Personal finance news summary | 10 March 2022
US finance and benefits: latest news
Headlines
- Inflation rose to 7.9% in February, hitting 40-year high
- President Biden signs executive order to give the government greater power to oversee and control the purchase, transfer, and taxation of cryptocurrencies and other digital assets.
- Gas prices across the US up around 19 percent since this time last month
- 4.3 million people across the US quit their job in January, reports Bureau of Labor Statistics
- President Biden says the county has added 423,000 manufacturing jobs since he took office.
- Congress passed $1.5 trillion spending bill to fund the government of which $13.6 billion will be sent to Ukraine in the form of a humanitarian and military aid package.
Helpful links and Information
- All you need to know about the 2022-2023 FAFSA deadline
- How will the Russian invasion impact gas prices in the US
- Gas Prices in California: why are they higher than other states?
- Are property taxes deductible?
- How long does one have to wait for a tax return to be processed?
Social Security reform is needed to ensure the programme's future
Across the United States, the various Social Security programmes are the most widely used form of financial relief from the federal government. In 2021 an estimated 65 million Americans benefitted from the payments but there is concern that the existing funding system will soon be unable to cope with the shifting demographics of the US.
With more people living longer and a lower birth rate than in previous generations the population is becoming older, meaning there are more people receiving Social Security payments and fewer people paying into the system. However Rep. John Larson of Connecticut has proposed a piece of legislation known as the Social Security 2100 Act which aims to ensure that the support is funded for generations to come.
Watch out for Social Security scams
Lawmakers have shared information regarding a worrying trend of Social Security fraudsters trying to part American's with their money. Follow these steps to ensure that you don't become the victim of a scam and make sure to stay vigilant throughout tax season 2022.
Who is eligible for the Child Tax Credit?
Last year the American Rescue Plan brought about a huge expansion of the Child Tax Credit programme that was first introduced during the Clinton administration. The new system gave families a monthly direct payment for the first time but also widened eligibility requirements to allow more low-income households to receive the full amount. If you're eligible, you could have up to $1,800 per child in unclaimed Child Tax Credit support to claim in your tax filing this year.
Changes to tax rules over the past year could have consequences for your tax bill and a majority of Americans expect their refund to be lower than in 2021.
The US federal government has sent out three stimulus checks so far since the beginning of the coronavirus pandemic in early 2020.
Work Opportunity Tax Credit: know how
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.
WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.
Unemployment finding its level
Given what we've seen over the past two years, there was always going to be a period of readjustment to the new norm, and the latest data suggests this is still in progress.
Reinstating the enhanced Child Tax Credit
He calls himself a proud army veteran and a patriot, and Marcus Flowers is running for Congress in Georgia to replace the controversial Marjorie Taylor Greene.
As he says in his recent post, Flowers will fight to help those families who need it most.
Wall St falls at open as inflation data cements rate hike bets
Wall Street's main indexes opened lower on Thursday after data showed consumer prices in February surged as expected, cementing the case for an interest rate hike by the Federal Reserve later this month. The Dow Jones Industrial Average fell 179.48 points, or 0.54%, at the open to 33,106.77.
The S&P 500 opened lower by 25.33 points, or 0.59%, at 4,252.55, while the Nasdaq Composite dropped 157.20 points, or 1.19%, to 13,098.35 at the opening bell.
Avoiding a scammer
By recognizing the common signs of a scam it could help you avoid falling for one. But if it's already too late, know what to do next.
Breaking | Inflation up 7.9% in February
The news is slightly worse than expected, with inflation having grown 7.9% over the past 12 months.
In what's the fastest acceleration since back in 1982, the consumer price index month-on-month gain was 0.8%, and this came after experts had predicted headline inflation to increase 7.8% for the year and 0.7% for the month.
President Biden announced on Tuesday that he had signed an executive order banning the importation of Russian oil and natural gas due to the country’s continued invasion of Ukraine. Fossil fuels play a huge role in the Russian economy and Biden is eager to hit the Kremlin’s main revenue source hard.
"Today, I am announcing the United States is targeting the main artery of Russia's economy," Biden said in a speech on Tuesday. "We're banning all imports of Russian oil and gas energy. That means Russian oil will no longer be accepted in US ports, and the American people will deal another powerful blow to Putin's war machine."
However the increase scarcity of oil in the US will have an effect on products that are made using oil, meaning that the price of gasoline is likely to rise even higher as a result.
Consumer price index incoming
In an hour or so we'll be bringing you February's much anticipated consumer price index.
How will it look? How will the administration and others react? Not long to wait now...
Calls to remove state and federal taxes on gasoline increasae
Gas prices are up nearly fifty percent since this time last year. As the US implements a can on Russian oil and gas, many are worried prices could surge even further. This has led some to call on states and the federal government to remove gas taxes to decrease the price. How have leaders responded?
How does the unemployment vary by education level?
Yes. The Bureau of Labor Statistics has reported that in February the overall unemployment rate was 3.8 percent, while the rate for with a high school diploma but no college was 4.5 percent.
At 2.2 percent, those with a Bachelor's degree had the lowest unemployment rate.
Is the unemployment rate for those without a college degree higher than the rate of those with one?
Yes. The Bureau of Labor Statistics has reported that in February the overall unemployment rate was 3.8 percent, while the rate for with a high school diploma but no college was 4.5 percent.
At 2.2 percent, those with a Bachelor's degree had the lowest unemployment rate.
What is included in President Biden Executive order on digital assets?
1. Provides funding for the US Treasury and other institutions to conduct research and develop policy proposals as to ensure the government can control and oversee the flow of digital assets.
From the Face Sheet:"The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets."
2. Encourages Financial Stability Oversight Council to identify risks that these assets could pose to the US economy on a wide scale. Then asks that this institution, "develop appropriate policy recommendations to address any regulatory gaps."
3. Calls on relevant government agencies to identify how these assets could be used to conduct illicit financial activities and "directs" various agencies "to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks."
4. Directs the US Treasury to examine the possible need to establish a U.S. Central Bank Digital Currency (CBDC) "to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests."
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Biden tours job growth seen over the last year in the manufacturing sector
Our economy created 432,000 [423,000] new manufacturing jobs in America since we took office. And today, companies are choosing to build new factories here — here in the United States, when just a few years ago, they would have built them overseas
Good morning and welcome to AS USA's live blog covering financial news from Washington to Wall Street. Stick with us as we bring you the latest on tax season, stimulus negotiations on Capitol Hill, and Biden's Make it in America Plan.