Tag: economics

Inflation Measure Surges Again, Hits New Three-Decade High

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People on an escalator in an indoor shopping mall

An index measuring inflation surged at an annual rate of 4.2% last month, reaching its highest level since 1991, according to the Department of Commerce.

The personal consumption expenditures (PCE) index, which measures prices, increased 4.2% in the 12-month period between August 2020 and July 2021, according to a Department of Commerce report published Friday. Excluding volatile food and energy prices, the index spiked 3.6%, the report showed.

The last time consumer prices increased this much in one year was more than three decades ago in January 1991, CNBC reported. The figure reported Friday is in line with what economists expected.

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House Lawmakers Set to Square off with White House, Treasury Department over ‘Stifling’ Crypto Tax Plan

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House lawmakers are set to return from recess Monday and will likely take up the $1.2 trillion bipartisan infrastructure bill the Senate passed last week — and with it, a controversial and last-minute cryptocurrency tax provision.

The bill contains a tax reporting mandate forcing cryptocurrency “brokers” to disclose gains and transactions to the Internal Revenue Service (IRS) as part of a scheme designed to help cover part of the infrastructure bill’s cost. However, the bill’s definition of “broker” has been criticized by the cryptocurrency community and pro-crypto lawmakers as vague, expansive and potentially unworkable, with many fearing it could stifle the industry and force crypto companies to collect personal information on their customers.

The provision defines a broker as “any person who is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person,” and forces brokers to report transactions to the IRS in a form similar to a 1099. This means brokers have to collect and report customer information such as names, addresses, and taxpayer identification numbers.

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Michigan Lawmaker Calls on Unemployment Insurance Agency for Answers About Benefit Blunder

The Center Square
Rep. Steve Johnson

The leaders of the Unemployment Insurance Agency (UIA) knew as early as Jan. 6 they erred in developing qualifications for benefits, but didn’t tell the 700,000 Michiganders affected for nearly six months.

The Detroit News first broke the story.

After Jan. 6, the UIA tried to retroactively charge some benefit recipients up to $27,000 for the state’s mistake, instead of admitting it erred.

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Conservative Media Company Is the Fastest-Growing Advertising And Marketing Business in the U.S., According to Inc. 5000

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A conservative digital media company’s focus on the culture wars in America appears to be paying off, as it is the fastest-growing private advertising and marketing business in the U.S., according to the 2021 Inc. 5000 list released Tuesday.

“We focus on working with groups that are advocating for or otherwise advancing conservative causes or conservative beliefs,” Olympic Media Founder and CEO Ryan Coyne told the Daily Caller News Foundation on Thursday.

Olympic was founded in 2018 and has had many high-profile clients, such as Reps. Elise Stefanik, Jim Jordan, and Madison Cawthorn, Sen. Bill Hagerty and Turning Point USA.

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Retail Sales Dipped in July Amid Spiking Coronavirus Cases

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Woman shopping

Retail sales in the U.S. declined in July as the number of coronavirus cases spiked, localities renewed some restrictions and businesses delayed their return to in-person work.

Sales dropped 1.1% in July compared to June and totaled $617.7 billion, according to the Census Bureau report released Tuesday. The decrease was driven mainly by declining used and new car sales, clothing purchases, building materials sales, sports goods sales and furniture purchases.

Economists expected retail sales to fall 0.3%, a relatively modest drop compared to the actual decline, CNBC reported. All major stock market indices declined between 0.5% and 0.8% on Tuesday morning following the worse-than-expected report.

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Commentary: The Biden Inflation Tax, Made Clear in One Chart

RealClearWire
Joe Biden walking with "American Jobs Plan" sign

What is all this “Biden inflation tax” talk really about? What is the actual effect of inflation on the lives of real people? 

Well, below is a chart that compares yearly wage and inflation rates for each month from 2017 through July of this year using Bureau of Labor Statistics data. Wage rates are in blue and inflation (as measured by the consumer price index) is in red. When blue is on top, as it was during the entire Trump administration, workers’ wages are beating inflation and their standards of living are improving. When red is on top, they’re not.

While President Biden claims that it is “indisputable” that his jobs plan “is working,” this chart unequivocally shows that it is not, at least not for American workers. Rather, inflation is surging, more than wiping out any wage gains those workers might have experienced.

