The Inflation Reduction Act, signed into law on August 16, 2022, includes health-care and energy-related provisions, a new corporate alternative minimum tax, and an excise tax on certain corporate stock buybacks. Additional funding is also provided to the IRS. Some significant provisions in the Act are discussed below. Medicare The legislation authorizes the Department of Health and Human Services to negotiate Medicare prices for certain high-priced, single-source drugs. However, only 10 … [Read more...]

In an early July poll, 58% of Americans said they thought the U.S. economy was in a recession, up from 53% in June and 48% in May.1 Yet many economic indicators, notably employment,  remain strong. The current situation is unusual, and there is little consensus among economists as to whether a recession has begun or may be coming soon.2 Considering the high level of public concern, it may be helpful to look at how a recession is officially determined and some current indicators that suggest … [Read more...]

With approximately 94% of American workers covered by Social Security and 65 million people currently receiving benefits, keeping Social Security healthy is a major concern.1 Social Security isn't in danger of going broke — it's financed primarily through payroll taxes —  but its financial health is declining, and benefits may eventually be reduced unless Congress acts. Each year, the Trustees of the Social Security Trust Funds release a detailed report to Congress that assesses the financial … [Read more...]

Nearly three quarters of workers and 77% of retirees in a recent survey said they remain at least somewhat confident that they will experience a comfortable retirement, according to the Employee Benefit Research Institute. Nevertheless, a third of workers and a quarter of retirees felt less confident this year due to the economic effects of the COVID-19 pandemic, with many respondents citing inflation as the reason. Not surprisingly, those feeling less confident were also more likely to … [Read more...]

In March 2022, the Consumer Price Index for All Urban Consumers (CPI-U), the most common measure of inflation, rose at an annual rate of 8.5%, the highest level since December 1981.1 It's not surprising that a Gallup poll at the end of March found that one out of six Americans considers inflation to be the most important problem facing the United States.2 When inflation began rising in the spring of 2021, many economists, including policymakers at the Federal Reserve, believed the increase … [Read more...]

Before Russia stunned the world by invading Ukraine, it was widely believed that the economic ties formed through globalization would help promote peace. But the war is testing that assumption and drawing attention to the vulnerabilities in far-flung supply chains, which were already under pressure because of the pandemic and recovery. In response to the brutal invasion of Ukraine, the United States, European Union (EU), United Kingdom (UK), and their allies are using financial sanctions to … [Read more...]

On March 16, 2022, the Federal Open Market Committee (FOMC) of the Federal Reserve raised the benchmark federal funds rate by 0.25% to a target range of 0.25% to 0.50%. This is the beginning of a series of increases that the FOMC expects to carry out over the next two years to combat high inflation.1 Along with announcing the current increase, the FOMC released economic projections that suggest the equivalent of six additional 0.25% increases in 2022, followed by three or four more increases … [Read more...]

According to the Internal Revenue Service (IRS), tax scams tend to increase during tax season and/or times of crisis.1  Now that tax season is in full swing, the IRS is reminding taxpayers to use caution and avoid becoming the victim of a fraudulent tax scheme.  Here are some of the most common tax scams to watch out for. Phishing and text message scams Phishing and text message scams usually involve unsolicited emails or text messages that seem to come from legitimate IRS sites to … [Read more...]

Many IRA and retirement plan limits are indexed for inflation each year. Although the amount you can contribute to IRAs remains the same in 2022, other key numbers will increase, including how much you can contribute to a work-based retirement plan and the phaseout thresholds for IRA deductibility and Roth contributions. How Much Can You Save in an IRA? The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2022 remains $6,000 (or 100% of your earned income, if less). … [Read more...]