Congress passes $2.5 trillion debt limit increase. The increase likely avoids default on the nation’s debt until 2023, and forestalls another partisan battle over borrowing until after the 2022 congressional elections. The hike is the largest dollar increase in US history, but as a percentage boost, it is slightly lower than what Congress enacted in 2011. Without congressional action, the Treasury would have breached its borrowing limit within the next few weeks.
Trump must give tax returns to Congress, judge rules. Federal District Judge Trevor McFadden, a Trump appointee, rejected the former president’s effort to block lawmakers from demanding his tax returns. The judge ruled that Trump was “wrong on the law” and dismissed the case. Trump will almost certainly appeal.
Virginia Governor Northam: Let’s shelve the state’s 1.5 percent grocery tax. With the state running a huge surplus, the legislature will convene next month to consider tax cuts. Northam, a Democrat, also would cut the income tax for low-income working families and provide one-time rebates of $250 for individual filers and $500 for filing joint filers. Governor-elect Glenn Youngkin, a Republican, ran on repealing the grocery tax. His office now says he wants across-the-board tax cuts but he’ll have to work with a Democratic Senate to make them happen.
South Carolina’s Education Oversight Committee has plans for sales tax revenues. The nonpartisan committee recommended this week tat South Carolina use its 1 percent sales tax—specifically designed to fund public education—on data dashboards, college and career readiness, and teacher recruitment and retention. The state has an additional $90 million from this tax thanks to a rebounding economy after pandemic-battered consumer sales in 2020.
Lansing, Michigan moves to create a tax-free “Renaissance zone” for General Motors. People living in a designated zone would be exempt from the city’s personal income and property taxes. The city council endorsed the area for a $2.5 billion General Motors battery plant.
Will Jacksonville, Florida repeal its new gas tax increase? It’s supposed to take effect in three weeks but city leaders plan to vote on an emergency bill to repeal the tax increase in response to high gas prices. In May, city leaders voted to double the 6 cents per gallon tax. The increase could raise more than $960 million over 30 years to fund transportation and other projects.
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