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Farmers Cry Foul over Biden’s Death Tax Proposal

The Center Square
Woman with ball cap on, out in the fields of a farm

President Joe Biden has proposed amending the inheritance tax, also known as the “death tax,” but farmers around the country are raising concerns about the plan.

In the American Families Plan introduced earlier this year, Biden proposed repealing the “step-up in basis” in tax law. The stepped-up basis is a tax provision that allows an heir to report the value of an asset at the time of inheriting it, essentially not paying gains taxes on how much the assets increased in value during the lifetime of the deceased. This allows heirs to avoid gains taxes altogether if they sell the inheritance immediately.

Under Biden’s change, heirs would be forced to pay taxes on the appreciation of the assets, potentially over the entire lifetime of the recently deceased relative. 

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U.S. Economy Added Whopping 943,000 Jobs in July as Recovery Accelerates

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The U.S. economy reported an increase of 943,000 jobs in July and the unemployment rate fell to 5.4%, according to Department of Labor data released Friday.

Total non-farm payroll employment increased by 850,000 in July, according to the Bureau of Labor Statistics report, and the number of unemployed persons decreased to 8.7 million. Economists projected 845,000 Americans would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.

“The jobs recovery is continuing, but it’s different in character to any we’ve seen before,” payroll software firm ADP economist Nela Richardson told the WSJ. “I had been looking at September as a point when we could gain momentum—with schools back in session and vaccines widely available. But with the delta variant, we need to rethink that.”

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Senate Fails to Wrap Up Infrastructure Bill After Talks to Expedite Process Collapse

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Senate Majority Leader Chuck Schumer set up a critical vote on the bipartisan infrastructure bill Saturday after talks to expedite the process fell apart late Thursday.

Both Republicans and Democrats engaged in marathon talks Thursday in a bid to vote on a package of amendments and to advance the sweeping public works package. Doing so, however, required approval from all 100 senators, and Tennessee Republican Sen. Bill Haggerty refused to go along even as his Republican colleagues urged him to do so.

In a statement, Hagerty attributed his objection to  the Congressional Budget Office’s estimation that the bill would add $256 billion to the national debt over 10 years.

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Newt Gingrich Commentary: The Higher Inflation and Bigger Debt Act

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United States currency

The $3.5 trillion spending bill set up to follow the $1.1 trillion infrastructure bill (which has little to do with infrastructure) should be called what it really is: The Higher Inflation and Bigger Debt Act.

The Democrats would like you to believe it is only a reconciliation bill. This is vital to them because a reconciliation bill only takes 50 senators and the vice president to pass the U.S. Senate.

However, this additional $3.5 trillion comes after trillions of emergency spending prompted by the COVID-19 pandemic. Consider what the Congressional Budget Office has written about the fiscal situation before the $1.1 trillion and $3.5 trillion bills are passed:

Here is what the Congressional Budget Office forecasts (not counting Biden’s enormous spending plan): 

“By the end of 2021, federal debt held by the public is projected to equal 102 percent of GDP. Debt would reach 107 percent of GDP (surpassing its historical high) in 2031 and would almost double to 202 percent of GDP by 2051. Debt that is high and rising as a percentage of GDP boosts federal and private borrowing costs, slows the growth of economic output, and increases interest payments abroad. A growing debt burden could increase the risk of a fiscal crisis and higher inflation as well as undermine confidence in the U.S. dollar, making it more costly to finance public and private activity in international markets.”

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Critics Pan Biden Order Calling for Half of U.S. Vehicle Sales to Be Electric by 2030

The Center Square
Electric car being charged

A new executive order from the Biden administration has accelerated the timeline for electric vehicles and raised questions about the economic impacts of the transition away from gas-powered vehicles.

President Joe Biden signed the executive order Thursday aimed at making 50% of vehicles zero emission in the U.S. by 2030, an aggressive push toward electric vehicles. About 2% of new cars sold each year in the U.S. are currently electric, according to the Pew Research Center.

“The Executive Order also kicks off development of long-term fuel efficiency and emissions standards to save consumers money, cut pollution, boost public health, advance environmental justice, and tackle the climate crisis,” the White House said.

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Ohio State Employees to Be Paid to Get Vaccinated

The Center Square
Doctor giving vaccination to patient

Ohio plans to spend more federal tax dollars to convince more people to get the COVID-19 vaccine.

Gov. Mike DeWine recently announced the state plans to pay $100 to each state employee for getting the vaccine. Their spouses would receive $25.

