IRS makes it easier to use your retirement account as an ATM
For years, many Americans have struggled to build emergency savings and it’s only gotten worse with inflation and high interest rates since the COVID-19 pandemic. According to Bankrate, nearly 6 in 10 U.S. adults don’t feel comfortable with their level of emergency savings, and 27% have no savings at all.
However, the IRS is now making it easier for Americans to get $1,000 when they need it in an emergency, which could be anything from unexpected medical expenses to car repairs or groceries.
The Setting Every Community Up for Retirement Enhancement Act (SECURE) has been undergoing changes since 2023. Under the new law, those who need it can now take $1,000 out of a traditional retirement account without penalty.
The money does not have to be paid back, but if it isn’t, income tax will have to be paid on it. People can only make a withdrawal once a year, then they have three years to put the money back in order to avoid taxes.
The retirement account balance cannot fall below $1,000. So, someone with $1,500 in their retirement account can only borrow up to $500.
Report: Feds, police are spying on the mail of thousands of Americans
Law enforcement has requested thousands of pieces of letters and packages every year for the past decade from the U.S. Postal Service without a court order. According to a report released on Monday, June 24, the Postal Service has mostly fulfilled the requests.
Data from 2015 through 2023 showed that federal agencies and state and local police made more than 60,000 requests to the Postal Service for information from Americans’ envelopes and packages. The Postal Service reportedly approved 97% of those requests.
The practice of monitoring mail goes back to 1879, when the U.S. Supreme Court ruled in a Fourth Amendment case that it was legal but required a warrant to be obtained in order to open a sealed letter. The Mail Covers Program has been used to track down suspects, find fugitives or compile evidence — as long as all the details obtained came from the outside of the package or envelope.
The Postal Inspection Service has previously been reluctant to release the full scope of activity within the program out of fears that it could “alert criminals” to the practice and jeopardize the program’s effectiveness.
For more than a year, a bipartisan group of senators has been demanding to know more about the surveillance program. In a June 2023 letter, they shared concerns over the spying on U.S. citizens and accused postal officials of keeping customers in the dark about the fact that they have been the subject of monitoring.
The lawmakers also wrote that sensitive information is still on the outside of the mail, encompassing things like bills and political mail, which can reveal a person’s political beliefs and other sensitive information, like the church they attend. The lawmakers requested a federal judge to sign off on the requests by law enforcement before getting the green light.
Chief Postal Inspector Gary Barksdale argued that Americans shouldn’t expect privacy when it comes to the outside of their mail, and contends that the spying is not widespread.
Barksdale said the Postal Service receives approximately 6,700 requests per year from law enforcement and the practice is only allowed for national security purposes and to help police in criminal investigations.
Dread filing taxes? Here’s why it’s so complicated and expensive.
Every year, Americans dread the first 3.5 months of the year as they navigate the complexities of filing a tax return or opt to pay a professional to do it for them. The Internal Revenue Service expects 146 million tax filings for the 2023 earning year. With so many people affected, one would think there is an incentive to simplify.
But in fact, there are incentives to keep the U.S. tax code complicated. Taxpayers benefit through credits and deductions, while the $13.9 billion tax preparation industry has a few obvious perks.
This year, the IRS launched a website to make free tax filing directly through the government available. However, few qualify for the pilot program that requires only the simplest tax returns from limited states.
The tax prep industry, notably TurboTax-owner Intuit and H&R Block, spent millions in lobbying efforts this past year to fight against a government-based free tax filing system, according to OpenSecrets. But elsewhere in the world, governments send citizens exactly what they owe in taxes and the free tax filing process can take as little as three minutes. In this article, Straight Arrow News speaks with the tax director of the country that has won the Tax Foundation’s “best tax code” 10 years in a row.
No wonder filing taxes in the US is so complicated
“Our U.S. tax code is quite complex and unique in that we of course use it to collect taxes and fund the federal government, but we also use it to administer a variety of social subsidies,” Andy Phillips, the director of the Tax Institute at H&R Block, said.
“That does create complexity,” Phillips told Straight Arrow News. “It also creates opportunities for taxpayers to use their tax return to their financial betterment.”
Phillips said one of the biggest mistakes taxpayers make when filing a return is not accounting for a major change.
