Changes to the CTC proposed by Sen. Manchin. Axios reports the West Virginia Democrat asked the White House to add a work requirement to an expanded Child Tax Credit and limit benefits to families with incomes of about $60,000 or less. Such a change would reduce the $3.5 trillion price tag of the social infrastructure bill Congress is debating. Manchin so far has said his spending cap is $1.5 trillion.
Senate spending bills unveiled. Senate Democrats rolled out their appropriations bills for the fiscal year that began almost three weeks ago. The bills would boost military spending by 5 percent and non-defense spending by 13 percent. The Pentagon money is more than President Biden requested but less than Senate Republicans want. Domestic spending is far more than the GOP will accept and a bit less than Biden requested. The appropriations need to 60 votes to pass the Senate, which they will not get.
Tomorrow at the Senate Finance Committee: The panel holds a hearing tomorrow morning on the future of health insurance. Witnesses include Linda Blumberg of the Urban Institute, Sara Collins of The Commonwealth Fund, Doug Holtz-Eakin of the American Action Forum, and Frederick Isasi of Families USA.
Tax collections are up in New Jersey. First quarter tax revenues for the fiscal year that began July 1 are 30 percent higher than the same time last year, reports the state’s Department of Treasury. The boost in income tax collections through the end of September was due to increased employee withholding and reduced refund payments. New Jersey delayed several tax-filing deadlines last year in response to the pandemic. State officials warn the uptick in tax collections is likely to ease through the year.
They’re up in New York, too. The comptroller reports state tax collections since the start of the fiscal year beginning April 1 are $1.8 billion more than projected. Collections reached $7.2 billion through the end of September. The data reflect the state’s continued economic recovery from the COVID-19 pandemic as well as higher tax rates included in the state budget.
Canada will soon impose higher taxes, but are they high enough? Prime Minister Justin Trudeau’s government plans to collect C$25.5 billion in new tax revenues over the next five years, largely from targeting evasion, wealthy individuals, big banks, and insurers. But the revenues won’t do much to pay down Canada’s record C$1 trillion national debt, nor will they balance the current year’s budget. Canada's debt-to-GDP ratio climbed 36 percent last year to 118 percent, due largely to government transfers of aid to individuals and businesses.
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