For spouses and employees enrolled in the state medical plan, the money will come from funds dedicated to state employee health and wellness, which is funded through state employee payroll deductions and state agency contributions. For those not enrolled, the state will use coronavirus relief funds. That is a small number of employees, according to Molly O’Reilly McGhee, public information officer for the Administrative Support Division.

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Western Governors to Biden on Wildfires: Feds Need to Play to Win

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Joe Biden

Governors in wildfire country had a message for President Joe Biden and Congress on Friday: it’s time for the federal government to step in and manage its forests because their state resources are running on empty.

In 2021, 83 large fires have burned more than 1.7 million acres in 13 states, the National Interagency Fire Center reports. Some 547,000 acres have been lost to fires in Oregon, where the state’s Bootleg Fire has swelled to 413,000 acres and has become the nation’s largest fire. While some 22,000 wildland firefighters and support personnel beat back the flames nationwide, states governments are calling on Biden to help them rewrite the nation’s firefighting playbook.

California Gov. Gavin Newsom said as much to Biden on Friday at a virtual news briefing. More specifically, Newsom took aim at the U.S. Forest Service response to the Tamarack Fire south of Lake Tahoe that grew to 625 acres before creeping into Nevada over little more than a three-week span this month. 

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Report: Many Tennessee Economic Indicators Trend up, Others Mixed

The Center Square
Tootsie's Orchid Lounge, Nashville, Tennessee. One of Nashville's renowned honky-tonk bars, Tootsie's has featured over the years many performing artists who have since become famous, such as Willie Nelson, Patsy Cline and Kris Kristofferson.

How is Tennessee’s economy doing? A lot of it is doing well when compared to the COVID-19 lows on many economic indicators such as employment, a new Sycamore Institute report shows.

But other items are troubling, such as there being 40% fewer small businesses in Tennessee as of late June data than there were before the pandemic. That’s considering that 99% of private sector workers in the state work for small businesses, defined as companies of 500 employees or less.

“There are a lot of things going on here,” said Brian Straessle, the Sycamore Institute’s Director of External Affairs. “There isn’t like one nice neat narrative of the economy right now.”

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Study: Democrats’ Capital Gains Tax Hike Could Cost More Than 745,000 Jobs

The Center Square
Chris Van Hollen

A new Democratic proposal to increase the capital gains tax could cost 745,000 jobs, a study published by the Regional Economic Models Inc. (REMI) projects.

The Sensible Taxation and Equity Promotion (STEP) Act, which would tax unrealized capital gains when heirs inherit assets, among other things, would have a “significantly negative impact” on the economy, including average job losses of 745,000 over 10 years, the report found.

The analysis, conducted for the Committee to Unleash Prosperity, found that sustained annual job losses from eliminating a tax benefit on appreciated assets known as the step-up in basis could eliminate between 537,000 to 949,000 jobs, with models predicting a base of 745,000 lost jobs through 2030.

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800 Virginia Businesses Back Tourism, Hospitality Relief in Budget

The Center Square

More than 800 businesses and business associations are jointly urging the Virginia General Assembly to approve a budget item for $291 million in relief to the travel and hospitality industries, which was proposed by Gov. Ralph Northam.

Northam’s proposal would appropriate funds from the federally passed American Rescue Plan to help these industries bounce back from losses caused by the COVID-19 pandemic and subsequent economic restrictions. The General Assembly is scheduled to meet on Aug. 2 to consider the budget proposal.

The businesses and business associations signed a joint letter showing their support. It includes the Virginia Chamber of Commerce and the Virginia Restaurant Lodging and Travel Association.

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Report: 1.9 Million Households Owe $15 Billion in Back Rent as Eviction Moratorium Expires

The Center Square
Aerial view of a suburb

Up to 1.95 million households across America will owe a collective $15 billion in back rent when the eviction moratorium expires Saturday, the Federal Reserve Bank of Philadelphia estimates.

That number will reach 2 million by December, according to the report released Friday. In Pennsylvania, about 60,000 renter households will owe $412 million come August. 

The U.S. Centers for Disease Control and Prevention (CDC) made one final 30-day extension of the Emergency Rental Assistance Program through July 31. President Joe Biden’s administration said its “hands are tied” by the courts on the matter and any further relief must come from Congress itself. 

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Michigan’s $348.7 Million Pandemic Relief Bill, with Funds for Child Care, Hospitals, Signed into Law

The Center Square
Jim Stamas

Gov. Gretchen Whitmer has signed Senate Bill 27 to appropriate $384.7 million in supplemental pandemic relief funding.

