difficult to prove when a person is simply following guidelines from the governor’s office and the Center for Disease Control.
The Virginia Department of Motor Vehicles is gradually expanding its appointment opportunities this month and next month now that most of the COVID-19 pandemic restrictions have come to an end.
Starting June 1, the DMV opened 184,000 additional appointment opportunities and the department will open up more appointments June 15 and again in July. Residents can secure their slots for the June 15 appointment expansion at this time. The department is hiring and training new employees to keep up with the higher number of appointments.
“Virginians have told us they appreciate the convenience and high quality service the appointment system affords,” Commissioner Richard D. Holcomb said in a news release at the time of the announcement. “The Governor’s announcement … enables us to open more windows so customers can secure appointments sooner, but we are still taking great care to offer service that is safe for everyone.”
Americans in the first quarter of 2021 continued their 2020 pattern of moving from expensive, densely populated areas to warmer, more tax-affordable states, according to a new study from Updater Technologies.
Updater Technologies is an online platform that allows people to use a centralized hub for moving, including finding a moving company, connecting internet and utility services and updating their address. The company says the inbound and outbound data it uses is more reliable than tabulating mail forwarding forms because it captures fully completed permanent moves in real time. It also indexes cities and states based on population, since using raw numbers would skew toward the most populated areas based on sheer volume.
Out of roughly 300,000 household moves during the first quarter, only 16 states had a greater percentage of inbound moves than outbound: Nevada, South Carolina, Tennessee, Arizona, Florida, Texas, North Carolina, Colorado, Georgia and Maine.
Packaged tuna manufacturer Starkist is closing up its headquarters in Pittsburgh and moving to northern Virginia, but most of the details about the move have not been revealed.
Starkist will close its office in the North Shore of Pittsburgh on March 31, 2022, but will maintain a presence in the area. Its new headquarters will open in northern Virginia in 2022, but the company did not say in which locality.
The company did not announce the reasons for its relocation. No announcements have been made related to taxpayer-funded subsidies or other incentives, which could be part of a deal.
Starkist has been owned by South Korea-based Dongwon Industries since 2008. It employs about 2,630 people and generates more than $24 million in revenue, according to Zippia.
As President Joe Biden promotes his several trillion dollars in proposed federal spending, Republicans and small businesses are raising the alarm, arguing the taxes needed to pay for those spending plans are a threat to the economy.
The House Ways and Means Committee met Thursday to discuss infrastructure development and in particular the impact of proposed tax increases to pay for it. Rep. Kevin Brady, R-Texas, the ranking member on the committee, argued that only 7% of Biden’s proposed infrastructure bill goes to infrastructure and that raising taxes would incentivize employers to take jobs overseas.
“As bad as the wasteful spending is, worse yet, it’s poisoned with crippling tax increases that sabotage America’s jobs recovery, hurts working families and Main Street businesses, and drives U.S. jobs overseas,” Brady said. “We cannot fund infrastructure on the backs of American workers.”
Congressional Republicans grabbed headlines this week after releasing an aggressive budget they say would cut taxes and spending, but key measures in the plan also would address one of the country’s most serious economic problems.
The House’s Republican Study Committee released a budget that lays out several measures to deal with inflation, a growing concern among economists after the latest federal data showed a spike in consumer prices. Notably, the index for used cars and trucks rose 10%, the largest one-month increase since BLS began recording the data in 1953. Food and energy costs rose 0.9% in the month of April, prescription drugs rose 0.5%, and gasoline rose 1.4% during the same month. The energy cost index rose 25% in the previous 12 months.
Republicans on the committee say their plan would address concerns over inflation by balancing the budget within five years, thereby eliminating the need to monetize debt, a process where the federal government prints money to make payments on what it owes. The national debt has soared to more than $28 trillion and is expected to continue climbing under President Joe Biden’s new spending plans.
In 2019, Florida homeowners accounted for 8.16 percent of the nation’s property insurance claims, but more than 76 percent of property insurance lawsuits lodged against insurers.
Pointing to this “disparity,” Florida Insurance Commissioner David Altmaier in a five-page April 2 letter to House Commerce Committee Chair Rep. Blaise Ingoglia, R-Spring Hill, outlined four proposals to reduce property insurance litigation.
Insurers cite rampant litigation, ballooning reinsurance costs, “loss creep” from 2017-18 hurricanes and coastal flooding as a “perform storm” of coalescing factors leading to double-digit property insurance rate hikes that Florida businesses and 6.2 million homeowners are seeing or will see when renewing policies.
After states shut down schools and forced families into virtual learning, parents and families found new ways to provide K-12 education to their children. While doing so, support for school choice options soared, a new poll from Real Clear Opinion Research found.
Among those surveyed, 71% said they support school choice, which is defined as giving parents the option to use the tax dollars designated for their child’s education to send their child to the public or private school that best serves their needs. Across all racial and ethnic demographics, an overwhelming majority expressed support for school choice: Blacks (66%), Hispanic (68%), and Asian (66 percent).
These results “were the highest level of support ever recorded from major AFC national polling with a sample size above 800 voters,” the survey states.
An estimated 46 million people — or 18% of the country — would be unable to pay for health care if they needed it today, a recent poll conducted by Gallup and West Health found.
In another survey by the Texas Public Policy Foundation, the majority of hospitals in the U.S. have yet to comply with a transparency ruling implemented this year that would help patients shop around for the most affordable prices.
Gallup’s findings are based on a poll conducted between February 15 and 21 among 3,753 adults with a margin of error of 2%.
Virginia businesses will benefit from the federal government extending the deadline to apply for Paycheck Protection Program forgivable loans, according to associations representing industries.
With bipartisan support, federal lawmakers passed legislation to extend the loan application from March 31 to May 31 and give the Small Business Administration an additional 30 days to process the applications. The legislation is expected to be signed by President Joe Biden.
The loans allow businesses economically harmed by the COVID-19 pandemic and subsequent economic restrictions to borrow money from the federal government. If businesses use the money in accordance with federal guidelines, the loans will be forgiven, meaning that the businesses will not have to pay the money back.
A bill that would require local governments to approve extensions of public health emergency orders after 15 days is ready for adoption by the Missouri House.
House Bill 75, sponsored by Rep. Jim Murphy, was perfected Wednesday in a floor debate and awaits only a floor vote to be transferred to the Senate, where a raft of similar bills are matriculating in committees.
HB 75, which has already passed through the House Special Committee on Small Business and Rules – Legislative Oversight committees, would allow local public health officials to order a closure for no more than 15 days.
Last summer, millions of dollars in taxpayer money were spent in response to protests that turned violent throughout Ohio. A bill proposed in the Ohio Senate looks to make sure those responsible will pay for it.
Senate Bill 41, currently being discussed by the Senate Judiciary Committee, calls for restitution from those who are convicted of property damage during riots, including vandalism. The restitution would pay the expenses of police and emergency crews who have to respond to riots. The bill also allows the government to take possession of any property left behind by those who end up convicted.
State Senator Tim Schaffer, R-Lancaster, is sponsoring the bill. Lou Tobin, the Executive Director of the Ohio Prosecuting Attorneys Association, offered his support before the committee recently.