ERC, Coinbase SEC Investigation, and U.S Economic Growth
Tax Policy:
September 14: Opinion: ERC Needs Clearer Guidelines; Not Elimination for Q4
The ERC is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and through December 31, 2020. As of January 1, 2021 the credit amount was increased to 70% of qualified wages paid from January 1, 2021 to December 31, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they must otherwise make. The credit can provide up to $5,000 for each full-time employee retained from March 13, 2020 to December 31, 2020 and up to $28,000 for each retained employee for January 1, 2021 to December 31, 2021.
September 14: How House Democrats Plan to Raise $2.9 Trillion for a Safety Net
Top Democrats on Monday released legislation that would raise as much as $2.9 trillion to finance President Biden’s social safety net package through a series of tax changes, including increasing the amount that the wealthiest Americans and corporations pay in taxes.
The legislation, released by the House Ways and Means Committee, amounts to an opening offer as Democrats in both the House and Senate try to cobble together pieces of Mr. Biden’s $3.5 trillion economic package, which would fund climate provisions, paid family leave, and public education.
The House bill proposes tax increases on wealthy corporations as well as individuals. But elements of the proposal are markedly different from what Mr. Biden initially proposed and what Senate Democrats have floated.
September 13: House Dems Float $2.9T In Tax Increases To Pay For Budget
House Democrats proposed a preliminary package of tax increases totaling $2.9 trillion Sunday that would offset the cost of new spending proposed in their party's fiscal 2022 budget bill the House Ways and Means Committee expects to approve by Wednesday.
September 11: House panel releases spending bill section on child tax credit, infrastructure financing
The House Ways and Means Committee late Friday released an additional tranche of its portion of Democrats’ $3.5 trillion social spending package, covering a wide range of issues such as the child tax credit, infrastructure financing, clean energy incentives, and health care.
The bill includes several provisions focused on tax-advantaged bonds, including the creation of a bond program that is similar to the Build America Bonds that were part of President Obama’s 2009 stimulus law.
The bill would extend a number of tax incentives for clean energy and would create new tax credits for electric vehicle owners.
Crypto News:
September 14: Gary Gensler Outlines SEC Agenda in Senate Hearing
Securities and Exchange Commission Chairman Gary Gensler on Tuesday testified to lawmakers about a far-reaching policy agenda that could shake up Wall Street firms’ business models and require heftier disclosures from public companies.
In prepared remarks to the Senate Banking Committee, Mr. Gensler emphasized the SEC’s mission of protecting investors. He also highlighted the challenges stemming from emergent technologies like cryptocurrency and sophisticated data analytics used by financial firms and urged lawmakers to beef up the SEC’s resources.
September 8: Coinbase says SEC investigating its crypto lending product
The chief executive of Coinbase claimed in a series of tweets Tuesday that the Securities and Exchange Commission (SEC) is investigating his company over an upcoming cryptocurrency lending program.
COVID and the Economy:
September 8: U.S. Economic Growth Slowed Over the Summer Due to Delta Variant, Fed’s Beige Book Says
The U.S. economic recovery slowed and prices continued rising over the summer as a resurgence of Covid-19 cases linked to the Delta variant led consumers to pare back spending and persistent supply chain problems hampered businesses, the Federal Reserve said in a report Wednesday.
“The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant,” the report said. The report, known as the Beige Book, collects anecdotes from businesses around the country.
September 7: The U.S. Expected an Economic Takeoff. It Got a September Slowdown
The U.S. economy is facing a slowdown in September, rather than the takeoff once hoped for.
Earlier this summer, many economists saw the week of Labor Day as the moment when the economic recovery would kick into high gear. Their expectation was that widespread vaccination would ease labor shortages. Schools and offices would reopen, which would mean a comeback for local businesses reliant on office workers. Travel would rebound. Stevie Nicks would be back on tour.
Instead, the rise of Covid’s Delta variant has the nation tapping the brakes.
Businesses and consumers are reworking plans to adjust to renewed mask mandates, travel restrictions, event cancellations, and delayed office re-openings. Consumers are pulling back on purchases and employers have slowed hiring. Economists are downgrading their forecasts. Stevie Nicks canceled.