South Recovers From Natural Disasters
November 29, 2017
Sens. Marc Rubio (Fla.) and Mike Lee (Utah) plan to offer Senate tax bill amendment to further expand child tax credit; The U.S. Economy Grows Faster than Expected in Third Quarter, as GDP Expands at 3.3 Percent Annual Rate; Pending home sales rebound 3.5% in October as South recovers from hurricane.
- Sens. Marc Rubio (Fla.) and Mike Lee (Utah) plan to offer Senate tax bill amendment to further expand child tax credit. Republican Sens. Marc Rubio (Fla.) and Mike Lee (Utah) said on Wednesday that they plan to offer an amendment to the Senate tax bill in order to further expand the child tax credit. They plan to do so by slightly raising the bill’s corporate tax rate. The amendment would allow the child tax credit to be refundable up to the payroll tax liability of 15.3 percent of earnings, allowing more low-income families to take advantage of it. The amendment would also fix a marriage penalty associated with the credit and index the credit to the same inflation index that other individual tax changes are tied to under the bill. The changes would be offset by raising the corporate tax rate in the bill from 20 percent to 22 percent. The current corporate tax rate is at 35 percent. [The Hill]
Economic Indicators & News
- The U.S. Economy Grows Faster than Expected in Third Quarter, as GDP Expands at 3.3 Percent Annual Rate. The U.S. gross domestic product (GDP) increased at a 3.3 percent annual rate in the third quarter, according to the Commerce Department in its second estimate released on Wednesday. The GDP was boosted by a rebound in government spending, and increases in business investment in inventories and equipment, growing at the fastest pace since the third quarter of 2014 and a pickup from the second quarter’s 3.1 percent GDP growth rate. [CNBC]
- Pending home sales rebound 3.5% in October as South recovers from hurricane. The pending home sales index, which measures signed contracts to buy existing homes, increased 3.5 percent for the month of October, yet is still 0.6 percent lower than compared to October 2016. That is the highest level since June, yet September’s reading was revised down. Home sales were strongest in the South, jumping 7.4 percent for the month and 2 percent compared with a year ago. This is likely due to pent-up demand after two major hurricanes hit the South at the end of the summer. Sales were higher in the Southeast by 0.5 percent monthly and up 2.8 percent in the Midwest. In the West, where prices are highest and inventory is slim, homes experienced a monthly decline of 0.7 percent. Sales of newly built homes have been surging in the past few months, with the latest reading for October showing new home sales up nearly 19 percent compared with a year ago, according to the U.S. Census. [CNBC]