Treasury Secretary Yellen does not expect a recession this year. In an interview with Bloomberg Television yesterday, Treasury Secretary Janet Yellen said that while US economic growth has slowed, “our labor market continues to be quite strong – I don’t expect a recession.” She added that the economy is on a “good path” to curb inflation without significantly weakening the labor market.
House Republican centrists demand changes to the TCJA SALT deduction limit. Politico reports the group is not planning to let the House GOP’s $240 billion tax plan reach a floor vote without a fix for the Tax Cuts and Jobs Act’s limit of $10,000 for state and local tax (SALT) deductions. Repealing the SALT cap would be costly, and some Republican lawmakers want to keep the cap in place. The SALT cap expires after 2025.
AmeriCorps volunteers helped low-income Americans find a record $84 million in tax breaks in 2023. Over 1,890 volunteers offered assistance to over 113,000 taxpayers in the 2023 tax season, working with local nonprofits to help ensure eligible low-income taxpayers receive available tax breaks and credits. With their tax preparation services, AmeriCorps volunteers generated more than $69 million in 2022 tax returns, equaling a value of $36,721 per volunteer. AmeriCorps is a volunteer and national service organization established in 1993.
New York State’s tax revenue dropped by nearly $7 billion in the first quarter of the fiscal year. State Comptroller Tom DiNapoli reported revenues of $27.6 billion in the first quarter of the fiscal year beginning April 1. While the amount is $450.8 million more than projected, it is $6.8 billion less than collections in the first quarter of the previous fiscal year. “While inflation has eased and hiring has held up, consumer spending has slowed in recent months and some tax collections are showing signs of weakness,” DiNapoli said.
A tax holiday is canceled (or forgotten). A three-day suspension in August of Virginia’s 5.3 percent sales tax might not happen after all. The annual sales tax holiday for school supplies, clothes, and shoes was not renewed by lawmakers. One Republican state lawmaker called the tax holiday expiration a mistake. Lawmakers still have time to revive the holiday, however, since they have not yet passed a state budget.