U.S. Trade Deficit, Child Tax Credit, and State Government Tax Cuts
Environmental:
February 9: Pair of Senate Democrats Looking to cut Federal Gas Tax for 2022
Facing reelection, the pair of Senators want to get in front of rising gas prices(read inflation) for a midterm win. Inflation has hit a four-decade high in recent months, the product of snarled supply chains and persistent labor shortages helping to push up prices for groceries, housing, and most other goods and services.
The cost of gas is no exception. The national average is $3.47 per gallon, per AAA. The organization said that the threat of a Russian invasion of Ukraine and spate of snowstorms is helping increase the cost of oil.
Economy:
February 5: The US Trade Deficit Spiked at the end of last year | Second Article on Same Topic
The U.S. trade deficit in goods soared to record levels in 2021, topping $1 trillion as Americans continued to spend heavily on computers, toys, bicycles, clothing, pharmaceuticals and other goods made in foreign factories during the pandemic.
The overall trade deficit in both goods and services also hit an annual record, rising 27 percent to reach $859.1 billion, up from $678.7 billion the previous year, as the country’s imports far outpaced its exports, according to data released by the Commerce Department on Tuesday.
February 5: How Cutting China Investments Could Hurt the US
A new bill introduced would create a "Committee on National Critical Capabilities" that would be able to review FDI that would pose "risk" to national capabilities. The larger bill aims at keeping up with Chinese competition in energy and supply chain.
Federal:
Child Tax Credit
Vice President Harris and Secretary Yellen Headline Day of Action Event Alongside White House ARP Coordinator Gene Sperling, Mayors and Major Non-Profits to Encourage Americans to Sign Up for the Expanded Child Tax Credit and Earned Income Tax Credit
February 8: The Impact that Taking the CTC has on this years tax return
Families who took the credit will likely get a smaller return this year because the CTC was seen as an "advance."
Tax Policy Daily Digest:
February 8: Another Short-term Funding Bill, IRS Drops Facial Recognition
A short-term funding bill is proposed to fund the government through March 11th to prevent a shutdown.
Short-term government funding bill introduced
House passes stopgap bill to prevent shutdown
IRS is NOT requiring face recognition technology to get your tax returns.
February 7: Revival of employee retention tax credit
Senate Democrats are bringing back the Employee Retention Credit due to its popularity and lobbying efforts by small businesses and nonprofits
State and Local:
February 9: Why State Governments from both parties are cutting taxes
State leaders have so much money to spend this year—and are so eager to put dollars into people’s pockets as inflation rises. The partisan divide on the breadth and amount of tax cuts to be given to constituents. Democrats and some Republicans also have questioned whether their states will be able to afford large tax cuts in years to come. Lowering taxes can make it more difficult for states to pay for services such as education and health care. Includes map that dissects the % of cuts present by state.