What tariffs on Chinese goods will Biden repeal? President Biden will soon decide whether to lift any tariffs former President Trump imposed on Chinese goods. His decision will conclude a four-year review of Section 301 duties on furniture, footwear, appliances, and other consumer goods. Biden is expected to lift or reduce tariffs on perhaps $10 billion of the $350 billion in currently-taxed Chinese imports, a decision unlikely to have much impact on inflation. The Peterson Institute for International Economics found that entirely eliminating tariffs on Chinese imports could reduce inflation by 0.3 percent in the short run and up to 1 percent in the long run.
Next week: House to vote on over $500 billion in spending bills. The House is set to vote on six of its 12 spending bills next week; they’ll be packaged as one bill. The legislation would fund the departments of Housing and Urban Development, Transportation, Agriculture, Energy, Veterans Affairs, and the Food and Drug Administration. House Majority Leader Steny Hoyer predicts the remaining six bills will reach the floor later this month. The Senate has yet to act on its appropriations bills.
Rettig will meet privately with tax committees to discuss Comey audit. IRS commissioner Charles Rettig will meet behind closed doors with the House Ways & Means Committee on Thursday and the Senate Finance Committee on July 26 to explain what he knows about the agency’s intensive research audits of former FBI officials—and Trump critics—James Comey and Andrew McCabe. The agency insists no politics was involved when the two men were chosen for audit.
Many seniors in Maine will avoid property tax increases. Starting Aug. 8, Maine will freeze property tax hikes for residents age 65 and over who have owned a primary residence there for at least the past ten years. The state promises to reimburse local governments for the lost revenue, but one county tax assessor worries that it might take a year to get the money.
Spain will temporarily tax banks and power companies. The move could generate $7 billion for the 2023-2024 fiscal year. Details on the taxes are unavailable, but the government says they will apply to companies with revenue exceeding about $1 billion.
Despite protests and a bridge blockade, Hungary passes a tax increase. Citizens objecting to a tax overhaul proposed by Prime Minister Victor Orban blocked a bridge in Budapest for hours yesterday. They failed to halt the bill despite sharp criticism from business groups and the opposition party. The higher tax rate on hundreds of thousands of small businesses will take effect in September.
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