“They get married, they have a kid, they start a business,” Phillips said. “And they don’t account for those tax changes when they file their tax return. Sometimes that’s a mistake that may subject them to an audit. More often than not, what it means is they’re leaving valuable tax benefits on the table.”
During a presidential debate in 2016, former President Donald Trump said he understood the tax code better than anyone who’s ever run for the office. He confidently disclosed taking advantage of a provision that allowed him to avoid paying future taxes by logging a $916 million loss.
While Trump has the means to and needs to employ high-powered tax attorneys and accountants to sort through his return each year, it takes the average American taxpayer roughly 13 hours and $240 to file each year.
Customer service representatives with the IRS spent 3.7 million hours answering questions from Americans during the 2022 tax season, according to the National Taxpayer Advocate.
What is the government’s new, free direct file program?
To ease some of the stress and difficulty in filing taxes, the federal government rolled out a pilot program this year that offers some Americans the opportunity to file directly with the IRS for free.
“There’s only a small number of taxpayers that are actually able to use the in-house government services at this point,” Anna Massoglia, editorial and investigations manager at OpenSecrets, said.
Our U.S. tax code is quite complex and unique in that we of course use it to collect taxes and fund the federal government, but we also use it to administer a variety of social subsidies.
Andy Phillips, director of the Tax Institute at H&R Block
The 12 states in the program either have no state income tax or have their own electronic filing system. However, the federal government has a rocky past with web development.
In 2013, when healthcare.gov launched as part of the Affordable Care Act, millions of Americans rushed to the website to shop for plans. Instead, the site was filled with bugs as users experienced crashes and other messages preventing them from checking out. In the aftermath, the White House said it never anticipated such heavy traffic on the first day.
While the IRS is taking smaller steps to mitigate problems with a website rollout, the program still faces opposition from some who think the government should stay out of their business.
“When it runs out on a much wider scale, it could potentially pose a threat to Intuit’s businesses every year,” Massoglia says.
Meanwhile, Phillips told Straight Arrow News there are dozens of other places that already provide free tax preparation services, including his company, H&R Block.
“We have a free product that offers support for more than 40 forms,” he said. “That’s more than what’s offered in the direct file program. That’s more than what’s offered by some of our biggest competitors, including TurboTax. And so while yes, that program is free, at H&R Block, we also have a free DIY product and we’re pretty confident that we’re doing free better.”
How the tax prep industry fought government’s free file
The U.S. tax prep services industry is worth roughly $14 billion, according to estimates. Tens of millions of Americans use the two biggest names in the space, H&R Block and TurboTax, each year. The two companies account for billions in revenue and around 42% of electronically-prepared tax returns during the lucrative tax season, Gitnux reports.
The federal government played a role in the creation of these tax prep giants, and not just by making the tax code complicated. In 2003, it launched the Free File program, a public-private partnership between the IRS and tax prep companies to give low-income taxpayers access to free tax prep software.
They may invest time and energy into preparing their tax filing only at the very end to say, ‘Okay, actually, this is going to cost money.’
Anna Massoglia, editorial and investigations manager at OpenSecrets
Since then, the tax prep industry has spent $93 million on lobbying efforts, according to an analysis from OpenSecrets. Twenty years later, the spending has yet to slow down. Intuit set a company record in 2023, spending $3.8 million, while H&R Block added another $3 million.
“Much of that is targeted on fighting the IRS development of a competitor to the tax prep industry that would allow people to file for free,” Massoglia said.
The Direct File pilot program, which cuts out the private sector, is just one reason for the rift between tax prep companies and the federal government.
A 2019 ProPublica investigation accused Intuit’s TurboTax of using lobbying and “dark pattern” customer tricks to fight off the government’s attempts to make filing taxes free and easy. The investigation reports Intuit used code to make the free version of the government’s program harder to find while it promoted its own “Free Edition,” which often pushed customers into the paid product.
“In many cases, taxpayers may not know what they’re getting into from the start,” Massoglia said. “They may invest time and energy into preparing their tax filing only at the very end to say, ‘Okay, actually, this is going to cost money.’”
