Obama Era Estate-Tax Rules To Be Withdrawn
October 04, 2017
Treasury to withdraw estate-tax rules proposed by the Obama administration; Service sector index registers highest reading in over 12 years; U.S. private sector adds 135,000 jobs in September, according to ADP.
- Treasury to withdraw estate-tax rules proposed by the Obama administration. The Treasury Department announced on Wednesday its plan to withdraw estate-tax rules proposed by former President Obama and his administration that were widely opposed by GOP lawmakers and business groups. President Trump ordered a report from the Treasury Department in April to examine tax regulations issued on or after Jan. 1, 2016. In July, Treasury identified eight rules that it found to have an unnecessary burden on taxpayers or that added excessive complexity to tax laws. The Obama administration proposed rules in August 2016 limiting discounts on the value of minority shares of family-owned businesses for estate-tax purposes, intended to prevent wealthy people from avoiding taxes. However, Republicans and business groups said that the rules would make it more difficult for people to hand down their companies to their children. The Treasury Department agreed that the rules would make it harder to pass on businesses, noting that the rules’ compliance burdens would have been excessive and the rules difficult to apply. [The Hill]
Economic Indicators & News
- Service sector index registers highest reading in over 12 years. The Institute for Supply Management’s index measuring non-manufacturing activity registered 59.8 in September, surpassing estimates of 55.5 from economists polled by Reuters. This was the highest reading for the service sector index since August 2005, when the index hit 61.3, according to ISM. A reading above 50 indicates expansion in the service sector, while a reading below 50 indicates contraction. Anthony Nieves, chair of the ISM survey committee, noted that the non-manufacturing sector has reflected strong growth in September despite the impact on the supply chain from recent hurricanes. 14 of the 17 non-manufacturing industries surveyed reported growth in September. [CNBC]
- U.S. private sector adds 135,000 jobs in September, according to ADP. U.S. private employers added 135,000 jobs in September, exceeding economists’ expectations even despite the impact of Hurricane Harvey and Irma on smaller retailers, according to a report by the payrolls processor ADP on Wednesday. The September reading was the smallest increase since October 2016. Private payroll gains in August were revised down to 228,000 from an originally reported 237,000 increase. The Department of Labor will be releasing data on public and private sector non-farm payrolls on Friday. ADP said that small businesses were the most impacted by the storms, losing 7,000 jobs, while midsize companies added 63,000 jobs and large firms added 79,000 jobs. [Reuters, USA Today]