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Tax deal faces obstacles as crucial markup looms on January 19, 2024 at 10:30 am Business News | The Hill

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A deal reached this week by top tax writing committees in Congress faces a number of hurdles in the House and Senate. 

Ahead of a Friday markup scheduled for the bill in the House Ways and Means Committee, lawmakers in both chambers have concerns about how exactly the $70 to $80 billion in tax relief will be divided between an expansion of the child tax credit (CTC) and deductions for businesses.

The Democratic left flank says the bill allots too little for the CTC and restores business credits that were already offsetting a 2017 reduction in the corporate tax rate.

“We should demand more of ourselves than going along with a deal that gives big corporations billions and billions of dollars more in tax breaks than help for struggling families. It just makes no sense at all,” Sen. Elizabeth Warren (D-Mass.) told reporters Wednesday.

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“The fact that we’re not prioritizing children first as a country and understanding that that will help our economy, businesses and future entrepreneurs – the whole thing is sort of ridiculous,” Sen. Cory Booker (D-N.J.) said Wednesday.

Republicans argue the CTC expansion is too generous and that people should be working harder to qualify for the credit.

“There are some things that shouldn’t be in there, some of the things on the CTC, for example. It’s always been connected to work. You can get it for one year, but then you can get the thing for two successive years without working,” Sen. John Thune (R-S.D.) said Wednesday. “They increased the refundability amount and indexed the overall credit [to inflation]. There are some things in there that I’ve got to take a look at.” 

Revenue tables for the bill hadn’t been released to the public as of Thursday, but the proposal from the Ways and Means Committee allows taxpayers in 2024 and 2025 to use income estimates from prior taxable years in calculating their credit.

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Conservatives are troubled that this would mean people who would have to work less to claim the credit — a major sticking point in past efforts to expand the CTC.

“This policy would cut the CTC’s current annual work requirement in half by allowing parents to claim the CTC for two years while working in just one,” Matt Weidinger, a senior fellow with the conservative American Enterprise Institute, wrote in a Wednesday analysis of the proposal.

Beyond disagreements about the substance of the deal, there are procedural questions about what larger package the tax proposal could be attached to, or whether it would be its own separate bill. Standalone tax bills are relatively rare pieces of legislation.

“I think probably it will be a standalone bill,” Rep. Tom Cole (Okla.), a senior Republican appropriator, told The Hill Wednesday. “We’re having enough challenges moving appropriations bills. I don’t know why you’d want to add something else to them right now.”

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“I have a lot to criticize in the bill, but I think this is the best we can get at this particular time, realizing the precarious situation that [Speaker Mike] Johnson [R-La.] is in,” Ways and Means Committee member Bill Pascrell (D-N.J.) told The Hill.

Johnson is under pressure from House conservatives to support steeper cuts and stricter immigration policy despite the speaker already striking a bipartisan funding agreement with Senate Majority Leader Chuck Schumer (D-N.Y.).

While Schumer endorsed the deal on the Senate floor Tuesday and Wednesday, and specifically its expansion of low-income housing credits, Johnson still hadn’t weighed in on the deal as of Thursday morning.

Experts on the Congressional tax negotiations process told The Hill the bill is just at the beginning of its journey on the way to becoming a potential law and that the changes to it could be manifold.

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“I just have a sense that we may see changes in the markup in Ways and Means, and once we get to the Senate, the Senate always gets its own stuff,” former Ways and Means Committee tax counsel Marc Gerson said in an interview. “And so what we have is a base bill … and I think it’s going to change.”

One source of pressure for more changes to the bill is the $10,000 cap on the state and local tax (SALT) deduction imposed through Republicans’ 2017 Tax Cuts and Jobs Act (TCJA).

Blue-state Republican lawmakers representing districts with high local taxes have insisted on raising the SALT cap in any tax measure.

“I’m a no on a tax package that does not have adequate relief for SALT,” Rep. Nick LaLota (R-N.Y.) told The Hill. 

