TPC analyzes a plan to make the TCJA permanent. In a new analysis, TPC finds that making permanent the individual provisions of the 2017 Tax Cuts and Jobs Act would add more than $3 trillion to the federal debt over 10 years. The idea, at the top of the wish list of House GOP leaders, would primarily benefit high-income households. The biggest winners: Those making between about $400,000 and $1 million annually. TPC’s Howard Gleckman explains.
Tune in today at Noon for TPC’s webcast, The Prescription, with Arshi Siddiqui. The former top policy aide to House Speaker Nancy Pelosi, now a partner at the Akin Gump law firm, will discuss what the midterm elections will mean for tax policy this year and next. You can watch her conversation with TPC’s Howard Gleckman here at 12:00 eastern.
Fed’s Powell: Still fighting inflation but more moderate rate hikes coming. In a speech yesterday, Federal Reserve Chair Jay Powell said inflation remains well above the Fed’s target of 2 percent. But he said the Fed may slow its rate increases to gauge the impact of past rate hikes: “The time for moderating the pace of rate increases may come as soon as the December meeting,” he said. Analysts think that means a 50 basis point increase, rather than another 0.75 percent boost.
History made: House Democrats elect Rep. Hakeem Jeffries as their leader. The New York lawmaker succeeds Nancy Pelosi, who led her party for 20 years. He’ll be the first Black congressional party leader in history. House Democrats also chose Katherine Clark of Massachusetts to replace Steny Hoyer as Whip and Pete Aguilar of California to replace Jim Clyburn as caucus chair.
Treasury issues new wage standards for the IRA’s $270 billion in clean energy tax incentives. To qualify for tax credits available through the Inflation Reduction Act (IRA), firms will need to pay workers the prevailing wage for their area (determined by the Department of Labor) and abide by rules for the use of apprenticeship programs. The standards go into effect Jan. 29.
Norway sets tougher tax rules on expats. The government will abolish a five-year limit on its exit tax on unrealized capital gains. The rules also will apply to the transfer of shares to close family members living abroad. The change comes amid reports that more of Norway’s billionaires are moving abroad or considering leaving the country.
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