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Democrats Look to Smooth the Way for Biden’s Infrastructure Plan

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Current law reduces the taxes that heirs owe on assets that appreciate over time. Say a person buys $1 million worth of stock, and the value of that stock rises to $10 million before the person dies. If the person sold the stock before death, she would owe taxes on a $9 million gain. But if she died first, and her heirs immediately sold the stocks she gave them, they would not owe any capital gains taxes. Under the new proposal, which exempts $1 million in gains, the heirs would owe taxes on the remaining $8 million gain.

The full exemption reduces federal tax revenues by more than $40 billion a year. It was unclear on Monday how much the Democratic plan would raise in revenues to help Mr. Biden’s spending efforts.

Other Democrats pushed the president to include further tax cuts in his plan.

Representative Tom Suozzi of New York said in an interview on Monday that he would not support changes to the tax code without a full repeal of the so-called SALT cap, which limits the amount of local and state taxes that can be deducted from federal income taxes. That change largely hurt higher-income households in high-tax states like California, Maryland and New York.

House Democrats passed legislation in 2019 that would have temporarily removed the cap, but it stalled in the Senate and attempts to include it in pandemic relief legislation were unsuccessful.

“It has to be elevated as part of the conversation,” Mr. Suozzi said. “There’s a lot of different talk about going big and going bold and making significant changes to the tax code. I want to make SALT part of the conversation.”

Frequently Asked Questions About the New Stimulus Package

The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

Mr. Suozzi is among the Democrats who have requested a meeting with Mr. Biden to discuss repealing the cap, according to a letter obtained by The New York Times.

“No SALT, no dice,” declared another Democrat, Representative Josh Gottheimer of New Jersey.

“There’s plenty of ways, in my opinion, to raise revenue and reinstate SALT,” he said in an interview, adding that he wanted to see the full details of the proposal.



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Suspect arrested in fatal Brooklyn stabbing

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Police have apprehended a suspect in the fatal December stabbing of a Brooklyn man, cops said on Saturday.

The suspect, John Headley, 32, also of Brooklyn, was taken into custody Friday and charged with murder and weapons possession for the Dec. 12 knifing of Ken Baird, 37, police said.

Baird was stabbed multiple times in the chest following a dispute on Crown Street near Utica Avenue in Crown Heights at about 6:40 p.m., police said.

EMS transported Baird to King County Hospital, where he was pronounced dead, cops said.

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Man dies after jumping from Staten Island Ferry

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A 53-year-old man died Saturday after jumping from the Staten Island Ferry into the chilly waters of New York Harbor, police said.

NYPD Harbor launch officers pulled the man out of the water after responding to reports of a jumper near the Whitehall Ferry Terminal in Manhattan at around 2 p.m.

“He jumped off the ferry as it pulled away from the dock,” an NYPD spokesman told The Post. He jumped off the Ferryboat Andrew J. Barberi, police said.

The unidentified victim was removed to Pier 11 and transported to New York-Presbyterian Hospital, where he was pronounced dead shortly after 3:10 p.m.

A newsstand worker said there were “about 50 or so emergency people” at Pier 11 following a valiant effort — which included CPR — to save the man’s life.

Ferry1

An NYPD spokesman says the 53-year-old man “jumped off the ferry as it pulled away from the dock.”

Michael Dalton

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The 53-year-old man was transported to New York-Presbyterian Hospital where he was pronounced dead.

Michael Dalton

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Kemp Lashes M.L.B. as Republicans Defend Georgia’s Voting Law

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Mr. Kemp, who is gearing up to run for re-election in 2022, has striven to re-enter the good graces of Republican voters after becoming a central political target of former President Donald J. Trump because of his refusal to help Mr. Trump overturn the state’s election results last year. A former secretary of state of Georgia who has his own record of decisions that made voting harder for the state’s residents, he is again a key G.O.P. voice leading the charge on the issue.

On Saturday, he repeatedly tried to paint the league’s decision as driven by Stacey Abrams, the voting rights advocate and former Democratic candidate for governor in Georgia who is seen as likely to challenge Mr. Kemp again next year.

Ms. Abrams, one of the most prominent critics of Georgia’s voting law, has pushed back on calls for sports leagues and corporations to boycott the state. She said on Friday that she was “disappointed” baseball officials had pulled the All-Star Game but that she was “proud of their stance on voting rights.”

In defending the law in Georgia, Mr. Kemp singled out two Democratically controlled states, New York and Delaware, and compared their voting regulations with the new law in Georgia. Those states do not offer as many options for early voting as Georgia does, but they have also not passed new laws instituting restrictions on voting.

“In New York, they have 10 days of early voting,” Mr. Kemp said (New York actually has nine). “In Georgia, we have a minimum of 17, with two additional Sundays that are optional in our state. In New York, you have to have an excuse to vote absentee. In Georgia, you can vote absentee for any reason.”



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