Fiscal Policy

WASHINGTON (AP) — House Democrats added a new paid family leave program, immigrant work permits and a state-and-local tax break to President Joe Biden’s $1.75 trillion social services and environmental bill Wednesday, reviving key priorities in the rush to finish up and start voting after dismal overnight election results.

Using the tax-to-GDP ratio, we compare the tax systems of 35 OECD countries. See which nations have the highest and lowest rates.

WASHINGTON (AP) — The White House and Democrats are hurriedly reworking key aspects of President Joe Biden’s $2 trillion domestic policy plan, trimming the social services and climate change programs and rethinking new taxes on corporations and the wealthy to pay for a scaled-back package.

It's mid-July, a particularly important date this year for parents. No, I'm not talking about the Advance Child Tax Credit payments that started going out today. I'm talking about the imminent arrival of the 2021-22 school year. With the COVID-19 pandemic somewhat under control — Be gone, Delta variant and everyone please get vaccinated! — schools across the country will be opening this year. Yes, that sound you hear over the internet is millions of parents celebrating. Tax holidays, too: That other sound you hear is taxpayers, both parents and child-free, celebrating, too, because the annual back-to-school tax holidays also...

Since Gov. Gretchen Whitmer announced a $5 million lottery pool for those getting the COVID-19 vaccine, she’s touted that 1 million have signed up for the lottery — but the state cannot say if it’s luring more people to the shots. Several local health officials say it hasn’t.

A House bill would bar 24 Michigan cities from imposing taxes on non-resident workers. Critics say that would be ‘catastrophic,’ but one Republican says ‘Thomas Jefferson would be proud.’

The Senate on Tuesday passed the U.S. Innovation and Competition Act, a $250 billion bill aimed at countering China's technological ambitions.

JEFFERSON CITY, Mo. (AP) — Just a year ago, the financial future looked bleak for state governments as governors and lawmakers scrambled to cut spending amid the coronavirus recession that was projected to pummel revenue.

Nearly $1 billion in federal funding would go to Michigan small businesses, payroll and childcare under Gov. Gretchen Whitmer's economic restart plan.

LANSING — Gov. Gretchen Whitmer on Thursday proposed spending $300 million in federal COVID-19 funding to help Michigan businesses pay workers $15 an hour. State grants would cover the difference between an employee's current hourly wage and $15 for three months, as long as the business…

The president's budget details his ambitious (and costly) plans to invest in infrastructure and the social safety net — the likes of which the country hasn't seen in decades.

LANSING — Michigan's main funds will take in an estimated $3.5 billion more in taxes than previously forecast thanks to increased consumer spending of federal stimulus checks and other coronavirus relief funds, state officials said Friday.The surplus, spread over this fiscal year and next,…

Looking to the future, Biden urged a $1.8 trillion investment in children, families and education that would fundamentally transform roles the government plays in American life.

Though it was expected, the news still jarred Wall Street

LANSING — Republicans who control the Michigan House unveiled a plan Tuesday to spend federal COVID-19 aid, including a proposed $1.6 billion for road, water and broadband infrastructure.The supplemental budget legislation, which a committee will start to discuss Wednesday, would allocate …

Detroit leaders will soon start to decide how to spend a once-in-a-generation pot of money that could have a truly transformational impact on the pandemic-addled city.Michigan's biggest municipality is getting an estimated $879 million out of the $350 billion allocated for state and local fiscal…

The national debt continues to rise while our leaders struggle to pass a federal budget. Can you do better? Here’s your chance to find out.

NEW YORK (AP) — Newly vaccinated and armed with $1,400 stimulus checks, Americans went on a spending spree last month, buying new clothes and going out to eat again. Retail sales surged a...

March retail sales are expected to be strong, and some economists say stimulus checks may have contributed to an even bigger gain of 10% or more.

The top 1% of New Yorkers paid $4.9 billion in local income taxes in 2018, accounting for 42.5% of the income tax collected by the city

What 7-Eleven did to fountain soda, President Biden wants to do to US infrastructure

The Treasury secretary dropped hints about her priorities — if you know how to interpret them.

A pair of proposals would invest in infrastructure, education, work force development and fighting climate change, with the aim of making the economy more productive.

Did you know that most people have to file tax returns for BOTH federal AND state income taxes? Listed below are 8 states that do not (as of 3/16/2021) have state income taxes.  Answer: 8 states including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming Note: New Hampshire taxes investment income but will eliminate those taxes by 2024.    Questions: How does your state's tax rate compare to other neighboring states?  Do you think that states that have high state income tax rates (e.g., CA and NY) have to pay higher salaries to compensate employees for these high taxes? Why or why not? Can you name common taxes that people pay other than state and federal income taxes?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Audits aren't catching "sophisticated" evasion strategies like offshoring and pass-through business setups

The landmark $1.9 trillion economic stimulus bill President Joe Biden is expected to sign this week promises to be a windfall for local governments in Michigan. Michigan counties, cities and townships are in line to receive $4.22 billion in stimulus aid from the American Rescue Plan, according…

In light of the unprecedented financial turmoil currently taking place in the United States and around the world due to the COVID-19 pandemic, Teaching Fiscal Policy in the COVID Era explores how a black swan event can put extraordinary pressure on the nation’s economy, the financial well-being of citizens and how Governments respond to address such challenges.

The city of Detroit is targeting a crowd of investors that's rising in popularity during the pandemic to buy the bonds it's issuing to pay for blight removal efforts. Under Proposal N, approved by voters in November, Detroit is taking on debt to fuel the $250 million project and expects to…

LANSING — Gov. Gretchen Whitmer today will propose a $67 billion state budget that she said would aid Michigan's pandemic recovery by solidifying new programs to attend community college for free, expanding child care assistance and boosting local bridge repairs.The Democratic governor's…