The Fed lowers a rate while CEOs expect lower growth. The Federal Reserve cut interest rates by 0.25 percentage points for the second time in recent months. The bank moved in response to slowing global growth and growing uncertainty over trade. Governors seem divided over whether to cut rates for a third time when they next meet. Meanwhile, a Business Roundtable survey of CEOs finds the executives expect moderate 2.3 percent growth rate in 2019, down from their last prediction of 2.6 percent. Said BRT president Josh Bolten, “Uncertainty is preventing the full potential of the economy from being unleashed, limiting growth and investment here in the US.”
Tariff Reform Coalition lobbies Congress. About two dozen lobbying organizations who say their industries have been hurt by the Trump Administration’s trade policies have asked Congress for more stringent oversight of President Trump’s tariffs. The Tariff Reform Coalition includes auto, retail, agro-food and manufacturing associations, and plans to help craft legislation to improve congressional oversight of Trump’s use of tariff authority.
Over Democrats’ objections, Senate confirms two Treasury Department nominees. Yesterday the chamber voted to confirm Brent McIntosh to be Under Secretary for International Affairs and Brian Callanan to be general counsel. Senate Democrats’ objected to both nominees in part because Treasury refused to comply with House Democrats’ requests for President Trump’s tax returns.
Illinois tax payers have a chance for tax amnesty. The state is offering a one-time amnesty program for Illinois residents who incurred tax liabilities between July 1, 2011 and June 30, 2018. The amnesty window will be from October 1 to November 15. During that time, the state will waive penalties and interest for those who pay back taxes in full.
No tax on sugary drinks for infrastructure in Indianapolis. The city’s Bipartisan Infrastructure Commission rejected a proposal to require retailers to collect a one-cent per ounce tax on sugary drinks to raise $47 million for infrastructure improvements. A city commissioner proposed the idea, but the commission, made up of state legislators, city-county councilors and local residents, rejected it.
Correcting a transposition. In yesterday’s edition, the item on Senate Appropriations and IRS funding should have read as follows: “The Senate appropriations subcommittee agreed to boost IRS funding to almost $11.4 billion for fiscal year 2020, up about $200 million from this year.” Those dollar amounts were transposed in the e-newsletter version of the Daily Deduction.
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 [email protected].
