House Republicans attempt to extend individual tax cuts

Policy Watch

• National Labor Relations Board to propose rule limiting joint employer regulations. The National Labor Relations Board proposed a rule Thursday reversing Obama-administration precedent on how employers were required to treat “arms-length” employees, such as those employed by contractors or franchisees. In 2015, the NLRB ruled that any company that had indirect control over employees, such as through scheduling software, could be considered a joint employer, making that company liable for infringing on certain rights, like firing workers for attempting to unionize. The new rule would reverse that policy, requiring employers to have “substantial” and “direct and immediate” control to be considered a joint employer, a much stricter standard. The rule is open to public comment for 60 days, and experts indicate it will likely be challenged in the courts. [NY Times]

• House Republicans attempt to extend individual tax cuts. House Republicans have advanced a proposal out of the Ways and Means Committee to extend the individual tax cuts, a key provision of the GOP’s Tax Cuts and Jobs Act, beyond their current expiration in 2025. The proposal would reduce federal revenue by an additional $631 billion, on top of the $1.5 trillion tax cut already passed. Democrats expressed concerns that the proposal was fiscally unsound, and, even if the House passed it, the bill would have an uncertain future in the more moderate Senate. The committee also advanced two bills that would expand 401(k) plans and increase startup tax breaks for new businesses. [WSJ]

  Economic Indicators and News

• US import prices fall on a strong dollar. US import prices posted the biggest decline in 1.5 years in August, as a strong dollar outweighed inflation pressure. Prices fell 0.6% in the month of August, the biggest drop since January 2016. In the 12 months through August, prices rose 3.7%; the drop counterbalanced a huge 3,7% price increase in July, largely caused by trade conflict. Core prices excluding volatile food and fuel fell just 0.2% in August, with a 12 month increase of 1.3%. [CNBC]

• Retail gains shrink. Retail spending increased by the smallest rate since February this year, edging up just 0.1% as consumers reduced motor vehicle and clothing spending. However, July data were revised upward 0.2% to a 0.7% increase. In the 12 months through August, retail sales have skyrocketed 6.6% on low unemployment, modest wage growth and rosy economic conditions. [CNBC]

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