Democratic leaders say tomorrow is the likely day for a BBB vote. The Build Back Better Act (BBB) may pass tomorrow, just in time for a week-long Thanksgiving recess. Some hold out hope for a vote as soon as today. Meanwhile, Sen. Joe Manchin says he is fine with a final vote on the bill before the end of this calendar year. He did not indicate what it would take for him to vote yes.
BBB’s modest economic impact… TPC’s Ben Page writes that the short-run growth and inflation effects of the BBB are likely to be very modest. A 2022 fiscal boost in the $200 billion range represents only 0.1 percent of Gross Domestic Product (GDP). The bill would have similarly small effects on inflation. Ben concludes “Supporters of the BBB bill insist the bill will create an economic boom and help workers manage price increases. Critics say it will only worsen inflationary pressures. In reality, both are overstating its effects.”
Rating agencies agree: BBB and infrastructure bills won’t make inflation worse. Economists and analysts at rating agencies Moody’s Analytics and Fitch Ratings tell Reuters that the two bills will have no material impact on inflation.
Federal judge: States can use ARP funds to cut taxes. US District Judge L. Scott Coogler ruled this week in Alabama that Congress overstepped its authority when the American Rescue Plan (ARP) barred states from using federal relief dollars to fund most tax cuts. Coogler wrote the restriction could keep states from considering any tax reductions out of fear of forfeiting ARP funds. He decried the restriction as “a federal invasion of State sovereignty" that was “unconstitutionally ambiguous.” Thirteen states filed the lawsuit.
Another federal judge wonders whether DOJ’s support for releasing Trump’s tax returns is political. In a hearing this week, US District Judge Trevor McFadden asked if the Justice Department would support a request by a Republican Congress for presidential tax returns. The issue: In 2019, Trump Justice Department attorneys argued that the House Ways & Means Committee had no legislative reason to request Trump’s tax returns. But in July of this year, Justice argued that a renewed, identical request does have legislative purpose. Justice lawyers said politics played no part in their argument. McFadden said he plans to rule on the case in the next several weeks.
Passing a wealth tax may be tough in Singapore, says its prime minister. Prime Minister Loong says a global agreement on minimum corporate taxes still will allow nations to compete for business investment. He thinks wealth taxes may be one area where countries still will battle it out. Singapore may include more details about its proposed wealth tax when it releases a budget in February.
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