Tag: taxes

House Democrats File Marijuana Legalization And Expungements Bill

A top House Democrat has reintroduced a bill to federally legalize, tax and regulate marijuana, with provisions to expunge prior cannabis convictions.

Rep. Jerrold Nadler (D-NY), ranking member of the House Judiciary Committee, refiled the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act on Wednesday. There are 33 initial cosponsors—all Democrats.

The comprehensive legalization legislation has passed the House twice in recent sessions—but this marks the first time it’s being introduced with Republicans in control of the chamber, raising serious questions about whether it will move. The Judiciary Committee, which is the primary panel of jurisdiction, is chaired by anti-cannabis Rep. Jim Jordan (R-OH).

Even the prospects of a modest marijuana banking bill that’s set for committee action in the Senate next week are uncertain in the House under the GOP majority. That said, a GOP-led House panel did advance legislation on Wednesday to prevent the denial of federal employment or security clearances based on a candidate’s past cannabis use.

In any case, advocates have long touted the MORE Act as an example of the type of wide-ranging cannabis reform legislation that would not only end prohibition but take steps to right the wrongs of prohibition and promote social equity.

Keep reading

How the Federal Budget Deficit Doubled in a Single Year

It’s not totally unprecedented to see the federal budget deficit double from one year to the next, as it seems to have done this year.

But those occasions, at least in the past 50 years, have always corresponded with bad stuff happening to the national economy. Deficits surged in the late 1970s and early 1980s thanks to high inflation and a series of recessions. The budget deficit doubled between 2002 and 2003 thanks to a recession and as the War on Terror kicked off. And it skyrocketed again during the crises that bookended the 2010s: the mortgage crisis and the COVID-19 pandemic.

This year will likely be added to that list. The Congressional Budget Office last week projected that the federal government will post a deficit of $2 trillion when the current fiscal year ends on September 30.

At first blush, that might not appear to double last year’s budget deficit of about $1.4 trillion, but keep in mind that last year’s total included roughly $400 billion for President Joe Biden’s student loan forgiveness plan—funds that were never spent because the Supreme Court struck down the proposal, as the CBO notes.

Compared to those other historical examples, however, this year seems like an outlier. Unemployment is low, the economy has been growing steadily, and inflation has significantly abated. America does not seem to be in a crisis at the moment, but the government’s balance sheet certainly is.

And it is that way, in large part, because of the government’s own programs—as opposed to, say, an external event like a pandemic or a mortgage crisis. The drivers of this year’s rising deficit are four-fold, and three of them are the result of decades of poor policymaking: rising interest costs on the $33 trillion national debt, higher Social Security outlays, and more Medicare spending. As Axios points out, those three categories added more than $390 billion to the deficit relative to last year—a tremendous jump in a single year.

The fourth category is falling federal income tax revenue, which is responsible for about $171 billion of the added deficit this year versus last. That’s likely a blip and not a long-term problem—federal tax revenue was unexpectedly high a year ago, and bigger swings in annual revenue tallies seem to be becoming more common, as The Wall Street Journal explained in May.

That’s not the case for the other three categories driving this year’s deficit, all of which are going to keep getting worse for the foreseeable future.

Keep reading

Mold, raw sewage, brown tap water found in US barracks

Government investigators found mold, gas leaks, brown tap water, and broken sewage pipes in U.S. military barracks despite record-high Pentagon spending, according to a major report released by the Government Accountability Office on Tuesday.

“We found that living conditions in some military barracks may pose potentially serious risks to the physical and mental health of service members, as well as their safety,” the GAO reported, noting that the conditions also impact troop readiness.

The independent investigation paints a shocking picture of the conditions at U.S. military barracks, which all enlisted service members must live in at the start of their military careers. As GAO notes, the problem is far from new. The watchdog issued several reports in the early 2000s that found widespread safety issues in barracks across the world, and conditions appear to have gotten worse in the intervening years.

The scathing report linked the poor conditions in barracks to the military’s ongoing issues with recruitment. “Thousands of service members come through this base for training every year and live in these barracks,” an anonymous enlisted officer told the GAO. “They go home and tell their friends and family not to join the military because of living conditions.”

GAO wrote that, as of last year, there was a $137 billion backlog of deferred maintenance costs for Pentagon facilities. Barracks and other “lower-priority facilities” are “chronically neglected and experience increased deterioration,” the report notes. The impressive sum represents a fraction of current military spending, which is set to reach $886 billion next year.

Investigators, who visited 10 barracks and held focus groups with service members, recommended 31 policy changes to increase oversight of the facilities and improve living conditions for service members. The Pentagon endorsed most of the suggestions and noted several cases in which efforts were already underway to address them.

Keep reading

He told on ‘badge bending’ and was fired. Now, former Vallejo cop will get nearly $1 million

A former police captain who alleges in a lawsuit that he was fired for whistleblowing on his colleagues and exposing corruption within the Vallejo Police Department will receive nearly $1 million in a settlement with the city.