Attorneys general from all 50 states sued over the issue and reached a $141 million settlement with TurboTax. Then, the Federal Trade Commission ruled the company engaged in deceptive advertising practices and restricted how it advertises free products moving forward.
This year, the FTC levied similar allegations against TurboTax competitor H&R Block. The regulator said the company deceptively advertises free products and unfairly deletes customer data when users attempt to downgrade to cheaper options.
H&R Block told Straight Arrow News the company could not publicly share how many customers file for free with their software. Meanwhile, TurboTax claimed more than 11 million customers file 100% free each year. But that is advertising the company’s “Free Edition,” not the federal government’s existing “Free File.”
Intuit stopped offering the Free File program in 2021 after nearly two decades, declaring that the program was limiting and that exiting it allowed the company to focus more on its own offerings.
“We’re seeing the tax prep industry investing into making their services more enhanced,” Massoglia said. “Intuit recently launched an integration with Credit Karma. And so we’re seeing them make their services more appealing to taxpayers, trying to make them easier and have more available, in addition to spending to fight against that government program.”
The tax struggle is real. Here’s where it’s no struggle at all.
Massoglia said U.S. tax code complexity is at the heart of why companies like TurboTax exist in the first place.
“The commercial tax prep industry has really developed because people struggle to file their taxes because there really isn’t an easier way,” she said.
“So many different types of income are taxed differently,” said Alex Muresianu, senior policy analyst with the Tax Foundation. “Thinking big here, how do we simplify the tax code? It would be something that looks more like Estonia.”
Ninety-seven percent of people filed taxes electronically. And 92% found the process really easy.
Erle Kõomets, director of Tax and Customs Policy Department at the Estonian Ministry of Finance
Estonia has a flat tax of 20% on individual income. Every Estonian taxpayer has an account with the Ministry of Finance and when tax season comes around, residents can log in and their tax information is already filled out.
“You already see what is the salary that you have earned during the year and how much your employer has withheld,” said Erle Kõomets, director of the Tax and Customs Policy Department with the Estonian Ministry of Finance. “And the system automatically already applies allowances if you’re entitled to them.”
“The system calculates everything for you,” Kõomets continued. “So you don’t need to do really anything yourself except input a few numbers that the government does not have.”
Some consider a flat tax rate to be regressive, meaning it takes a larger percentage of income from lower-income people. Estonia’s flat tax was introduced 30 years ago after the country declared independence from the Soviet Union. At the time, Kõomets said there wasn’t much wealth disparity. She said she wouldn’t be surprised if the nation moved toward a more progressive tax system in the future.
Tax reform efforts in the U.S.
When it comes to making the tax code in the U.S. more palatable, it’s been a long time since there have been significant changes. The Tax Policy Center said the last time there was comprehensive tax reform was in 1986. That’s when President Ronald Reagan signed the Tax Reform Act, which dropped the top income tax rate while raising the lowest rate by four points.
Don’t tax you, don’t tax me, tax that man behind the tree.
Sen. Russell Long, D-La.
There was also former Godfather’s Pizza executive Herman Cain’s 9-9-9 plan during his run for the Republican presidential nomination in 2012. Cain’s proposal would have replaced the current tax system with a 9% personal income tax, 9% federal sales tax and 9% corporate tax.
But politicians have an uphill battle adjusting the tax code. As the late Sen. Russell Long, D-La., famously said, “Don’t tax you, don’t tax me, tax that man behind the tree.”
“Which is to say that we promise to not touch your provisions, the provisions that you benefit from” Muresianu explained. “The other special benefits that other people benefit from, we’ll get rid of those.”
Tax returns must be filed by April 15 this year without an extension. As tax season comes to a close, the IRS says 43 million people, or roughly 29% of tax returns, are received in the final three weeks before tax day.
Jim Jordan to investigate DOJ plea deal for Trump tax return leaker
Did the former IRS contractor who leaked thousands of tax returns, including former President Donald Trump’s, get a sweetheart plea deal? That’s what House Judiciary Committee Chairman Jim Jordan, R-Ohio, claims, and he’s looking into how the Justice Department decided to charge Charles Littlejohn with one count of disclosing tax return information without authorization.
Between August 2019 and August 2020, Littlejohn stole the tax returns of more than 7,600 people and leaked them to The New York Times and Propublica, which used them to collectively publish more than 50 articles.
