“We’re not scared to lose it all…” White House economic adviser Kevin Hassett told CNN yesterday that the US economy could stop growing in the first quarter of 2019 if the shutdown continues. “[I]f we get a typically weak first quarter and then have an extended shutdown than we could end up with a number that’s very, very low,” he said. While the Senate is scheduled to vote today on two bills to open the government and House Democrats will offer at least $5 billion for border security (but not a wall), the shutdown continues with no end in sight.
“Security? Throw through the wall.” Hundreds of recalled IRS employees are staying home during the partial government shutdown because of financial hardship, say their union leaders. A big increase in absences could hamper the government’s ability to process tax refunds on time.
“Future dreams we have to realize?” The European Union threatens $22.7 billion in tariffs on US imports. The European Commission’s senior trade official said it is prepared to respond to US tariffs on cars and auto parts imported from the EU. He said, “If the [Trump] administration issues a report in the next few weeks proposing import duties or quotas on European cars and car parts, we should be clear that we are not interested in any managed trade solution and that we will react if we are hit.”
“A thousand skeptic hands won’t keep us from the things we plan.” Will New Mexico raise its gasoline tax? Democrats control state government and are considering gas tax increase of as much as 10 cents to a total of 27 cents per gallon. They’d use the revenue for road repairs.
“It make take a little time… I won’t stop and falter.” The Fiscal Innovations project is seeking state partners. The joint project of TPC, the Urban Institute, and Urban's State and Local Finance Initiative will deliver coordinated technical assistance to a select group of states, starting with five states. The goal is to strengthen state leaders' decision-making in budgeting, finance, and forecasting. States can apply here for a no-cost consultation from finance experts, assessments of financial and budget systems, and custom modeling insights. This project is funded by the Laura and John Arnold Foundation.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at firstname.lastname@example.org.
Posts and comments are solely the opinion of the author and not that of the Tax Policy Center, Urban Institute, or Brookings Institution.
- © Urban Institute, Brookings Institution, and individual authors, 2020.