Key Takeaways
- Shutdown Layoffs Paused
- Shutdown Continues
- Global Public Debt
- Community Finance Staff
- Film Industry
- Democratic Party Strategy
- In the Courts
- Global Cat Day
Shutdown Layoffs Paused
Trump’s Shutdown-Linked Layoffs Paused by California Judge – Ian Kullgren & Isaiah Poritz, Bloomberg ($):
“It’s really ready, fire, aim on most of these programs,” Judge Susan Illston of the US District Court for the Northern District of California said at a hearing in San Francisco on Wednesday. “It’s a human cost that cannot be tolerated.”
She issued a temporary restraining order, effective immediately, requested by a coalition of federal worker unions. Her order would block terminations nationwide that were started last week.
Shutdown Firings Paused by Judge as Vought Vows More to Come – Zoe Tillman, Lauren Dezenski, and Jennifter A. Dlouhy, Bloomberg ($):
The ruling on Wednesday from US District Judge Susan Illston in San Francisco follows layoff notices that have gone out to more than 4,100 federal employees since last week.
The order isn’t a final decision on the merits of the case. It means that more than 30 federal agencies for now cannot send out new layoff notices if they involve programs that affect labor union members who sued.
Democrats Seek Tax Relief for Federal Employees During Shutdown – Zach C. Cohen, Bloomberg ($):
“It’s not their fault,” Sen. Brian Schatz (D-Hawaii), a senior member of the Senate Appropriations Committee, told reporters Tuesday night. Schatz said he wants this relief to be included in any deal to end the government shutdown that started Oct. 1.
Shutdown Continues
Who's winning the blame game over the shutdown? Here's what a new AP-NORC poll shows – Joey Cappelletti & Linley Sanders, Washington Post:
Roughly 6 in 10 Americans say President Donald Trump and Republicans in Congress have “a great deal” or “quite a bit” of responsibility for the shutdown, while 54% say the same about Democrats in Congress, according to the poll from The Associated Press-NORC Center for Public Affairs Research . At least three-quarters of Americans believe each deserves at least a “moderate” share of blame, underscoring that no one is successfully evading responsibility.
Senate Shutdown Talks Emerge. Just Don’t Call Them Negotiations – Jack Fitzpatrick, Bloomberg ($):
The informal conversations serve as a counterweight to the House, where there’s been no bipartisan communication aside from bickering matches in the hallways. These senators hope they can at least keep the pot simmering, in the hopes a breakthrough might eventually emerge.
How US Government Shutdowns Became Routine: QuickTake – Erik Wasson, Bloomberg News ($):
Democrats are demanding that a stopgap bill include an extension of Affordable Care Act premium subsidies and a reversal of Medicaid funding cuts — conditions Republicans have rejected, leaving the two sides deadlocked and the shutdown unresolved. Democrats also want new restrictions on Trump’s ability to refuse to spend money appropriated by Congress.
Global Public Debt
Global Public Debt Set to Top Post-WWII Levels by 2029, IMF Says – Jorgelina do Rosario, Bloomberg ($):
Rising debt-servicing costs are adding pressure to government’s budgets, as well as increasing defense spending and aging populations, the Washington-based fund said in its latest Fiscal Monitor, published on Wednesday.
Community Finance Staff
Trump Bid to Fire Community Finance Staff Faces Bipartisan Fight – Evan Weinberger, Bloomberg ($):
The Treasury Department last week told staff at the Community Development Financial Institutions Fund they will be subjected to a reduction-in-force order scheduled to take effect Dec. 13, according to a notice obtained by Bloomberg Law.
Film Industry
Tax Credit or Tariff? How to Rescue American-Made Films – Katie Lobosco, Tax Notes ($):
With support from the film industry, Sen. Adam B. Schiff, D-Calif., and Rep. Laura Friedman, D-Calif., both say they are working on legislation and argue that a tax credit would be more effective than a tariff.
Democratic Party Strategy
House Dems Expect to Run on Trump and Inflation, Not So Much Tax – Doug Sword, Tax Notes ($):
Although polling, such as a Reuters-Ipsos poll, show both parties being blamed for the government shutdown, Democrats claim that public opinion turns more in their favor when projected healthcare insurance hikes because of the upcoming expiration of Affordable Care Act premium tax credits are taken into account.
In the Courts
Tax Court Again Holds IRS Penalties Don’t Require Jury Trials – Tristan Navera, Bloomberg ($). “A partnership contesting a tax penalty on a disallowed $49.7 million conservation easement donation lost its bid to force a jury trial.”
Johnson Amendment Case Continues Despite Shutdown – Trevor Sikes, Tax Notes ($). “Litigation will proceed regarding the IRS’s proposed agreement to lift the enforcement against prohibited political activity by two Texas churches — even during the government shutdown, a judge ruled.”
Fictional Character’s Purpose Defeats Org’s Tax-Exempt Status – Trevor Sikes, Tax Notes ($). “An organization’s tax-exempt status was rightfully denied under section 501(c)(3) because its purpose was primarily profit-driven in its promotion of a character named “Mad Comedian” and for the founder’s benefit, the Tax Court ruled.”
Goldstein Can't Dismiss 2016 Tax Charges As Time-Barred – Jared Foretek, Law360 ($). “A Maryland federal judge denied SCOTUSblog co-founder Tom Goldstein's motion to dismiss four of the 22 federal tax charges brought against him in January, ruling that his defense that the counts stemming from the 2016 tax year should be time-barred will have to be raised at trial.”
NYC Hotel Must Hand Over Tax Credits In Bankruptcy – Anna Scott Farrell, Law360 ($). “The owners of a boutique hotel in Brooklyn and its management company must return pandemic-era refundable tax credits that they received as the hotel filed for Chapter 11 bankruptcy protection, a New York bankruptcy judge ruled, saying they had unfairly pocketed the money at the bankruptcy estate's expense.”
What Day is it?
It’s Global Cat Day! I don’t have a cat, but my grandmother does, so I guess that makes him my Uncle Shaun!!
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