The returns belonged to some of America’s wealthiest individuals, including then President Trump, Jeff Bezos, Elon Musk and Sen. Rick Scott, R-Fla.
“The Department’s decision to pursue just one charge for ‘thousands’ of separate criminal acts is highly concerning, and we worry that the Department’s decision may be politically motivated,” Jordan wrote in a letter to Acting Assistant Attorney General Nicole Argentieri.
Jordan is now requesting all documents and communications related to the charging decision. The request applies to both internal communications at the Justice Department and those between the department and IRS employees.
“The scope and scale of Defendant’s unlawful disclosures appear to be unparalleled in the IRS’s history,” the government said in its sentencing memorandum for Littlejohn. “There simply is no precedent for a case involving the disclosure of tax return and return information associated with ‘over a thousand’ individuals and entities. . . . the human impact of Defendant’s crimes is enormous.”
“The fact that he is facing one felony count, I have no words for,” the district judge said at the sentencing hearing, according to Jordan’s letter.
After the sentencing, the department put out a statement that appeared to indicate attorneys believed it was a just sentence.
“This sentence should serve as a warning to anyone who is considering emulating Mr. Littlejohn’s actions,” said Acting Inspector General Heather Hill of the Treasury Inspector General for Tax Administration (TIGTA). “TIGTA relentlessly investigates individuals who illicitly access and disclose taxpayer information, regardless of their personal motivation.”
Jordan said his investigation into this plea deal is in an effort to understand what he calls, “the department’s unusual and questionable leniency towards Mr. Littlejohn.”
Jordan wants the information by 5 p.m. on Thursday, Feb. 22.
Former IRS contractor who leaked Trump’s tax returns sentenced to 5 years
The former IRS contractor responsible for leaking former President Donald Trump’s tax information to news outlets has been sentenced to five years in prison. Thirty-eight-year-old Charles Edward Littlejohn received the maximum sentence on Monday, Jan. 29, handed down by U.S. District Judge Ana Reyes.
“What you did in targeting the sitting president of the United States was an attack on our constitutional democracy,” Reyes said.
Littlejohn pleaded guilty in October as prosecutors said he leaked tax data to The New York Times and ProPublica between 2018 and 2020. Littlejohn not only leaked Trump’s tax returns, but also the returns of billionaires Jeff Bezos and Elon Musk.
Prosecutors called the leaks “unparalleled in the IRS’s history” and argued that Littlejohn applied to be an IRS contractor to get Trump’s tax returns and figured out how to search for records without sounding alarms. Prosecuters added that he “weaponized his access to unmasked taxpayer data to further his own personal, political agenda, believing that he was above the law.”
During the sentencing hearing, Littlejohn apologized for his actions.
“I acted out of a sincere, if misguided, belief I was serving the public interest,” Littlejohn said.
Littlejohn was also fined $5,000 and will be under three years of supervised release following his prison sentence. Judge Reyes said the crime was so extraordinary that the punishment must “deter others who might feel an obligation to break the law.”
3 US soldiers killed in Jordan drone strike identified: The Morning Rundown, Jan. 30, 2024
The Defense Department identifies the three U.S. soldiers killed in a drone strike at a base in Jordan as officials investigate how the attack happened. And Elon Musk says his Neuralink startup has successfully implanted a computer chip into a human’s brain for the first time. These stories and more highlight The Morning Rundown for Tuesday, Jan. 30, 2024.
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3 U.S. soldiers killed in Jordan drone strike identified
The identities of the three U.S. soldiers who were killed in an attack on a military base in Jordan on Sunday, Jan. 28, have been released as the investigation is revealing new details. The Defense Department said 46-year-old Sgt. William Jerome Rivers, 23-year-old Spc. Breonna Moffett and 24-year-old Spc. Kennedy Sanders, all from Georgia, were killed by an unmanned aerial drone attack on the troops’ sleeping quarters in the early morning hours.
