Summer Promises A Bumpy Ride

McConnell will hold China bill hostage If Democrats move reconciliation measure. In what may be a hint that Democrats are closing in on a scaled-back climate, social spending, and tax bill, Senate GOP Mitch McConnell made a new threat late last week. He warned if Democrats move the measure on a party-line vote, Republicans will scuttle a bipartisan measure aimed at making the US more competitive with China in semiconductors and other industries. The House and Senate have been trying for months to agree on compromise version of the China bill. No Senate Republicans will vote for a scaled-down Build Back Better bill.

House Appropriations passed the final two of 12 required funding bills. The panel approved the bills to fund the departments of Labor, Health and Human Services; and Housing and Urban Development. The Senate has yet to consider spending bills for fiscal 2023. Quoting Bette Davis in “All About Eve,” House Appropriations Chair Rosa DeLauro concluded, “’Fasten your seat belts, it’s going to be a bumpy ride…’ That’s what July is going to be all about.”

Did the GOP urge Hungary to stall the EU’s international tax bill? The Washington Post reports that US Republican operatives are working with Hungary’s right-wing government to block the European Union’s agreement on a 15 percent global minimum tax. Says a member of Hungary’s government, “We are constantly consulting with the Republicans. There is a constant professional consultation on this issue.” The EU requires unanimous agreement from its member nations to move the plan, though the group may have a work-around.

Gas tax relief in two states. Georgia Gov. Brian Kemp extended the motor fuel tax holiday for another month by executive order last week. It was scheduled to end July 14 but now will last until August 13. Illinois delayed the scheduled automatic increase in its gas tax for six months, keeping it steady at 39 cents per gallon.

But gasoline taxes are going up elsewhere. Missouri’s gas tax climbed by 2.5 cents to 22 cents per gallon on Friday as scheduled. Maryland’s gas tax rose 7 cents to 42 cents, and Virginia’s went up 3 cents to 28 cents. These states all automatically adjust their gas taxes for inflation.

New Jersey budget passes $50.6 billion budget with property tax relief. The $2 billion program known as ANCHOR simplifies and expands New Jersey’s Homestead Rebate, and provides tax credits of up to $1,500 for homeowners and $450 for renters. Gov. Phil Murphy says the program will cut property taxes by 16 percent for the average New Jersey homeowner.

India imposes a windfall profits tax on oil exporters. The government says it wants to raise new revenue from the producers’ higher overseas profits and increase domestic fuel supplies to meet rising demand.

Congress is not in session. The Daily Deduction will resume its regular schedule on Monday, July 11.

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