Signed by the governor on Monday afternoon, the bill also provides $10 million of financial support for Southeast Michigan families and businesses that endured massive flooding in June.

SB 27 was introduced by Sen. Jim Stamas, R-Midland, in January. The bill combines $367.7 million of federal COVID relief funding authorized through the Coronavirus Response and Relief Supplemental Appropriations Act and $17 million from the state’s general fund.

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Bezos Offers to Waive $2 Billion in Fees to Secure Lunar Landing Contract

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Jeff Bezos

Former Amazon CEO Jeff Bezos offered to waive $2 billion in payments to secure his spaceflight company Blue Origin a NASA contract.

Bezos asked NASA Administrator Bill Nelson in an open letter Monday to award Blue Origin a contract to construct a Human Landing System (HLS), a lunar-landing vehicle, as part of the Artemis program, offering to waive up to $2 billion in fees. Elon Musk’s space company SpaceX had been awarded the $2.9 billion contract in April, beating out Blue Origin’s bid, The Wall Street Journal reported.

The Artemis program is intended to return human astronauts to the Moon, with a manned mission to Mars planned as well. Though the program was initially planned as a joint contract, it was awarded solely to SpaceX due to budgetary constraints which Bezos’ offer sought to alleviate, according to the letter.

“Blue Origin will bridge the HLS budgetary funding shortfall by waiving all payments in the current and next two government fiscal years up to $2 billion to get the program back on track right now,” Bezos wrote in the letter.

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New E-Commerce Facility to Bring over a Thousand Jobs to Tennessee

The Center Square
A golden lab and black lab in front of a Chewy box

Chewy Inc. plans to build a new e-commerce fulfillment center in Wilson County that will lead to 1,200 new jobs, Tennessee officials and the company announced Tuesday.

Details on the size, cost or economic incentives related to the project, projected to open in fall 2022, were not immediately released. Once finalized, those details will be included in the state’s economic development database in the next 15-30 days, according to the Tennessee Department of Economic and Community Development.

“At 1,200 jobs, Chewy will become one of the top three largest employers in Wilson County,” TDECD Commissioner Bob Rolfe said in a statement.

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Partnership Boosts Supply Chain Resiliency for Florida’s $56B Manufacturing Industry

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Aerial shot of downtown Miami, Florida

According to an April-June McKinsey Global Survey poll of 60 senior supply-chain executives from across the nation, 73% encountered a shortage of suppliers – not just supplies – and 75% faced production/distribution shortfalls during the 2020 height of the COVID-19 pandemic.

Florida’s 21,000 manufacturers – not to mention farmers, restauranteurs, hoteliers, retailers – were also affected by pandemic-induced supply disruptions, as they were by Hurricanes Irma in 2017 and Michael in 2018.

To mitigate disruption for the state’s $56 billion manufacturing industry, which employs about 400,000 Floridians, the Associated Industries of Florida (AIF), Space Florida and FloridaMakes have formed Connex Florida, an online database to link manufacturers connect with prospective suppliers and develop business opportunities.

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Georgia to Issue Licenses to Companies for Medical Marijuana Production

The Center Square
Zane Bader

The Georgia Access to Medical Cannabis Commission will pick six companies to start producing the plant for medical uses in the state.

Nearly 70 companies applied for licenses to grow marijuana and convert it to oil to treat various illnesses. Once the commission approves them, the companies could be looking at paying up to $200,000 in licensing fees to the state. They will have one year to get product to thousands of Georgians who have been waiting for more than five years.

Patients with a Low THC Oil Registry card legally can purchase up to 20 fluid ounces of the THC oil from licensed dispensaries or pharmacies under legislation signed into law by former Gov. Nathan Deal in 2015. However, without guidelines and a medical marijuana marketplace, the 14,000 registered patients in Georgia have no way of legally obtaining the oil.

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Rental Car Companies Across U.S. Struggle to Replace Diminished Fleets

The Center Square
Blue sedan during sunset at dealership in lot

The country is opening up and travel is increasing, but visitors are finding the rental car landscape a bit empty.

Rental car companies are continuing to have a hard time keeping up with demand after selling off fleets to stay afloat during the pandemic.

