Fiscal Policy

What’s Next on Democrat’s Tax Agenda?

Update 631 — Overhaul Talks Over for Now,What’s Next on Democrats’ Tax Agenda? When Congress passed and President Biden signed the Inflation Reduction Act into law, numerous tax provisions were included — increased funding for the IRS, a 15 percent corporate minimum tax, a 1 percent excise tax on stock buybacks — but they did …

What’s Next on Democrat’s Tax Agenda? Read More »

IRA Secures 50 Votes, en Route to Passage

Update 626 — Democratic Reconciliation:IRA Secures 50 Votes, en Route to Passage Facing an August recess deadline, Democrats in Congress are on the verge of fulfilling their economic policy promise, bringing a hitherto elusive unity to a reconciliation bill and a Senate floor vote as soon as procedurally possible. The leap forward shows lessons learned: …

IRA Secures 50 Votes, en Route to Passage Read More »

COMPETES Hit an Obstruction Named Mitch

Update 621 — COMPETES to Pass Sans HitchHit an Obstruction Named Mitch; Now What? Two weeks ago — amid extensive conference committee deliberations — Sen. Mitch McConnell announced his intention to block bipartisan negotiations on a USICA/COMPETES bill, industrial policy legislation aimed to compete with China, if Senate Democrats continued to pursue a “partisan reconciliation …

COMPETES Hit an Obstruction Named Mitch Read More »

Financing the Final Quit

Update 617 — Financing the Final Quit:But Are Retirement Bill Fixes Equitable? America’s population is aging. Since 2010, there has been a sizable 34 percent increase in the 65-and-older population, the fastest-growing of all age cohorts. Retired Americans receive most of their income through government-sponsored income transfers or through income tax deductions and deferral. And, …

Financing the Final Quit Read More »

How Underfunding Defeats Its Fiscal Goals

Update 614 — Penny Wise, Pound FoolishHow Underfunding Defeats Its Fiscal Goals The unrelenting underfunding of vital federal agencies continues unabated, even as the FY23 is being negotiated on the Hill. This is thanks to fiscal policy made by default, without a fiscal policy future in mind. Rather tight domestic federal budgets fiscal and policy …

How Underfunding Defeats Its Fiscal Goals Read More »

Rapid Return to Pre-COVID Fiscal Status

Update 610 — CBO: A Mean ReversionRapid Return to Pre-COVID Fiscal Status Yesterday’s CBO report projects this year’s deficit will fall by $1.7 trillion — the single largest nominal one-year reduction in the federal deficit in American history. The deficit this year will be lower than CBO projected it would be before the passage of the American …

Rapid Return to Pre-COVID Fiscal Status Read More »

Fiscal Policy Landscape

Update 608 — Fiscal Policy Landscape:Supps, Reconciliation, Payfors on Horizon Congress’s fiscal debate is currently being dominated by responses to a series of crises at home and abroad. Over the next few weeks, Congress will actively consider a range of supplemental spending bills from a Ukraine aid package, to bills addressing the baby formula shortage, restaurant aid, …

Fiscal Policy Landscape Read More »

Legislative High Season

Update 604 — Legislative High Season:100-Day Roadmap for Econ. Policy Bills Congress settles back after recess this week, facing a packed to-do list and a ticking clock. The appropriations process for FY2023 is under way. Again, Democrats’ immediate priority is reconciliation. Negotiations with Sen. Manchin focus now on climate and health provisions, but we saw …

Legislative High Season Read More »

Tax as a Class Act

Update 603 — Tax as a Class Act:Code’s Impact on Income Inequality This past Monday marked the end of tax filing season for 2022. Average Americans again find themselves paying a higher rate than wealthier filers. OMB estimates that the 400 wealthiest Americans pay an average tax rate of only 8.2 percent, widening inequality. Paying a higher tax …

Tax as a Class Act Read More »

Biden FY23 Budget

Update 597— Biden FY 23 Budget:Balance, Parity in Appeal to Center President Biden submitted his FY23 budget saying that budgets are statements of values. The statement here is muted, with an increase in domestic spending and an increase in military spending by about 10 percent, a puzzling nod to austerity of all things, investments in …

Biden FY23 Budget Read More »