Stimulus checks news summary | 1 March 2023
Headlines: Wednesday, 01 March 2023
- Eli Lilly to cut price of brand insulin by 70% and generic to $25 per vial
- Consumer confidence slumps in February
- US Supreme Court heard oral arguements on legality of Student Loan Forgiveness plan
- Janet Yellen in interview on the economy and inflation battle says: "So far, so good”
- US GDP grew 2.7% in the fourth quarter of 2022
- Personal income in the US rose 0.6% in January
- Differences between a stimulus checkand a disaster relief check
- Federal government pushes to enroll seniors in SNAP benefits
- Austin, Texas leads US capitals in terms of falling home prices: where else are prices falling?
2023 Tax Season
- The way to access IRS transcripts to ensure a faster tax refund
- Did you receive a state stimulus check? No need to report the payment as income to the IRS.
Read more from AS USA:
Eli Lilly to cap insulin prices at $35 per month in US
The price of insulin has been skyrocketing over the past 20 years despite the fact that it is relatively inexpensive to make. According to the American Diabetes Association the price almost tripled between 2002 and 2013. The retail price has continued to rise since, 54 percent between 2014 and 2019.
This has forced around 16.5 percent of people who rely on the lifes-sustaining medicine to ration how much they use.
Eli Lilly announced that it would drop the price for two of its branded insulin, Humulin and Humalog, Lilly’s most commonly prescribed form, by 70 percent. The current list price of a Humalog U-100 10 mL vial is $274.70. The price decreases will be effective starting in the fourth quarter of 2023.
What is the future of cashier jobs?
Cashier jobs are part of a sector that is most at risk from automation. The Bureau of Labor Statistics predicts a 10% decline in the number of jobs by 2031.
An example of this is Apple stores. If you have been in one recently you will have found there is no need to go to a dedicated cashier; staff can scan items on their phones to pay for items in any part of the shop. The global self-checkout system market was estimated at $3.1 billion in 2020, according to ResearchandMarkets.com. This number is on course to double in the next three years.
Cashiers have been a crucial part of the retail industry for many years. Before mass automation and AI it was absolutely necessary for all shops to have someone scanning items as they left the store. This is no longer the case.
According to data from the Bureau of Labor Statistics state the median average annual salary for a cashier in the United States is approximately $27,260, based on the median hourly wage and assuming a full-time schedule of 40 hours per week. This is far lower than the average wage across the US of $70,248.
Pharmaceutical manufacturers Eli Lilly announced today that they are going to cap the price of insulin at $35 per month in a major win for those with medical requirements.
“While the current healthcare system provides access to insulin for most people with diabetes, it still does not provide affordable insulin for everyone and that needs to change,” said Eli Lilly Chair and CEO David A Ricks.
“The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes.”
One of the most important decisions that filers have to make is their 'filing status', a detail that can have huge recurpussions for their tax situation.
Filers are sometimes unsure about the differences between ‘single’ and ‘head of household’ status, although the latter can offer significant tax benefits if you are able to claim it. Anyone not married can opt for the single filing status, but if you are financially supporting a dependent then you may be able to qualify as a head of household.
Mortgage rates continue to rise in the US
Applications for new mortgage agreements have fallen to a 28-year low today as interest rates continue to rise for homeowners. The housing market have undergone a tumultuous few years of boom and bust but a series of interest rate hikes by the Federal Reserve have made mortgages unattainably expensive for many prospective buyers.
Retirement preparations are important for all workers, no matter how much they earnt during their time in the workplace. But many of the pension plan options impose certain restrictions on how and when the money can be withdrawn.
It’s important to note that there are generally tax implications associated with withdrawing funds from a 401(k) plan in the event of a death. We take a look at the options...
Why is my IRS tax refund taking so long?
In recent years filers have had to contend with long delays from the tax agency, due to the disruption of the pandemic and underfunding of the IRS. This year, with workers back in the offices and billions in extra IRS funding, the process is going much more smoothly and the vast majority of filers are receiving their refunds within 21 days.
However that that does not mean that everyone is getting their payments swiftly; here's a few reasons why your refund payment may still be delayed...