“The fundamental thing that’s causing it is the very rational corporate response to the pandemic and the almost shutting down of international and domestic travel for most of 2020 and the first half of 2021,” Gregory Scott, spokesperson for the American Car Rental Association (ACRA), told The Center Square. “Airport rentals dropped 70-90% in March and April of last year, and as a result there were literally tens of thousands of vehicles sitting unrented and unwanted because people stopped traveling.”

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Michigan Jobs 322,000 Under Pre-Pandemic Level

The Center Square
Detroit skyline at night

Sixteen months after the COVID-19 pandemic began, Michigan is still behind 322,000 jobs compared to pre-pandemic in Feb. 2020. 

Michigan’s seasonally adjusted jobless rate of 5% percent was unchanged in June, according to data released by the Michigan Department of Technology, Management & Budget.

“Michigan’s labor market indicators were little changed in June,” Wayne Rourke, the associate director of the Bureau of Labor Market Information and Strategic Initiatives, said in a statement. “The Michigan unemployment rate has been near 5.0 percent for five consecutive months. Payroll job counts in June were similar to March levels.”

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Treasury Secretary Warns of ‘Rapid’ Inflation This Year

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Janet Yellen

As more federal data show a major spike in inflation, another top federal official said the U.S. is in for more aggressive inflation for the rest of 2021.

Federal officials have been pressed to speak on rising inflation after \data released earlier this week showed that the all items index increased 5.4% over the last 12 months, the biggest spike since the 2008 financial crisis.

Treasury Secretary Janet Yellen commented on the rise in inflation, saying it would grow worse this year.

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Ducey Invests Millions of Federal Dollars to Start Visit Arizona Initiative

The Center Square
Three people on bikes in Arizona during sundown

Gov. Doug Ducey is investing $101.1 million from the federal American Rescue Plan funding to launch the Visit Arizona Initiative to increase tourism spending in Arizona and expedite its economic recovery. 

“Tourism is essential for Arizona’s booming economy and job growth,” Ducey said in a release. 

He said that when tourists stay at Arizona hotels, eat at restaurants, buy Arizona products, and partake in the state’s recreational activities, Arizona’s economy booms.

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Federal Reserve Chair: Inflation to be ‘Elevated for Months’

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Jerome Powell

Federal Reserve Chairman Jerome Powell tried to calm lawmakers’ fears about rising inflation but also said it would probably remain elevated for months to come.

Testifying before Congress this week, Powell said the Federal Reserve was willing to step in to address the situation, but that inflation should level out next year.

“As always, in assessing the appropriate stance of monetary policy, we will continue to monitor the implications of incoming information for the economic outlook and would be prepared to adjust the stance of monetary policy as appropriate if we saw signs that the path of inflation or longer-term inflation expectations were moving materially and persistently beyond levels consistent with our goal,” Powell said in his prepared testimony.

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Average Tennessee Teacher Salary Surpasses $52,000 a Year

The Center Square
Tennessee Teacher Salary

The average public school classroom teacher in Tennessee made $52,596 during the 2019-20 school year, according to a new report from the Tennessee Comptroller’s Office of Research and Education Accountability.

The average salary rises to $55,210 if it includes classroom teachers and positions such as librarians, school counselors and principals, and it jumps to $55,554 if it includes all personnel in a school district with an educator’s license.

The Tennessee Department of Education’s budget was increased by $219 million in this year’s budget, which included $120 million for teacher raises, allowing teachers with no experience a staring salary of $38,000 a year or more. With an advanced degree, the minimum starting salary is $41,605.

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More Than $300M Available to Ohio Small Businesses

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Mike DeWine OH Small Businesses

Government money that established grants for small businesses in Ohio has doubled since June and remains available, according to Ohio Gov. Mike DeWine.

DeWine initially established the grant program in June with $155 million in federal relief dollars. The fund doubled to $310 million at the beginning of July after DeWine signed the state’s new budget, which included the additional money approved by the General Assembly.

The money is meant to help small- and medium-sized businesses recover from the COVID-19 pandemic.

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Commentary: Inflation Has Arrived

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Wildly excessive federal spending is causing major inflation and shortages, which may lead to a recession and perhaps a financial crisis. Despite the evidence of inflation, Congress is proposing to spend $3.5 trillion on top of the $1.9 trillion COVID relief bill passed earlier this year and the intended $1.2 trillion infrastructure bill. For comparison, federal revenue is only expected to be $3.8 trillion this year.