John Whitney and his attorney, Jayme Walker, agreed to the settlement last week, in which the city will be required to pay Whitney $900,000 as well as all costs, liens and attorney fees.

“I feel vindicated by the settlement agreement because of the amount,” Whitney told The Times in an interview Monday. “You don’t settle for nearly $1 million if you did everything correct.”

Whitney alleges in a lawsuit filed against the city and his former employers in 2020 that he was fired after he told Vallejo City Manager Greg Nyhoff, Mayor Bob Sampayan and then-City Atty. Claudia Quintana that members of the Police Department were bending the corners of their badges to commemorate every time an officer killed a civilian.

Keep reading

IRS Hiring Another 3,700 Tax Enforcers, Watchdog Warns Those Earning Under $400,000 Could Be Targeted

IRS hiring 3,700+ tax enforcers to audit higher earners but a watchdog worries about audits for those under $400,000 due to unclear “high-income” definition.

The Internal Revenue Service (IRS) is looking to hire over 3,700 additional tax enforcers as it ramps up its audit crackdown of higher-earning taxpayers, though a watchdog warns that Americans making less than $400,000 could get caught in the dragnet because the agency doesn’t have a clear definition of “high-income.”

The IRS said on Sept. 15 that it had opened over 3,700 positions nationwide to assist  with “expanded enforcement work” that focuses on complex partnerships, large corporations, and high-income earners.

The compliance positions will be open in more than 250 locations across the United States and are part of a “sweeping, historic” tax enforcement crackdown that leverages cutting-edge technology, including artificial intelligence, to catch tax evaders more effectively.

The hiring will be for higher-graded revenue agents, with the IRS calling on people in the financial services industry—such as tax accountants, forensic accountants, auditors, and controllers—to apply.

The IRS is flush with cash from a recent congressionally-mandated infusion of $60 billion in new funding, with some of the money already having bolstered the tax agency’s ranks substantially. Recent reports indicate that hiring is up around 13 percent over the past year, allowing the IRS to hit a decade-high of nearly 90,000 staffers.

But while the recent batch of new hires was focused on taxpayer service positions, the newly announced hiring thrust is looking to give the IRS more enforcement muscle.

“This next wave of hiring will help the IRS add key talent like tax accountants to help reverse a decade-long decline of audits for the wealthy as well as complex partnerships and corporations,” IRS Commissioner Danny Werfel said in a statement.

“These new employees will be focused on higher-income and complex tax areas like partnerships, not average taxpayers making less than $400,000,” Mr. Werfel added.

But Mr. Werfel’s pledge not to target Americans earning under $400,000 rings hollow, given a recent watchdog report that called into question the ability of the IRS to make good on this pledge because it either lacks a clear definition of “high-income” or uses outdated tax examination activity codes that put the threshold for high earners at $200,000.

Keep reading

US authorities ask locals for help in finding missing F-35 jet

A stealth-capable US fighter jet has vanished during flight, prompting an unusual call to the public to help locate the missing multimillion-dollar plane.

After what US authorities labelled as a “mishap”, the pilot flying that F-35 in the southeastern state of South Carolina on Sunday ejected. He survived and was taken to hospital where he was in stable condition.

The pilot’s name has not been released.

The military, however, was left with an expensive problem: it couldn’t find the jet, leading Joint Base Charleston to ask for help from residents.

“If you have any information that may help our recovery teams locate the F-35, please call the Base Defense Operations Center,” a post from the base read on X, formerly known as Twitter.

Base authorities said they were searching in coordination with federal aviation regulators around two lakes north of Charleston city.

A South Carolina Law Enforcement Division helicopter also joined the search after weather improved in the area.

The pilot of a second F-35 returned safely to Joint Base Charleston.

The planes and pilots were with the Marine Fighter Attack Training Squadron 501 based in Beaufort, not far from South Carolina’s Atlantic coast.

The planes, manufactured by Lockheed Martin, cost about $80m each.

Keep reading

Los Angeles Spends $44,000 Per ‘Temporary’ Tent For Homeless Village

Los Angeles is reportedly spending $44,000 for each individual tent in a temporary tent village for homeless people in East Hollywood, The Messenger reports.

All told, it cost about $4 million to put up fencing, bathrooms, and staffing facilities for the village. Catering services and 24-7 staffing cost an additional $3 million per year, the Los Angeles Times reported.

Despite the high costs, the site is only temporary. It’s located on a parking lot that will eventually be turned into public housing. But because it will take years for construction to commence on that project, the city decided to fill the space with tents in the meantime.

San Francisco-based nonprofit Urban Alchemy maintains the encampment. Launched in 2018 with a small grant, the group hires mostly former prisoners because they have the “ability to read people in unpredictable situations.”

According to several lawsuits, however, some of those employees have engaged in abusive behavior.

After expanding to Portland and Austin, the group brought in $51 million in 2021.