"We are deeply saddened by the loss of our three Army Soldiers who made the ultimate sacrifice while serving their country in Jordan. Our prayers are with these loyal and courageous Soldiers’ families, friends, and the entire 718th Engineer Company – we honor their selfless…
The Biden administration blamed an Iranian-backed militia group for the attack, the first in which American soldiers have been killed since the start of the Israel-Hamas war. Iran has denied it was behind the strike. White House National Security spokesperson John Kirby echoed President Joe Biden’s comments a day earlier. Kriby said the U.S. would respond.
“We do not seek another war. We do not seek to escalate,” Kirby said. “But we will absolutely do what is required to protect ourselves, to continue that mission, and to respond appropriately to these attacks.”
All three soldiers who died were part of Operation Inherent Resolve, tasked with defeating ISIS in the region. The strike is believed to be the deadliest attack on U.S. service members since 13 Americans were killed in Afghanistan in 2021.
Six-week pause in war proposed for release of more hostages
Talks of another pause in the war between Israel and Hamas are in the early stages. Still, officials said the framework to deal is expected to be presented to Hamas that would see a six-week stoppage in fighting and the release of more hostages in exchange for Palestinian prisoners.
I met with @MBA_AlThani_ in Washington, DC, to discuss efforts to secure the release of all the remaining hostages held by Hamas. We are thankful for Qatar’s partnership and indispensable role in mediating. pic.twitter.com/ngdqwM5miY
The terms were drafted by representatives of the United States, Israel, Qatar, and Egypt on Sunday, Jan. 28, in Paris. CIA Director William Burns was among those working on the plan that Qatar would present to Hamas officials, and they would then send back a response.
“We are hoping actually, to relay this proposal to Hamas and to get them to a place where they engage positively and constructively in the process.” Qatari Prime Minister Mohammed bin Abdulrahman bin Jassim al Thani said during an Atlantic Council webinar.
Officials told the New York Times the early framework called for Hamas to release elderly hostages as well as any remaining women and children during the pause in fighting. When asked on Monday, Jan. 29, about the plan, Secretary of State Antony Blinken replied, “The less said, the better.” He added the proposal on the table is a “compelling one” and “there is some real hope going forward.”
IRS contractor sentenced to 5 years for leaking Trump’s tax records
I acted out of a sincere, if misguided, belief I was serving the public interest.
Charles Edward Littlejohn
Prosecutors said Littlejohn leaked tax data to the New York Times and ProPublica between 2018 and 2020; prosecutors called the leaks “unparalleled in the IRS’s history” and argued that Littlejohn applied to be an IRS contractor to get Trump’s tax returns and figured out how to search for records without sounding alarms.
“I acted out of a sincere, if misguided, belief I was serving the public interest,” Littlejohn said.
Littlejohn was also fined $5,000 and will be under three years of supervised release following his prison sentence. Judge Reyes said the crime was so extraordinary that the punishment must “deter others who might feel an obligation to break the law.”
Cyberattack targets government systems where Trump faces election interference charges
A cyberattack targeted Fulton County, Georgia, government systems, where former President Donald Trump faces election interference charges. According to a Fulton County official, the attack, which is being investigated by law enforcement, targeted devices that use county servers, including those used by District Attorney Fani Willis’ Office.
A county commissioner said there is no indication that any sensitive information about employees or citizens has been leaked, and there is no timeline for when the threat will end and when systems will be restored.
The attack comes as Willis faces filing deadlines in the election interference case against Trump. This week, Willis will be heard in front of a judge as to why she should not be disqualified from prosecuting the case following allegations that she had a relationship with the special prosecutor she hired to work on the Trump case.
Elon Musk says Neuralink has implanted computer chip in first human
Musk said initial results showed “promising neuron spike detection” but gave no further details on the procedure or the patient. In May of 2023, Neuralink announced it received approval from the FDA to conduct its first-in-human clinical study.
🧠 Elon Musk announced the first successful Neuralink brain chip implant in a human. Think about telling someone 10 years ago that by 2024, we'd be on the brink of unlocking telepathy…
In a follow-up post, Musk said the first Neuralink product called “telepathy” will enable the patient to use a phone or computer to control any device just by thinking. Musk said initial users will be those who have lost the use of their limbs.
Pilot believes he may have found Amelia Earhart’s long-lost plane
Tony Romeo, a former Air Force intelligence officer, said he and his crew at Deep Sea Vision may have discovered the long-lost wreckage of Earhart’s twin-engine aircraft after scanning more than 5,200 square miles of ocean floor.