Evidently, the Democratic Party and President Joe Biden have adopted Modern Monetary Theory (MMT) to the peril of every American citizen. MMT, which is similar to Keynesian economics, says that the U.S. should not be constrained by revenues in federal government spending since the government is the monopoly issuer of the U.S. dollar. MMT is a destructive myth that provides cover for excessive government spending. And it’s not modern, since reckless government spending has been around for thousands of years.

Embracing MMT is similar to providing whiskey and car keys to teenage boys. We know the outcomes will not be good.

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U.S. Retail Sales Increased as States Ended Restrictions

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Male checking out on Square program at retail store

U.S. retail sales jumped in June, boosted by states widely loosening coronavirus restrictions and businesses returning to full capacity.

Retail sales increased 0.6% and totaled $621.3 billion in June, according to the Department of Commerce report released Wednesday. The monthly increase was driven by general merchandise, including food service, clothing, personal care, electronics and gasoline sales, the report showed.

“Sectors that were buoyed by the pandemic are slowing down a little bit, but not to a degree that I’d be concerned about,” Square economist Felipe Chacon told The Wall Street Journal. “Household finances have been bolstered by a few rounds of stimulus spending, so it bodes pretty well.”

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Inflation Spikes Again, Marks Quickest Increase in 13 Years

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Inflation surged 5.4% over the 12-month period ending in June, the quickest spike since August 2008, a Department of Labor report showed.

The consumer price index (CPI) increased 0.9% between May and June, according to the Labor Department report released Tuesday morning. Economists projected the report would show that CPI ticked up 4.7% between July 2020 and June, The Wall Street Journal reported.

“We’re in a transitional phase right now,” Joel Naroff, the chief economist at Naroff Economics, told the WSJ. “We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”

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California Spent $13 Million to Guard 120 Empty Homes

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Several tents on the side of the street

The state government of California has been revealed to have spent $13 million on providing security for 120 empty houses for five months, even as a homeless crisis ravaged the state, Fox News reports.

In a report broken by local outlet Fox 11, the California Department of Transportation (CalTrans) paid $9 million to the highway patrol from November 2020 to April 2021, and gave another $4 million to a private security firm over the same period, all for the purpose of protecting the vacant houses in Pasadena.

In a statement addressing the report, CalTrans said that the houses had been purchased by the government 60 years ago, when there were plans for a change in the local infrastructure by connecting the 710 freeway to the 210. However, that project “is no longer moving forward,” the government statement declared.

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Ohio May Forgive Overpaid, Fraudulent Unemployment Payments

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Woman on computer

Ohioans victimized by unemployment fraud or were overpaid unemployment benefits during the COVID-19 pandemic could be off the hook for repaying those funds, according to the Ohio Department of Job and Family Services.

ODJFS Director Matt Damschroder said late last week if a waiver is approved, claimants will not have to repay money previously labelled as an overpayment and also could receive benefits that have been withheld because of an overpayment status.

Claimants should be notified soon of how to apply for a waiver and processing could begin later in the summer, Damschroder said.

“We understand the hardships that overpayments caused during what is already a very stressful time.” Damschroder said. “Our unemployment program is in a much better position than it was a year ago.”

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Californian Destination States See Home Prices Skyrocket

The Center Square
Housing community/subdivision with grey and beige colored houses

A popular gripe about Californians moving into nearby states is they bring their politics with them. The newest complaint could be they’re bringing high home prices as well.

Property data provider CoreLogic released its monthly Home Price Index on Tuesday, reflecting May values. It showed home prices in every state increased from average listing prices in May 2020. In states with a disproportionate number of relocated California residents, home prices increased well above the national average of 15.4%.

Of the 165,355 California taxpayers that left in the tax year 2019, 29,050 taxpayers and their dependents moved to Arizona. CoreLogic’s report showed Arizona’s home prices grew 23.4% from May 2019 to May 2020.

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Attorney General Ellison Announces $50 Million Settlement with Purdue Pharma

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Keith Ellison

Attorney General Keith Ellison announced Minnesota will get $50 million from the settlement of the state’s lawsuit against the Sackler family’s company Purdue Pharma, which manufactured the opioid drug Oxycontin that contributed to the deadly opioid crisis nationwide.

The resolution will make public more than 30 million documents related to Purdue’s role in the opioid crisis and require the Sacklers to pay $4.3 billion for prevention, treatment, and recovery efforts in communities across the country.