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“In high-tax blue states, it’s a popular thing to be pro-SALT, but to also fight for it. And I’m willing to fight for my constituents by voting no against my own party’s tax package unless and until it has meaningful relief on SALT,” he added.

Top tax writers in both chambers say there’s plenty of room to maneuver to get the deal done, specifically with the cancellation of the employee retention tax credit (ERC), which would serve as the deal’s main source of new revenue.

“There’s room on that,” Rep. Richard Neal (D-Mass.), ranking member of the House Ways and Means Committee, told The Hill on Wednesday.

“There’s a lot of moving parts that could bring a lot of Democrats along. We could make some adjustments based on the score [to] refundability on the child tax credit. There’s no inherent hostility on our side to some of the provisions, but we want them better paired with our requests for equitable purposes,” he said.

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Neal said he “speculated” that the lion’s share of the roughly $78 billion in tax relief was now going to business credits rather than the expanded CTC. 

“With a little bit more raising the ceiling, we could accomplish all the priorities that the members desire,” he added.

IRS Commissioner Danny Werfel was on Capitol Hill last week briefing the Senate Finance Committee on fraudulent activity associated with the ERC claims, which lawmakers say has been rampant as a result of intensive marketing a promotion by lawyers and accountants in the tax prep industry.

“We heard from a whistleblower that with these new claims, 95 percent of them were fraudulent,” Senate Finance Committee chair Ron Wyden (D-Ore.) told The Hill Wednesday. “I asked the commissioner if that was right, and he said, basically, ‘Yes.’”

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Enthusiasm for the deal is also high with Wyden’s counterpart on the Senate Finance Committee, ranking member Mike Crapo (R-Idaho).

“The agreement announced … by Chairman Smith and Chairman Wyden is a thoughtful starting point for the House to begin the process,” Crapo said Tuesday.

A White House spokesperson told The Hill the White House looks forward to reviewing the full details of their agreement and supports the work of the tax-writing committees on the CTC and low-income housing.

Despite encouragement from the White House and at the committee level, lawmakers hardly think the tax deal is a lock.

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“I hope people don’t try to tamper with it too much, because I think it will all just fall apart,” Cole said.

​Business, Domestic Taxes, House, American Enterprise Institute, Bill Pascrell, business taxes, Child Tax Credit, Chuck Schumer, Cory Booker, Danny Werfel, Elizabeth Warren, Mike Crapo, Nick LaLota, Rep. Mike Johnson, Richard Neal, Sen. John Thune, Sen. Ron Wyden, Tax credits, tax fraud, taxes, Tom Cole A deal reached this week by top tax writing committees in Congress faces a number of hurdles in the House and Senate. Ahead of a Friday markup scheduled for the bill in the House Ways and Means Committee, lawmakers in both chambers have concerns about how exactly the $70 to $80 billion in tax relief…  

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The Cities Bracing for Trump’s Immigration Crackdown

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In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.

Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.

Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.

Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.

In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.

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Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.

These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.

As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring filmmakers. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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How Trump’s Deportation Plans Could Reshape Major Cities

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In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.

The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.

Economic Tremors

Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.

Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.

Community Fabric Under Strain

Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.

Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.

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Cities at a Crossroads

As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.

Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.

Looking Ahead

As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.

What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.

As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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Donald Trump Wins 2024 USA Election

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Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:

Electoral College Victory

Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.

Battleground State Performance

Trump’s victory was largely secured by winning several critical swing states:

  • Wisconsin: Trump’s win here was pivotal in securing his path to victory.
  • Pennsylvania: This state flipped back to Republican control.
  • Georgia: Another key state that Trump managed to win back.
  • Michigan: Trump successfully flipped this traditionally Democratic stronghold.

While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:

Congressional Control

The election results extend beyond the presidency:

Media Implications

The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:

  1. Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
  2. Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
  3. Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
  4. Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
  5. Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.

It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.

As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.

Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!

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