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Overview: Although there have been some indications that Congress is closer to an agreement on a budget reconciliation bill, most media outlets report that discussions about what to include in the bill, and at what cost and over how many years, will likely continue. The president seems to be focusing his efforts on two legislators - Sen. Kyrsten Sinema (D-Ariz.), who is not in favor of taxes on corporations and the wealthy, and Sen. Joe Manchin (D-W.Va.), who is not in favor of some of the climate provisions - in order to get full support for his agenda. Considering the bill more broadly, one view is to pass a bill with many social programs but limited for a short time. Another opinion is to prioritize critical programs for those most in need by income. Instead of making these programs permanent, they could be targeted for people in need or linked to an "income-related contribution as a condition of eligibility" (Source). The latter strategy seems to be favored. Jobs: In the week ending October 16, the advance figure for seasonally adjusted initial [unemployment insurance] claims was 290,000, a decrease of 6,000 from the previous week's revised level. This is the lowest level for initial claims since March 14, 2020 when it was 256,000. The previous week's level was revised up by 3,000 from 293,000 to 296,000. The 4-week moving average was 319,750, a decrease of 15,250 from the previous week's revised average. This is the lowest level for this average since March 14, 2020 when it was 225,500. The previous week's average was revised up by 750 from 334,250 to 335,000. (Source) Budget reconciliation: Negotiations regarding the budget reconciliation package are ongoing. What started as a $3.5 trillion social spending bill is likely to be trimmed to close to $2 trillion. The Democrats seem to be selecting a subset of programs from the larger bill to focus on: tax and climate provisions, medicare, and issues around housing and child tax credits. The main issue is how to pay for the programs. According to Bloomberg Government, President Biden said he did not think he could get the votes to raise corporate tax rates, so he will have to depend on other tax proposals to pay for the programs. On Oct. 14, CCUSA sent a letter to Congress urging members to prioritize the needs of people struggling with low incomes and poverty, with a special emphasis on affordable housing and the Child Tax Credit. Other priorities include child care, EITC, paid family leave, job training and the protection of life, among others. These and other items were also mentioned in a previous letter sent to Congress in August 2021. (Check out The Hill's opinion piece.) Debt ceiling: The debt limit has been raised by $480 billion through Dec. 3. Raising the debt ceiling does not authorize new spending; the move raises money to pay for expenses that the government has previously authorized. Congress must still deal with the debt ceiling by Dec. 3 or face dire financial consequences if the U.S. cannot pay its bills. Affordable housing: CCUSA submitted testimony on housing to the House Financial Services on behalf of the Catholic Charities ministry in the United States. The testimony detailed the many ways Catholic Charities agencies help people with housing. The specific recommendations included expanding rental assistance to serve an additional 1 million households, funding to build and preserve homes for low-income and marginalized people through the National Housing Trust Fund, and preserving the nation's public housing stock. Read the full testimony here. The Consumer Financial Protection Bureau offers a web-based tool for users to find help with rent and utilities. Access the tool here. Child Tax Credit: "The Democrats may extend the more expansive child tax credit for only one year instead of until 2025. A single-year renewal of the child tax credit, rather than an extension through 2025 that Democrats had previously contemplated, would trim hundreds of billions of dollars of spending from the legislation. A one-year extension costs $106.5 billion, compared to $556 billion for four years, according to estimates from the Joint Committee on Taxation." (Bloomberg Government) Read an article about the latest negotiations on the child tax credit. There is still time to sign up for child tax credit payments before the Nov. 17 deadline, and you do not need to pay taxes to receive the benefit. Click here to sign up with the easy tool. |
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