Minnesota’s share of those payments is expected to exceed $50 million over nine years, the spending of which will be overseen by the State’s Opioid Epidemic Response Advisory Council.

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Republicans Push Back Against ‘Politicization’ of IRS

The Center Square

President Joe Biden has pushed for beefing up IRS audits of corporations to raise revenue for his new spending proposals, but Republicans are raising the alarm about the potential consequences of the plan.

Biden unveiled his “Made in America Tax Plan” earlier this year as a strategy to help fund his trillions of dollars in proposed new federal spending that includes several tax hikes. Despite this, a bipartisan coalition in the U.S. House and Senate have agreed to a basic framework for Biden’s proposed infrastructure plan, but one element has been the theme of the negotiations among Republicans: no new taxes.

The GOP pushback against raising taxes, though, puts more pressure on the Biden administration to find ways to fund his agenda. Aside from Biden’s controversial tax hike proposals, the president also has proposed adding $80 billion in funding to the IRS so it can increase audits of corporations.

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Amazon Calls for Higher Taxes on All Corporations Except Itself

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Amazon logo on Samsung smartphone screen

While the tech giant Amazon has publicly endorsed proposals to raise the corporate tax rate in the United States, the company has been secretly lobbying to keep its own tax rates low, Politico reports.

Last year, during the 2020 presidential election, Amazon CEO Jeff Bezos openly supported then-candidate Joe Biden’s proposals to raise taxes on American corporations. Those proposals have re-emerged in recent weeks as a possible means of funding a possible infrastructure bill, and Biden has been advocating for other countries around the world to adopt higher corporate tax rates as well.

But recently, Amazon has been stepping up its lobbying efforts to try to convince Congress and the White House to allow the company to keep using certain tax breaks in order to keep its own rates low. The retail giant hired a tax lobbyist named Joshua Odintz, who formerly worked as a Democratic aide on Capitol Hill and then as an official in the Obama Administration. In addition to Amazon’s own efforts, similar lobbying has been undertaken by a group known as the “R&D Coalition,” which consists of several companies and organizations including Amazon, Intel, and the National Association of Manufacturers.

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Study: Ohio COVID-19 Vaccine Lottery Failed to Increase Rates

The Center Square

Giving away millions of federal tax dollars and hundreds of thousands of dollars in college scholarships did nothing to improve Ohio’s COVID-19 vaccination rate, a recent study concluded.

Those results have Democratic leaders saying the state needs to do more to address vaccine hesitancy and deal with what they call root causes of Ohio’s stagnant vaccination rate.

The study, conducted by the Boston University School of Medicine using information from the Centers for Disease Control and Prevention, concluded reports that the state’s Vax-a-Million lottery program increased rates failed to factor in vaccinations expanded to ages 12-15.

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Lumber Demand Drives Georgia Home Prices Higher

The Center Square
A beige house in a suburban community during the day

A spike in lumber prices has compounded the state’s housing crisis, Georgia housing advocates said.

The price of lumber increased by 300% this spring compared with the same time last year, reports show. The building material reached an all-time high of $1,515 per thousand board feet on May 28.

The price of oriented strand board, which is most often used for sheathing, has increased by 400% since last spring.

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Business Groups Slam Biden’s ‘Flawed’ Competition, Antitrust Executive Order

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Joe Biden

President Joe Biden’s competition and antitrust executive order will harm American consumers, groups representing both large and small businesses said.

The leading groups — including the Chamber of Commerce, Job Creators Network (JCN) and the National Association of Manufacturers (NAM) — slammed Biden’s executive order, arguing that it will harm competition and present a host of challenges to small businesses. The business groups said the order is an example of big government attempting to exert control over the free market via onerous rules and regulations.

“This executive order amounts to a bizarre declaration against American businesses, from the largest to the smallest,” Small Business and Entrepreneurship (SBE) Council Chief Economist Raymond Keating said in a statement. “It’s hard to understand why a White House would go down such a path, especially as the economy is digging out from the COVID-19 disaster.”

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Jobless Claims Increase to 373,000, Above Economists’ Predictions

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The number of Americans filing new unemployment claims increased to 373,000 last week as the economy continues to recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a slight increase in the number of new jobless claims compared to the week ending June 26, when 371,000 new jobless claims were reported. That number was revised up from the 364,000 jobless claims initially reported last week.

Economists expected Thursday’s jobless claims number to come in around 350,000, The Wall Street Journal reported.

