Domestic Taxes

Data compiled by the American Payroll Association (APA) shows nearly 140 million tax returns will be hit with a tax hike if Congress fails to extend a slew of tax cuts set to expire in less than four months. 

Nearly three-quarters of likely voters polled (71 percent) believe they should have a say in reforming Social Security, according to a new survey by Rasmussen Reports. 

Reps. Raul Grijalva (D-Ariz.), John Conyers (D-Mich.) and Dan Maffei (D-N.Y.) on Thursday asked fellow Democratic members to support a letter to President Obama asking him to keep Social Security as it is. 

The American Medical Association (AMA) and 90 other medical organizations on Thursday sent a letter to the Treasury Department expressing their opposition to a change in tax policy that would allow trial lawyers to deduct certain litigation expenses. 

The Pew Economic Policy Group on Thursday outlined cost projections for different scenarios involving the extension of tax cuts enacted under former President George W. Bush.

The National Taxpayers Union wants to prevent the repeal of a tax credit used by domestic oil and gas producers.

With just two months before the midterm election, 59 percent of likely voters believe that congressional Democrats want to increase taxes, according to a new poll by Rasmussen Reports. Only 17 percent believe the opposite is true.

Good news is scarce in the housing sector, but a rare bit was released Thursday — the number of contracts to buy previously owned homes increased in July.

The pending home sales index, a future indicator, rose 5.2 percent, the first increase in three months, a signal that the housing market might be turning a corner, the National Association of Realtors said Thursday. 

"Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," Lawrence Yun, NAR's chief economist, said in a statement. "But the recovery looks to be a long process."

Congress is likely to finish work this year on setting a permanent estate tax, Sen. Chuck Grassley (R-Iowa) suggested Thursday.

Grassley, the ranking member of the Senate Finance Committee, suggested that Congress is likely to settle on an estate tax rate this year, and exempt up to $3.5 million of estates from taxation.

"If we go back to a million-dollar estate tax exemption, which is going to happen Jan. 1, we're going to be selling a lot of farm land to pay estate taxes," Grassley told AgWired. "And even at  $3.5 million dollars, which I think is where we're going to end up, it's still going to be detrimental to some family farmers. But I think that's where we will end up, and I think we'll do it before the end of the year."

New claims for unemployment benefits dropped last week but with the monthly report looming on Friday it's hard to get excited about Thursday's drop. 

Claims dropped 6,000 down to 472,000 from last week's revised 478,000, the Labor Department reported Thursday. 

The four-week moving average, which smoothes out the volatility of the weekly number and provides a better gauge of the employment situation, also dropped by 2,500 to 485,500, down from last week's revised level of 488,000, which was the highest level since Nov. 28, 2009.

Although claims are well below their high of 651,000 in March 2009, they still aren't low enough to signal strong improvement in the job market. Claims were gradually declining but have been increasing in recent months.