Array
The Supreme Court just rejected an effort to block student debt relief. We’ll also look at how the IRS is changing tax brackets to adjust to inflation and a breakthrough housing discrimination lawsuit.
???? But first, see why everyone is talking about lettuce.
Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.Barrett denies bid to block debt forgiveness plan
Justice Amy Coney Barrett on Thursday denied an emergency bid by a group of Wisconsin taxpayers to block the Biden administration’s student loan forgiveness program.
Barrett, who handles emergency matters arising from Wisconsin, acted alone in denying the request, rather than refer the matter to the full court.
The brief, one-line order comes after the Brown County Taxpayers Association on Wednesday urged the court to rule that the president’s nationwide debt cancellation plan illegally encroaches on Congress’s exclusive spending power.
The move leaves intact a judge’s finding that the group lacked standing to sue, a ruling that is being appealed in a lower court.
The emergency bid came after a A U.S. District judge in Wisconsin dismissed the suit for lack of standing. But the challenge remains alive in an appeals court.
The Hill’s John Kruzel reports here.
TAX CHANGES
What to know about the IRS’s changes to next year’s taxes
The IRS announced on Tuesday inflation adjustments for more than 60 tax provisions for tax year 2023, including the standard tax deduction and the designation of tax brackets, both of which affect the vast majority of taxpayers.
These tax adjustments happen every year, but since inflation is at a nearly 40-year high of 8.2 percent, next year’s adjustments will be particularly noticeable.
Here are just a few things to know about the inflation adjustments for 2023 taxes:
The changes allow taxpayers to break even: Just like the Social Security cost-of-living adjustment (COLA), which will provide an extra $140 a month to recipients on average, the extra money resulting from the tax code adjustments really isn’t extra money.