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Study: Michigan’s Vaccine Lottery Unlikely to Boost Lagging COVID-19 Injections

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COVID Vaccine sticker

After Michigan missed President Joe Biden’s vaccine deadline of 70% injected with a first COVID-19 vaccine by July 4, Gov. Gretchen Whitmer bet big on a vaccine lottery, tossing in $5 million of taxpayer-funded prizes.

In the meantime, the Michigan Senate Fiscal Agency estimates Michigan won’t reach the 70% benchmark for another year.

As of July 5, the state averaged 4,174 daily doses but only 1,740 first doses (0.1%) of the population.

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Virginia Extends Expanded Childcare Subsidies for the Rest of the Year

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Additional childcare subsidies provided during the COVID-19 pandemic will be extended until the end of 2021, Virginia Gov. Ralph Northam announced Wednesday.

The state program, which provides financial assistance for childcare services, temporarily loosened the eligibility requirements through July 31, 2021. Northam directed the Virginia Department of Education to continue covering copayments through December 31, using federal COVID-19 relief funds.

“Access to high-quality child care is not only critical to the health and safety of Virginia’s children, but it is also important for advancing a strong, equitable recovery,” Northam said in a statement. “Extending these resources through the end of 2021 will help close the affordability gap for parents and providers, allowing thousands of Virginians to return to work, support their families, and grow our economy.”

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Commentary: China’s ‘One-Child Policy’ Left at Least One Million Bereaved Parents Childless and Alone in Old Age, with No One to Take Care of Them

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A child’s death is devastating to all parents. But for Chinese parents, losing an only child can add financial ruin to emotional devastation.

That’s one conclusion of a research project on parental grief I’ve conducted in China since 2016.

From 1980 to 2015, the Chinese government limited couples to one child only. I have interviewed over 100 Chinese parents who started their families during this period and have since lost their only child – whether to illness, accident, suicide or murder. Having passed reproductive age at the time of their child’s death, these couples were unable to have another child.

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Florida Braces for Booming, Banging Return to July 4th ‘Normal’

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fireworks

Independence Day 2020 was a lackluster affair for many, made all the sadder by attempts to celebrate July 4 amid pandemic-induced isolation without the parades, public firework shows and other communal and family gatherings that traditionally accompany the summer holiday.

The city of Miami and others staged “virtual fireworks displays” and at least 60 Florida communities made attempts to stage public events, including socially distanced parades, but with about 80% of traditional observations canceled, July 4, 2020, was nothing to celebrate.

Not so for July 4, 2021.

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Michigan Employment Numbers Pick Up Pace for State’s Pandemic Recovery

The Center Square
Blue Collar worker with hard hat on

Michigan’s recovery from the massive unemployment endured during the COVID-19 pandemic is among the fastest in the country, last week’s employment numbers indicate.

That assessment is according to a recently released WalletHub report, which ranked the state fifth nationwide for progress made between the previous week and the week of June 21, 2021, and fourth nationwide for the smallest increase in initial unemployment claims between the beginning of 2020 and the week of June 21, 2021.

Michigan was ranked 13th nationwide for quickest unemployment recovery since the beginning of the pandemic in March 2020.

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July Ushers in Georgia Income Tax Cut, New Business Incentives

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New laws that will cut income taxes for Georgians and increase tax incentives for businesses go into effect Thursday with the start of a new fiscal year.

Dubbed the Tax Relief Act of 2021, House Bill 593, raises the standard deduction on state income tax returns for a single taxpayer by $800 to $5,400 and by $1,100 to $7,100 for a married couple filing a joint return, starting in the 2022 tax year.

HB 593 created the second tax cut of its kind in three years. It will cut income taxes by more than $600 million collectively over the next five years. The Georgia Legislature doubled the state’s standard deduction under the Tax Cuts and Jobs Act in Georgia in 2018.

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Economy Added 850,000 Jobs in June, Well Above Economists’ Forecasts

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The U.S. economy reported an increase of 850,000 jobs in June and the unemployment rate ticked up to 5.9%, according to Department of Labor data released Friday.

Total non-farm payroll employment increased by 850,000 in June, according to the Bureau of Labor Statistics report, and the number of unemployed persons increased to 9.5 million. Economists projected 700,000 Americans would be added to payrolls prior to Friday’s report, according to The Wall Street Journal.

“This is a trickier phase of the recovery,” Wells Fargo senior economist Sarah House told The New York Times.

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