April 18, 2022

U.S. Supreme Court snubs challenge to state and local tax deduction cap

Source: Reuters

The U.S. Supreme Court on Monday rejected a bid by four Democratic-leaning states to lift a cap on federal deductions for state and local taxes put in place as part of a 2017 tax overhaul under Republican former President Donald Trump.

The justices turned away an appeal by New York, Connecticut, Maryland and New Jersey after a lower court threw out their lawsuit. The lower court held that the U.S. Congress had broad authority over taxes and did not violate the U.S. Constitution by placing a $10,000 limit on the amount of state and local taxes that individuals may deduct on federal income tax returns.

Democratic President Joe Biden's administration opposed the four states.

The deduction limit, known as the SALT cap, was part of a Republican-backed federal tax law signed by Trump that slashed the corporate tax rate and implemented an income tax cut for individuals, which tax policy experts said benefited wealthy Americans the most.

Democrats had opposed the law, which was expected to reduce federal revenues by $1.5 trillion over 10 years. Capping the deduction disproportionately affects high-tax, often Democratic-leaning states, with New York estimating its taxpayers would pay $121 billion of extra federal taxes from 2018 to 2025.

Read more: https://www.reuters.com/legal/government/us-supreme-court-snubs-challenge-state-local-tax-cap-2022-04-18/

April 14, 2022

First look: Sinema raises $1.6 million during Q1

Source: Axios

Sen. Kyrsten Sinema (D-Ariz.) raised $1.6 million during the first quarter of 2022, and nearly 75% of her contributions totaled less than $100, Axios has learned.

Why it matters: It's a lot of money for a senator who isn't up for reelection until 2024, and isn't a member of leadership or a committee chair. The numbers also give Sinema, a key holdout alongside Sen. Joe Manchin (D-W.Va.) in the 50-50 Senate, something to point to amid their controversial record of bucking the party.

The fact that 3/4 of her contributions were less than $100, and more than 97% of contributions came from individuals, shows her support from small-dollar donors.

That's a coveted demographic among both parties.

What they're saying: A Sinema campaign spokesperson attributed the numbers, in part, to Sinema's work on the bipartisan infrastructure bill and reauthorization of the Violence Against Women Act.

Read more: https://www.axios.com/sinema-16-million-fundraising-c18645d0-7fc4-4c71-9baa-ee12b24c5951.html

April 14, 2022

Mortgage rates hit 5%, highest in more than a decade

Source: Axios

The average rate on a 30-year mortgage hit 5% this week for the first time since 2011, according to widely cited data from Freddie Mac.

Why it matters: It's becoming increasingly expensive to buy a house — if you can even find one. Over the past three months, mortgage rates have surged at a pace last seen in 1987.

At the same time, the home-buying frenzy driven by the pandemic has reduced the available supply of single-family houses. The number of home listings was at a record low last month, according to realtor.com data.

Open houses around the country with a line of folks waiting out the door are not uncommon.

Bottom line: It's going to be hard for first-time buyers to afford a house, but it'll likely be a while before the real estate madness moderates.

Read more: https://www.axios.com/mortgage-rates-highest-since-2011-430fc8ba-68ac-4e06-8ca6-2ba65c6ee3f8.html

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This, along with the explosion of rent prices, are going to be the largest headwinds against us in November.

April 3, 2022

Biden rebuffed as US relations with Saudi Arabia and UAE hit new low

Posted here b/c it's analysis:

As Joe Biden moved to open US strategic oil reserves, his two biggest oil-producing allies have kept their tanks firmly shut. The UAE and Saudi Arabia continue to rebuff the US president as he attempts to counter soaring oil prices prompted by Russia’s invasion of Ukraine. And both countries have been unusually frank about their refusal to step in.

The five-week-old war is bringing tensions to a head in several parts of the world, but perhaps nowhere is a regional order more under strain than the Middle East, where two of America’s biggest allies are now seriously questioning the foundations of their relationship.

The Saudi and Emirati refusal to bail Biden out – or even to take his calls – has pushed relations between the Gulf states and Washington to an unprecedented low. The extraordinary flow of Russian wealth to Dubai, just as the US and Europe try to strangle Putin’s economy, has inflamed things further.

Add to that the still-sputtering talks between Washington and Tehran, which could see sanctions reprieves in return for Iran returning to the Obama-era nuclear deal, and there are clear signs of a faltering friendship – with the potential to rewrite the geopolitics of the region.

https://www.theguardian.com/us-news/2022/apr/03/us-relations-saudi-arabia-uae-oil-crisis