Eli Lilly cutting insulin prices to "make a real difference for Americans with diabetes"
While the current healthcare system provides access to insulin for most people with diabetes, it still does not provide affordable insulin for everyone and that needs to change. The aggressive price cuts we're announcing today should make a real difference for Americans with diabetes. Because these price cuts will take time for the insurance and pharmacy system to implement, we are taking the additional step to immediately cap out-of-pocket costs for patients who use Lilly insulin and are not covered by the recent Medicare Part D cap.
Eli Lilly slashes the price of its insulins, caps out-of-pocket costs to $35 per month
Eli Lilly announced on Wednesday that it would drop the price for two of its most commonly prescribed forms of branded insulin, Humalog and Humulin, by 70%. Those price decreases will be effective starting in the fourth quarter of 2023.
However, its non-branded insulin, Lispro, will see its price cut from over $82 to $25 a vial effective 1 May. That’ll make it the lowest list-priced mealtime insulin available.
Effective immediately, Lilly is capping out-of-pocket costs for customers to $35 at participating retail pharmacies for people with commercial insurance that use the pharmaceutical company’s insulin. Those that don't have insurance can use its Insulin Value Program to purchase Lilly insulins for no more than $35 month.
American drivers spending less at the pump than in 2022
The price of gasoline spiked last summer as uncertainty over crude oil supplies brought turmoil to world markets. Russia’s invasion of Ukraine and subsequent sanctions on the major oil producer helped push prices above $5 per gallon on average in June 2022.
A year after the start of the conflict though, crude oil prices have stabilized and the cost of gasoline is 6% lower than a year ago, albeit 2% higher than in January. While good news for commuters, over 75% of whom drive a car to and from work, it could present a hurdle for the Biden administration’s push to get Americans to make the switch to electric vehicles.
Jim Young / REUTERS
Biden administration to approve expanded sales of ethanol-blend gasoline
Reuters reports that the Biden administration is expected to recommend rule change to approve expanded sales of gasoline with a higher ethanol blend. The change would apply to Midwest states, including Iowa, Nebraska and Illinois, whose governors have been pushing for expanded sales of E15 blend. The new rule would only apply to certain states and isn’t expected to take effect until the summer of 2024.
EVELYN HOCKSTEIN / REUTERS
Biden plans to raise “some taxes” but without breaking campaign pledge
President Biden will release his budget proposals to Congress 9 March. On Tuesday he offered a glimpse of what he plans to include to fulfil his pledge to cut the deficit by $2 trillion over 10 years.
"I want to make it clear. I'm gonna raise some taxes," Biden said at an event in Virginia. "I'm going to lay down in detail every single thing, every tax that's out there that I'm proposing, and no one ... making less than $400,000 is going to pay a penny more in taxes."
Biden pledged during his 2020 campaign for the White House that he would not to increase taxes on people making less than $400,000 a year.
Earlier this month, the Internal Revanue Service (IRS) warned taxpayers who had received a stimulus check from their state to postpone filing their tax return until the agency determined if these payments counted as taxable income.
The guidance is now available, and for taxpayers in California, the news is good. Because the Middle-Class Tax Refund is classified as a “payment [...] made for the promotion of the general welfare or as a disaster relief payment,” the checks will not be taxed at the federal level.
The tax authority cited the pandemic emergency declaration that the White House as a justification for these payments to be treated as a relief program. Since the White House plans to end the pandemic emergency declaration in May, in the future, these types of payments may be subject to federal taxes. State governments should be aware that when the pandemic state of emergency is lifted, any payments made to their residents are likely to be taxed, and recipients should be informed of that fact to ensure they are not caught by surprise when filing the federal return.
CHIPS Act funding "not a free handout”, companies must share profits
The Commerce Department will begin accepting applications for semiconductor manufacturing subsidies as part of the CHIPS Act in June. Companies will have access to $39 billion in funds to bring production of semiconductors back to the US. Additionally, the law creates a 25% investment tax credit to build chip manufacturing plants.
However, the government incentives are "not a free handout for multi-billion-dollar tech companies.” The Biden administration said on Tuesday that companies winning investment funds will be required to share excess profits. Those recipients that receive over $150 million in direct funding will be required to share a portion of profits with the US government that surpass a preset threshold but will not exceed 75% of initial funding awarded.
As well, recipients of funding from the $52 billion semiconductor manufacturing and research program must explain how they will provide affordable childcare.