Keep reading

Homeless Program in Washington State Has Burned Through $143 Million to House Less Than 1,000 People

Washington State has been trying to deal with their homeless problem, but they haven’t had much success.

A program designed to close down tent communities and get homeless people into housing has already spent $143 million dollars to house less than a thousand people. That’s a horrible ratio.

And now they want more cash, because they think this program has been so effective.

FOX News reports:

Blue state’s $143 million homeless program got less than a thousand people housed. Now governor wants more

An initiative to remove homeless camps from roadways needs more money to continue next year, according to Washington Gov. Jay Inslee, after burning through $143 million in a little over a year.

“You can’t do this with zero dollars,” Inslee, a Democrat, told KOMO News. “We’ll need the legislature in January to step up to increase funding so we can continue the progress we’re making.”

Inslee’s statewide Rights-of-Way Safety Initiative began in June 2022 with the goal of removing homeless camps from state property near roads and offering housing to the people living in the camps.

On Friday, Inslee toured a tiny home village in Olympia funded by the initiative that will soon provide shelter to 50 people who previously lived in an encampment along I-5, KOMO reported. The governor said during the tour that the safety initiative is out of money and, come January, camps will remain on state lands if the legislature does not allocate more funds.

“We’re very proud of the work state agencies have done in our right of way initiative working alongside local officials and service providers,” a spokesperson for the governor told Fox News in an email. “We will take as much funding as we can get to continue this work.”

Keep reading

Chicago’s mayor Brandon Johnson wants to push ‘mansion tax’ on homes that sell for more than $1 million – and members of his team want to tax households earning $100,000 or more in report named ‘First We Get the Money’

Chicago‘s mayor Brandon Johnson is pushing a ‘mansion tax’ on sales of homes of more than $1 million, as his administration continues to push higher tax on households earning over $100,000.

The newly elected mayor, who took over from his disastrous predecessor Lori Lightfoot in May of this year, wants to push a hike in taxes in order to fight homelessness in the city. 

Allies of Mayor Johnson, 47, have also announced plans to push a $12-billion plan for the city titled ‘First We Get the Money’.

The plan, seemingly named after a quote from the 1983 film Scarface, aims to build a ‘more just’ Chicago by slashing funding for the police and implementing new taxes in the city. 

Johnson believes people that own properties worth $1 million in the third-largest city in the U.S. are ‘rich, and should pay if they sell those homes’. 

The plan, named ‘Bring Chicago Home’ is a compromise from his previous plan that would have seen the transfer-tax rate triple from 0.75 percent to 2.65 percent. 

According to the National Review, Johnson is now proposing a three-tier progressive-transfer rate. 

This means that sales below $1 million would see the tax cut from 0.75 percent to 06. percent, while property owners who sell their homes for between $1 million and $1.5 million would see tax rates rise from 0.75 percent to 2 percent. 

Property sales of $1.5 million and above would see their tax rate quadrupled to three percent of the transfer amount. 

A search of real estate sites by DailyMail.com showed that it was difficult to find substantial sized properties for over a million dollars, with the majority being condos or small townhouses.  

According to Midwest Real Estate Data seen by Chicago Business, there were 2,391 homes sold for $1 million or more in Chicago last year, down 14.5 percent from the previous year. 

Zillow is also currently reporting that the average price of a home in Chicago is $287,709, which is down 1.2 percent over the last year. 

Keep reading

$1bn in aid has been used to support failed ‘war on drugs’ over past decade, says report

Almost $1bn (£800m) of aid has been spent on a global “war on drugs” over the past decade that has fuelled human rights abuses, according to a new report.

Analysing data from the Organisation for Economic Co-operation and Development (OECD), the NGO Harm Reduction International (HRI) found that, between 2012 and 2021, the US and the EU spent $550m and $282m of their aid budgets respectively on programmes that supported drug control policies. The UK has spent $22m since 2012 – more than $10m of that in 2012 – which has been used to support surveillance capabilities in Colombia, Mozambique and the Dominican Republic, and undercover policing in Peru.

Under Joe Biden, the US has hugely increased the amount of aid spent on narcotics control from $31m in 2020 to $309m in 2021. Some of the money has been used by the Drug Enforcement Agency to train police and special units in Vietnam and Honduras, which have been accused of arbitrary arrests and killings.

The report found more aid globally was spent on supporting drugs policies ($323m) in 2021 than on school feeding projects ($286m) or labour rights ($198m). Ninety-two lower-income countries were listed as having received aid for narcotics control, including Afghanistan, which received money to train police after the Taliban takeover in 2021.

“When you think about development, you don’t really think about it being used for those kinds of activities – you think of poverty reduction, working towards development goals on health or education,” said Catherine Cook, sustainable financing lead at HRI, which monitors the impact of drug policies. “This money is actually being used to support punitive measures – so policing, prisons, essentially funding the ‘war on drugs’, even though we know the ‘war on drugs’ and punitive policies have repeatedly failed.”

Keep reading