The $11 million expedition used an underwater drone to capture a sonar image resembling the shape of an airplane near Howland Island, halfway between Australia and Hawaii. Earhart was set to land on the island for refueling during her 1937 flight, in which she had hoped to be the first pilot to circumnavigate the globe.
Because the images are blurry, Romeo said his team will return to the site later this year to take clearer photos to confirm if it is indeed the long-lost plane.
No Labels files DOJ complaint alleging conspiracy to keep them off ballot
No Labels — the organization working to get on the ballot in all 50 states for the 2024 presidential election — has filed a formal complaint with the Department of Justice alleging that there may be a racketeering conspiracy afoot to stop it. No Labels leaders are accusing organizations including Third Way and The Lincoln Project of using intimidation, harassment and fear, and are asking the DOJ to open a formal investigation.
“So the conspiracy we have alleged to the Department of Justice today is no less than an attempt to knock the legs out from under American democracy,” retired Sen. Joseph Lieberman, D-Conn., said.
The letter to the DOJ quotes a recording obtained by the news organization Semafor, in which Third Way co-founder Matt Bennett and others discuss a desire to get No Labels donors to stop donating. Another person in the recording wanted to file a complaint with the IRS hoping to inflict “a huge hit to [No Labels’] entire operation.” No Labels is a non-profit organization.
“I met with a longtime friend of mine who was there to deliver a message from The Lincoln Project that the forces aligned against us would make sure that if I continued with my work, I would never work in politics again, and that we would get it with both barrels,” No Labels co-founder Holly Page said.
No Labels also shared these quotes in video form as evidence of harassment:
“Anybody who participates in this No Labels malarkey should have their lives ruined,” Jonathan Last, from the Bulwark podcast, said. “They should lose whatever jobs they might have.”
“They need to be burned to the f—king ground,” Rick Wilson, of The Lincoln Project, said.
No Labels listed multiple sections of U.S. criminal code it says may have been broken, including:
18 U.S. Code § 1951 -Interference with commerce by threats or violence
18 U.S. Code § 241 -Conspiracy against rights
18 U.S. Code § 601 -Deprivation of employment or other benefit for political contribution
Voting Rights Act
National Voter Registration Act
“The alleged conspiracy to stop No Labels is a brazen voter suppression effort,” said Dr. Benjamin Chavis, No Labels national co-chair.
The Justice Department confirmed receipt of the letter to SAN but declined further comment, which is customary for matters that may or may not lead to formal investigations. No Labels said the DOJ said it would be taking the letter under advisement.
No Labels is considering putting forward a unity ticket of one Democrat and one Republican to run against President Joe Biden and the 2024 Republican nominee.
Third Way responded to the allegations in a statement that said, “The No Labels allegations are baseless and frivolous. This letter is an all-too-predictable attempt to distract from the fact that No Labels has no chance of winning. Instead, they have confirmed our warning that they are actually planning to use this doomed third-party effort to force a contingent election. We will continue to make the case publicly and privately that No Labels risks putting Donald Trump back in power if they go forward.”
SAN reached out to The Lincoln Project and has not heard back as of press time.
Missing panel from Alaska Airlines flight found in man’s backyard: The Morning Rundown, Jan. 8, 2024
The missing piece of an Alaska Airlines plane that blew off in midflight is found in a backyard. And the first U.S. moon landing mission in decades lifts off. These stories and more highlight The Morning Rundown for Monday, Jan. 8, 2024.
Missing panel from Alaska Airlines flight found
As the National Transportation Safety Board continues investigating what caused a panel to detach from an Alaska Airlines plane midflight over the weekend, officials said they found that missing piece. The panel, called a door plug, was recovered in a teacher’s backyard in Portland, Oregon.
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The incident occurred Friday evening, Jan. 5, on an Alaska Airlines flight from Portland to Ontario, California, moments after it took off with 171 passengers and six crew members on board. No one was sitting in the window seat next to the missing panel, but passengers said they heard an extremely loud pop when the piece blew out 16,000 feet in the air.
