Debt ceiling talk, big pharma, small business

The next meeting between President Biden and congressional leaders has been delayed until next week, but staff are making progress. Although time is short, House Minority Leader Hakeem Jeffries (D-NY) indicated that there are good reasons to delay the next meeting of the White House and House and Senate leadership. “There have been some very good discussions at the staff level over the last few days,” Jeffries said politics. “And I think the decision was made collectively, with the leadership of the White House, to keep those staff conversations going.”

If the country defaults on its debt, thank Main Street, not Wall Street… TPC’s Howard Gleckman writes about the enormous influence that Main Street businesses have over members of Congress. He argues that Main Street may not be willing to pay the price of default for just a slightly improved chance of shrinking government the way they prefer.

Report: The TCJA has cut big pharma tax rates by more than 40 percent since 2017. A report by Democrats on the Senate Finance Committee said the Tax Cuts and Jobs Act would have allowed US-based pharmaceutical companies to access lower tax rates on their foreign earnings. The panel said at a hearing yesterday that AbbVie, Abbott Laboratories, Amgen, Bristol Myers Squibb and Merck all report most of their tax income overseas.

Governor Lee signs Tennessee’s “one of the largest tax cuts in state history.” Republican Governor Bill Lee signed the Tennessee Jobs Tax Act into law. The legislation provides more than $400 million in tax cuts. That includes $273 million for a one-time, three-month sales tax holiday on groceries from August to October.

Indiana’s gas tax is about to go up. Starting July 1, Hoosiers will pay an extra penny per gallon in state gas taxes, for a total of 34 cents per gallon. It is an inflation-linked annual increase that finances infrastructure projects. A one-cent increase would generate about $30 million in revenue, state data shows. The annual inflation adjustment expires in 2027.

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deductions. Sign up here Get it delivered to your inbox by 8:00 a.m. weekdays (only on Mondays when Congress is in recess). We welcome tips on new research or other news. Email to Renu Zaretsky [email protected].

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