![]() ![]() This assistance is means-tested because higher-income households get less assistance than lower-income households. Health expenses like deductibles and copayments for medical services. It was a missed opportunity of extraordinary scale.Perspectives from expert contributors.The Affordable Care Act tries to make health insurance affordable by offering means-tested subsidies and tax credits to households so they can make their payments for monthly health insurance premiums and out-of-pocket Biden’s popularity at a low ebb and Democrats expected to lose control of at least the House in November, we’ve blown the chance for even greater transformational legislation. Instead, we got about $500 billion of new spending and tax breaks (along with about $300 billion of deficit reduction over the coming decade). Manchin, who voted for that plan and who was willing last summer to support a $1.5 trillion package, would likely have come on board. Imagine if the Biden administration had started its tenure by pushing for its more meritorious proposals that would have aided long-term economic stability instead of the superfluous and inflationary American Rescue Plan. ![]() Passed on a party-line vote, the provisions substantially increased the nation’s budget deficit and added to the inflation fires that have now become a major challenge for Democrats.įor legislative strategy reasons, the president’s other two packages were combined into a possible $3.5 trillion behemoth, which quickly met resistance from moderate Democrats concerned about the potential impact on the deficit and inflation. The first of his three planned packages, the almost completely unfunded $1.9 trillion American Rescue Plan, was mostly designed to counter the lingering economic effects of Covid via proposals that included more stimulus checks for individuals and more aid for states and localities, which proved unnecessary. Meanwhile, on the expenditure side of the ledger, we lost the chance to enact many other worthy initiatives, like continuation of the expanded child tax credit tuition-free community college parental leave and an augmented earned-income tax credit. Stockholders who sell back their shares can take that money and put it into other, more attractive investments, helping economic growth. Happily, that probably isn’t large enough to discourage many stock buybacks, but it’s still a step in the wrong direction.Ĭontrary to public impression, stock repurchases can be a positive for the economy responsible companies buy their own stock when they do not have a productive use for the capital. Sinema also insisted that certain elements of the new 15 percent corporate tax on “book” profits be rolled back - including one that would have adversely affected private equity - thereby creating a revenue hole that Democratic leaders chose to plug largely by adding a new 1 percent tax on stock buybacks by companies. In addition to added complexity, this change creates the potential for companies to manipulate their tax obligations by tinkering with accounting methodologies that the Internal Revenue Service would be unable to oversee. ![]() were forced to resort to adopting a new method of taxing the profits of large corporations - assessing them based on a company’s reported income under generally accepted accounting principles (known as GAAP) rather than based on computations dictated by the tax code. Schumer and other architects of the I.R.A. ![]()
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