The plane landed safely back in Portland. The FAA said it would examine how the door plug was fastened before it detached. The FAA grounded some “Boeing 737 Max 9” airplanes, which was the model of the Alaska Airlines flight. The grounding impacted more than 170 planes. The planes will remain grounded until the FAA is satisfied with its safety check.
Congressional leaders reach overarching deal to potentially avert shutdown
With a government shutdown on the horizon, Congressional leaders say they have found a middle ground to move forward with drafting individual spending bills. On Sunday, Jan. 7, Senate and House leaders announced an overarching agreement on government funding totaling nearly $1.66 trillion. A number in line with 2023’s agreement between President Biden and then-speaker Kevin McCarthy, R-Calif. An agreement that, in part, led to McCarthy’s ousting.
It is unclear whether this year’s agreement will get the support needed to pass spending bills to avert a partial shutdown in less than two weeks. The deal allows for an increase in Pentagon spending to $886 billion and $772.7 billion in non-defense funding.
We have made clear to Speaker Mike Johnson that Democrats will not support including poison pill policy changes in any of the twelve appropriations bills put before the Congress. pic.twitter.com/vDVWQYNqVu
Now, lawmakers will work on individual spending bills, work that has stalled in the past as Republicans and Democrats couldn’t agree on a middle ground. In a letter to Republicans, Speaker of the House Mike Johnson, R-La., said there were victories for the GOP in the overarching agreement.
The deal includes a $10 billion cut to IRS funding and a $6 billion claw-back in unspent COVID-19 relief funding. Congress faces a first deadline of Jan. 19 to pass four individual spending bills to avoid a shutdown and a second deadline of Feb. 2 to pass eight remaining appropriation bills.
White House kept in dark about Defense Secretary Lloyd Austin’s medical condition
But the lack of transparency concerns Congress members, as even the president was kept in the dark about what happened. Though the Department of Defense released a statement on Friday, Jan. 5, details of what has been going on were still unclear. The statement read that Austin was taken to the ICU “due to his medical needs, but then remained in that location in part due to hospital space considerations and privacy.”
According to reports, the White House was kept in the dark for three days following Lloyd’s hospitalization on Jan. 1. News that raised concerns as the U.S. juggles multiple conflicts, one of which is risking to spread in the Middle East. On Saturday, Jan. 6, Austin released a statement.
“I recognize I could have done a better job ensuring the public was appropriately informed,” Austin said. “I commit to doing better.”
A U.S. official reported that President Biden and Austin spoke via telephone on Saturday, Jan. 5, and the president was happy to hear Austin was recovering. Another official added that Biden has complete confidence in Austin’s ability to continue to uphold his oath.
Poll: Nearly half of Americans believe situation at border is a crisis
Nearly half of Americans surveyed in a new poll said the situation at the U.S.-Mexico border is a crisis, and the percentage who believe the Biden administration should be tougher on immigrants trying to cross the border is the highest yet.
The results of the CBS News poll were released Sunday, Jan. 7, and show that 45% of Americans believe the migrant situation is a crisis, up from 38% in May. Meanwhile, 63% said the Biden administration should be tougher on immigrants attempting to cross the border, 16% said the administration should be easier on migrants, and 21% believe the president is handling the situation just right.
In May, the poll found that Americans were evenly divided about southern border states sending migrants to northern cities. But now, it is facing growing disapproval, with 57% disapproving. CBS said more than 2,100 Americans were interviewed for this survey.
First U.S. Moon landing mission in decades launches into space
It was also the first flight for Vulcan, which has been under development for a decade by United Launch Alliance, a joint venture of Boeing and Lockheed Martin. The lunar lander called Peregrine was developed by the Pittsburgh-based company Astrobotic Technology.
The lander was carrying multiple scientific deliveries on board, including five experiments from NASA. If successful, Peregrine would be the first American spacecraft to land on the moon since the final Apollo mission in 1972, and if all goes right, it is set to touch down on the Moon on Feb. 23.
‘Oppenheimer,’ ‘Succession’ win big at Golden Globes
After 2023 saw two Hollywood strikes, it was time to celebrate the year in film and television at the 81st annual Golden Globes Sunday night, Jan. 7. It was a big night for the movie “Oppenheimer,” not only did Christopher Nolan win for best director and Cillian Murphy win for best actor, but the film itself took home the Golden Globe for best picture for a drama. The movie “Poor Things” won for best comedy or musical.
