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McCarthy, a California Republican, has vowed that his party will not raise the nation’s borrowing cap without simultaneous budget reductions.

Unless Congress can strike a deal, the U.S. will likely default on the nation’s bills starting June 8, triggering major consequences for the economy - though Congress has only eight working days with both chambers in session before Memorial Day, and negotiations appear non-existent. Read more»

The Treasury will now begin suspending the issuance of State and Local Government Series securities — special securities offered to state and local governments that count against the debt ceiling.

U.S. Treasury Secretary Janet Yellen warned that the U.S. could default in as soon as one month if Congress does not act to raise the nation’s borrowing limit — a prediction that prompted President Joe Biden to call a meeting with congressional leaders next week. Read more»

The ACLU says the federal government has gone after individuals for misuse of ARPA funds, including criminally charging more than 1,000. But it says the federal government hasn’t exercised the same kind of scrutiny with state and local governments.

The American Civil Liberties Union is asking the Treasury Department to take a harder line on states and local governments using federal American Rescue Plan Act money to build and expand correctional facilities. Read more»

The appeals court ruled that even a narrow reading of the provision represents an 'unconstitutional condition' on federal funds.

A provision of the American Rescue Plan Act which would have prevented states from using pandemic relief funds to offset new tax cuts cannot be enforced and violates the spending clause of the U.S. Constitution, a unanimous panel of the 11th Circuit ruled on Friday. Read more»

Treasury Secretary Janet Yellen wrote to Congress last week, to inform members the United States would reach its $31.385 trillion borrowing limit Jan. 19. 

The nation reached its debt limit Thursday, beginning the uncertain process known as extraordinary measures, in which the U.S. Treasury Department uses accounting maneuvers to avoid defaulting on the debt. Read more»

A: The country will reach the debt limit on Jan. 19, at which point the Treasury Department will begin using extraordinary measures.

The U.S. government will hit its borrowing limit this week, forcing the new, divided Congress into negotiations over the debt limit much sooner than expected, though a potential date for the nation to default isn’t expected until this summer. Read more»

This year’s Inflation Reduction Act allocates $80 billion to the IRS over the next decade to boost enforcement, operations, taxpayer services and modernization of technical systems.

If you’re trying to evaluate a charity this year, you might have a hard time as the IRS is behind on releasing Form 990s, limiting access to key financial information the public uses to evaluate the nation’s tax-exempt companies. Read more»

Kids at Tucson Unified School District leave school.

The U.S. Treasury warned Gov. Doug Ducey that he cannot use federal funds intended to mitigate the spread of COVID-19 as leverage against school districts that implemented mask mandates. Read more»

Right to the City Los Angeles held a downtown rally April 18, 2011 calling for higher taxes on corporations and the ultrawealthy.

ProPublica’s investigation released Tuesday revealing that the top 25 wealthiest Americans have paid little, and sometimes nothing, in federal income taxes has resulted in demands to rewrite the tax code and to investigate how the confidential data was released. Read more»

Attorney General Mark Brnovich speaking at the 2016 Leadership Series with the Arizona Cardinals hosted by the Arizona Chamber of Commerce & Industry in August 2016.

Attorney General Mark Brnovich is asking a federal judge to strike down a provision of the recent $1.9 trillion COVID-19 relief package that bars states from using the money to “directly or indirectly” offset the cost of tax cuts, arguing that the law is either unconstitutionally vague or an infringement of state sovereignty. Read more»

Mark Brnovich on Fox Business on Nov. 11, 2020.

Republican attorneys general from 21 states, including Arizona's Mark Brnovich, are attacking the $1.9 trillion pandemic relief law as an “unprecedented and unconstitutional infringement” on state sovereignty because it restricts tax cuts by states. Read more»

Gov. Doug Ducey speaking with attendees at a 'Tax Cuts Now' rally on Nov. 6, 2017.

President Biden’s massive pandemic stimulus law pumps a welcome infusion of federal aid into state and local government coffers — but one brief section is raising questions about whether states are barred from cutting their own taxes if they accept the federal help. Read more»

National Congress of American Indians President Fawn Sharp and CEO Kevin Allis pose at the group’s annual State of Indian Nations address in Washington in Februaary. Sharp moderated a town hall Tuesday on the federal response to COVID-19 in Indian Country.

Native American tribes have been severely hit by the coronavirus but have received only a fraction of the help they need from the federal government, said lawmakers, who called the impact on businesses and health on reservations “particularly worrisome.” Read more»

The first payments to taxpayers under the federal government’s massive coronavirus relief bill should start showing up in Arizonans’ bank accounts this week, in the form of larget unemployment checks and a direct payment of up to $1,200 per person.

Thousands of dollars started arriving in Arizonans’ bank accounts this week as the first payments from the massive coronavirus relief package began to be distributed in the form of expanded unemployment benefits and direct stimulus payments. Read more»

Federal Reserve Building, Washington, D.C.

The Federal Reserve announced Monday it would take supportive measures, including expanding bond-purchasing programs, to boost credit access for American families and businesses. Read more»

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