– Many provisions from the Tax Cuts and Jobs Act of 2017 are set to expire after 2025 unless Congress extends them.
– Fully extending the TCJA tax breaks could add an estimated .6 trillion to the deficit over the next decade.
– The federal budget deficit could complicate proposals from former President Donald Trump and President Joe Biden.
Hungry people in the U.S. faced a .1 billion shortfall in funds for basic food needs in 2022, with nearly half of them not qualifying for aid. This was the highest shortfall in 20 years due to higher food prices. Hunger rose in 2022 amid high food price inflation and the end of federal financial support and expanded food aid programs during the COVID-19 pandemic. Nearly half of food-insecure people may not qualify for the Supplemental Nutrition Assistance Program. Congress has expanded funding for a key nutrition program serving mothers and young children to address the issue.
The text discusses gross receipts taxes, which are imposed on businesses based on their gross sales before deducting operating costs. Seven states have a state-level gross receipts tax, while three allow municipalities to assess it locally. Gross receipts taxes have a long history but have fallen out of favor in recent decades. States often differentiate tax rates based on industry or revenue levels. Some states, like Nevada and Washington, have poorly structured gross receipts taxes that are legally problematic. Ohio and Oregon have recently made changes to their gross receipts taxes. Overall, the text argues that gross receipts taxes are harmful and should be replaced with a well-structured corporate income tax.
Israeli forces have re-entered the northern edge of Gaza to prevent fighters from returning, resulting in intense fighting on both the northern and southern edges of the enclave. Hundreds of thousands of Palestinians have fled, and aid groups warn of a looming humanitarian crisis. The death toll has surpassed 35,000, with many more feared buried under rubble. Israel’s assault on Rafah has strained its relationship with the United States, leading to a temporary hold on weapon shipments. Hamas fighters are engaged in battles with Israeli forces in various areas of Gaza.
About a dozen students were arrested during a sit-in at a Denver college campus, but emerged from detainment to cheers from fellow pro-Palestinian protesters. The protesters are demanding a permanent ceasefire in Gaza, university divestment from companies profiting from the war, and amnesty for disciplined or fired protesters. Academics believe that maintaining the energy of the movement once students leave campus will be a challenge, but the protests have spread across the country and to smaller universities, showing staying power. The movement may evolve or fade away, but students in Denver are committed to continuing their protests until their demands are met, even through summer break and into the fall. Police responses to protests have ignited a sense of activism in a new generation of students, and there are expectations for a summer of protest leading up to the presidential election. Michael Heaney, a lecturer in politics, believes that the protests are just one tactic in a wider movement and that they could grow if Israel’s offensive in Gaza continues. Despite the potential for the campus to become a ghost town after graduation, student protesters in Denver are determined to continue their encampment.
Fact: U.S. President Joe Biden joked about former President Donald Trump suggesting injecting bleach as a treatment for COVID-19.
On May 11, 1943, U.S. amphibious forces recaptured Attu in the Aleutians, marking the first American territory taken back from the Japanese.
Director of the National Economic Council Lael Brainard spoke at the White House about the upcoming debate over trillions in expiring tax breaks enacted by former President Donald Trump. Several provisions from the Tax Cuts and Jobs Act of 2017 will expire after 2025 without changes from Congress, including lower federal income tax brackets, a higher standard deduction, and doubled estate and gift tax exemption. The Republicans’ tax package also permanently reduced corporate taxes. Brainard emphasized the need to end tax breaks for the ultra-wealthy and scale back costly corporate tax breaks. The debate over extending the tax breaks comes amid concerns about the national debt. Biden’s administration aims to extend provisions for middle-class Americans funded by raising taxes on the ultra-wealthy and corporations. House Republicans are studying solutions to address the upcoming tax cliff in 2025.
The winner of November’s presidential election will face a challenge with the expiration of nearly trillion in tax cuts next year. Biden’s White House is highlighting the issue and emphasizing differences with Republicans over taxes. Biden wants to raise taxes on corporations and the ultra-wealthy to support the middle class. Trump argues that tax increases would harm the economy. The 2017 tax cuts failed to deliver the promised growth. Biden wants to extend middle-class tax cuts while raising taxes on profitable companies and the richest Americans. Trump believes growth comes from choices made by companies and wealthy investors, while Biden believes it comes from spending and saving by middle-class households. Extending all of Trump’s tax cuts would add .6 trillion to budget deficits through 2034. Biden’s plan does not include the cost of extending tax cuts for those making under 0,000. Republicans may need to consider spending cuts to address the higher debt load from extending tax cuts.
Lael Brainard, the director of the National Economic Council, suggested that lawmakers should raise taxes on companies and the wealthiest while extending the 2017 cuts for those making less than 0,000.