Congress approves a $4.6 billion border bill. The House approved the $4.6 billion Senate version of the emergency spending bill for security and humanitarian aid at the US-Mexico border. The measure had been hung up for weeks. It gives the Trump Administration some flexibility in how it spends the money but no funding for its border wall.
What the Supreme Court ruling on the census means for nearly $1 trillion in annual federal payments. In the wake of the court’s ruling to block (for now) a census question on citizenship, TPC’s Tracy Gordon explains the importance of the decennial count in allocating $900 billion in federal grants, direct payments, loans and loan guarantees. Tracy concludes that yesterday’s decision makes counting the nation’s population much easier.
The US Supreme Court limits state taxation of some trust income. The high court ruled last week that it takes more than just a trust beneficiary’s residence for a state to tax the trust’s undistributed income. In North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust, the Court ruled that there must be more than a minimum connection and that the income be “rationally related to values [of] the taxing state” for the state to impose a tax. Remaining questions: What does this mean for other “resident trusts?” Will state or local governments now be challenged if they impose taxes on those trusts’ income? Forbes explains.
US and China still far from a trade deal. China has demanded that President Trump remove the ban on the sale of US technology to Chinese telecom company Huawei and end punitive tariffs as preconditions to settling the trade war between the two nations. Trump says he has a Plan B if there is no progress on a deal by the end of the weekend. "My Plan B with China is to take in billions and billions of dollars a month and we’ll do less and less business with them.” He now says he would impose tariffs of 10 percent, instead of 25 percent.
President Trump is unhappy with the Indian government’s response to US tariff increases. He has demanded that the south Asian nation withdraw its recent retaliatory tariff increases. Indian imposed import taxes on 28 US products after the US withdrew duty-free entry of some Indian goods.
Rep. Tlaib introduces a refundable tax credit for low- and middle-income families. She’d expand the refundable credit to $3,000 for individuals making less than $50,000 and $6,000 for married couples making less than $100,000. The credit would phase out with income and is similar to one proposed by Sen. Kamala Harris.
Congress will not be in session next week in observance of Independence Day. The Daily Deduction will return to its regular schedule on Monday, July 8.
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