Two key Senate Republicans reached an agreement on the framework of a major tax cut that reportedly will save taxpayers $1.5 trillion over 10 years. Senators Bob Corker (R-Tenn.) and Pat Toomey (R-Pa.), members of the Senate Budget Committee, released a statement saying they agreed on a path toward tax cuts. Sen. Toomey has favored tax cuts but Sen. Corker had previously opposed any tax cuts that would add to the country’s $20 trillion of debt. In backing off that stance, Sen. Corker opened the path for the Senate to pass a tax-reduction bill, but Senate passage would be only
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This year, however, the movie is a real thriller and no one knows how it’s going to end on December 31. No one knows if tax laws are going to change, much less how they will change, but a lot is at stake. For example, a proposal that has received bipartisan support would treat an IRA left to your children differently. Under current rules, non-spousal heirs who inherit an IRA can take distributions over the course of their own lifetimes, allowing children to delay withdrawals for decades in many cases, and their balances can grow tax-deferred or even tax-free for many years.
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The Federal Reserve’s August beige book forecasted broad-based, steady growth that is neither too hot nor too cold, a “Goldilocks economy.” It’s an ideal environment because it suggests the Fed will not feel compelled to hit the monetary brakes any time soon, particularly with inflation slowing down. The Institute of Supply Management’s survey of corporate purchasing managers index came in this week at a very strong 58.8% for August. This indicator historically has slumped below 50% just before the economy fell into recession, although it has slipped below 50% even in a period of expansion. The new orders component of
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The financial press consistently is reporting inaccurately about real consumer income – which accounts for 70% of economic activity. Even the best outlets for news are making the same mistake. The false and gloomy narrative, which is being repeated across all of the major media outlets we checked, showed up in The New York Times today. “The bad news is that wages and incomes are rising more slowly than what has been normal in recent decades,” says Neil Irwin, whose economic analysis is otherwise accurate. Mr. Irwin’s column is reliably valuable, but today it left out important facts about consumer income in
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Our “blog machine” is back up and running. As you know, I’ve referred to my blog in the past as “Riding the Rockies” but this morning, I’m going to refer to it as Riding the Wave since we’re talking about the impacts of Hurricane Harvey on the southern regional economy and on the nation.   First, our thoughts and prayers go out to the victims of what may emerge as the largest natural disaster in the history of the nation. Your “Alpha” team is watching this pretty carefully and there has been discussion about buying a motorized semi-rigid inflatable and
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