The 2023 Child Tax Credit is available to parents with dependents under 17 as of 31 December 2022 and who meet certain eligibility requirements. In 2021, the American Rescue Plan made big changes to the credit for one year that helped many families by allowing them to receive half of the value of the credit over six months rather than as a bulk sum when they file their taxes.
We take a look at the Child Tax Credit for this year, and who is eligible to receive the support...
What did Justices Roberts and Kavanaugh say about Student Loan Forgiveness?
If you’re talking about this in the abstract, I think most casual observers would say if you’re going to give up that much ... money, if you’re going to affect the obligations of that many Americans on a subject that’s of great controversy, they would think that’s something for Congress to act on.
Some of the biggest mistakes in the court’s history were deferring to assertions of executive emergency power. Some of the finest moments in the court’s history were pushing back against presidential assertions of emergency power.
When will the Supreme Court decide on Student Loan Forgiveness?
The Court has heard arguments on two separate lawsuits brought against Biden’s debt relief plan, but that does not necessarily mean borrowers will need to wait for two decisions. The Supreme Court could issue a ruling on both in a single decision, particularly considering the similarities between the two cases.
However even if they choose to issue a single ruling, it will take around three months for the process of draft opinions to be authored, distributed and amended within the Court. Typically, the Supreme Court delivers rulings on the biggest cases in late June.
The Supreme Court has begun hearing arguments on the legality of President Biden’s Student Loan Forgiveness plan, his flagship program to eliminate hundreds of billions of dollars in student debt.
Tuesday was the first day of oral arguments and it looks like the Court’s conservative majority are likely to side with the blocks imposed by GOP-appointed judges on lower courts.
Credit card debt rose as inflation soared
Inflation has been the biggest economic factor facing Americans for much of the past year and new figures suggest that the consequences of the price rises could be long-term financial issues. Credit card debt has soared to record levels in the past few months, suggesting that outpriced consumers have been forced to lumber themselves with unsustainable amount of credit card debt.
Federal and state authority have attempted to soften the blow with a series of relief payments, but that may not have been enough.
When will the Fed lower interest rates?
The Federal Reserve is eager to ensure a 'soft landing' for the United States economy as it looks to address the high inflation recorded over the past year. Peter Kraus, Aperture Investors chairman and CEO, tells CNBC 'Squawk Box' that the Fed's interest rates will likely stay at this level or higher for 18 months as the central bank looks to bring down inflation.
Consumers across the country have been subject to the changing tides of the US economy in recent years, with a sudden pandemic-enforced downturn followed by a period of rampant growth. The economic recovery has been good for the jobs market but disastrous to consumers, who have had to contend with rapid inflation pushing up prices.
With that in mind, it was no surprise to see consumer confidence fall in February...
Watch out for tax refund scams
The majority of filers are expected to receive a tax refund this year and the IRS is working around the clock to get those payments out promptly. But while the tax agency is committed to getting refund money into your pocket, unscruplous scammers are eager to part your hard-earned refund from you.
The Federal Trade Commission warns filers to look our for tax messages claiming to offer a tax refund or rebate if you follow the link. Do not click, it's a scam.
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Tax filers will be eager to know if and when they will be receiving a tax refund. Filing a tax return as soon as possible is the best way to make sure your return is processed promptly; the IRS will be sifting through tens of millions of tax returns on a first-come-first-served basis.
Typically the IRS is able to distribute a tax refund within 21 days so long as the return is filed electronically. Those who file with paper may have to wait up to six months to receive their refund.
Read our full coverage for details on when you can expect your refund and how to track it.
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Universal basic income (UBI), sometimes known as guaranteed income, would provide a regular payment to citizens whether they were in work or not.
The idea behind it is that it would decrease poverty and allow people to have a level of money without any dictation from salary or benefits. Outside of raw economics it would give people the chance to work less and live more fulfilling lives in being able to choose jobs they want to do rather than what they have to do to survive.
Here are the US cities invovled in UBI programmes.
The battle over Medicare funding has both sides claiming the other wants to make cuts to the program. The latest against the Biden administration revolves around new Centers for Medicare and Medicaid Services (CMS) rule changes. Experts who have looked at the proposals find that to call them “cuts” is inaccurate, while fact checkers say it is false. Here’s a breakdown of what is being proposed.