The Fed raises interest rates. Will the jobless rate follow? The Federal Reserve announced an increase of 0.75 percent to its baseline interest rate. The Fed has raised the rate five times since March and by 0.75 percent three times. Most members of The Federal Open Market Committee expect to raise interest rates by at least another 1.25 percentage points before the end of the year to between 4.25 and 4.5 percent.
NY AG sues Trumps for deceiving lenders, insurers, and tax authorities. New York Attorney General Letitia James filed a civil lawsuit yesterday against former president Donald Trump and others. James alleged an “astounding” pattern of 200 cases of financial fraud. She said Trump inflated the value of his assets by billions of dollars to get loans while undervaluing the same property for tax purposes. She is seeking $250 million in penalties and to effectively bar the Trumps from doing business in New York for 5 years. James referred possible violations of federal law to the US Department of Justice and the IRS. Trump’s lawyer called the charges “political.”
Tune in at noon for TPC’s Prescription with Rohit Kumar. The former top policy aide to Senate Republican Leader Mitch McConnel will talk with TPC’s Howard Gleckman about the chances for a tax bill in a lame-duck congressional session. Register and tune in here at noon.
Missouri lawmakers move a $335 million tax cut for 2023. The Senate approved an individual income tax cut yesterday, a scaled-back version of a $700 million plan proposed by Gov. Mike Parson. The Senate measure would cut the top tax rate from 5.3 percent to 4.95 percent in 2023 and allow four additional revenue-growth-contingent rate reductions. When fully implemented, the top rate would be 4.5 percent. The bill eliminates Missouri’s lowest tax bracket, excluding the first $1,000 of earnings from state income tax.
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