As for the top-grossing film of the year, “Barbie,” it was the winner of the first-ever Golden Globe for cinematic or box office achievement, an award recognizing blockbuster movies.
Meanwhile, over on the TV side, it proved to be a successful night for “Succession,” which won four categories, including best drama series. Meanwhile, “The Bear” took home the award for best comedy series.
EV tax credits set to become available for consumers at time of purchase
The high cost of electric vehicles (EVs) has been a “leading deterrent” for many consumers in the United States who are considering making the switch to sustainable transportation. A poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago found that six in 10 American adults said the high cost is a major reason they would not purchase an EV.
The Biden administration’s Inflation Reduction Act includes measures to address this issue, such as federal tax credits aimed at encouraging more Americans to embrace EVs. However, it became evident that consumers do not want to wait months to experience the reduced costs associated with these tax credits. Chris Harto, senior policy analyst for Consumer Reports, referred to the system as having created “all kinds of chaos for consumers.”
“The current federal electric vehicle tax scheme is a pain,” said John Helveston, an assistant professor of engineering management and systems engineering at George Washington University. “First of all, you have to have money. You have to be wealthy enough to buy the whole car and then wait for your tax-break kickback in April. But if you’re not in that class of buyers, you often need the money when you buy the car, or you’re not going to buy it.”
Consequently, the federal government is announcing changes to this process, allowing EV buyers to immediately benefit from savings rather than waiting for their tax returns. Starting in 2024, consumers will have the opportunity to reduce the upfront cost of a new eligible EV by up to $7,500 and a qualifying used EV by up to $4,000 while still at the dealership.
“[This change] will make a tremendous difference,” said Elizabeth Krear, the vice president of the electric vehicle practice at JD Power. “That’s $7,500 right there at the time of the transaction — versus having to finance at a higher price, which increases the monthly payments, and then waiting for that tax rebate down the line sometime in April.”
Officials within the U.S. Treasury Department have emphasized that this shift to immediate savings will benefit both consumers and car dealerships. The Biden administration has already initiated outreach efforts to car dealers, providing them with details on how to register with a new federal government website that enables them to be reimbursed for these tax credits within 72 hours of selling the vehicle.
“For the first time, the Inflation Reduction Act allows consumers to reduce the up-front cost of a clean vehicle, expanding consumer choices and helping car dealers expand their businesses,” said Laurel Blatchford, the Treasury Department’s chief implementation officer for the Inflation Reduction Act. “The IRS has focused on streamlining this process for car dealers as part of its commitment to improving service and helping taxpayers claim the credits they are eligible for.”
Research conducted by George Washington University revealed that most of U.S. car buyers surveyed prefer receiving money back upfront rather than waiting until they file their taxes. By offering immediate savings, the federal government aims to accelerate the adoption of electric vehicles across the nation.
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The Internal Revenue Service is cracking down on people reselling concert tickets for profit. A new IRS regulation will require ticket-reselling platforms like SeatGeek and StubHub to file information on any users who resold tickets for $600 or more this year.
The new rule comes as a record number of event tickets were sold in 2023. Fans shelled out thousands of dollars for tickets to see their favorite stars.
Those who resold tickets to events like the Taylor Swift Eras Tour, Beyonce’s Renaissance World Tour, or to see soccer star Lionel Messi will be subject to the new regulation.
The average Taylor Swift concert ticket sold for $1,600 on SeatGeek. If a person sold just one ticket at that price, they should expect to receive a 1099-K tax form this year.
Before 2023, ticket-reselling platforms only had to report sellers with revenues of at least $20,000 over 200 or more transactions.
Under the new IRS regulation, $600 is the threshold with no minimum number of transactions. Because of the drastic difference, the IRS expects to collect taxes from quadruple the number of sellers from years past.
This new IRS regulation is part of President Joe Biden’s American Rescue Plan Act of 2021. The Biden administration advocated for the tax rule, calling it a crackdown on the wealthy. However, Republicans argue the lower threshold will impact middle class Americans.
There are bills in both the House and the Senate that would increase the $600 threshold, but those efforts have stalled so far.