Congress debates budget reform, taxes can't make up U.S. deficit according to the Tax Foundation, New Orleans' prosecutor drops charges against Louisiana AG, and Nashville places moratorium on data centers. The House Oversight and Government Reform Committee examined proposals to prevent government shutdowns, including a bipartisan Lankford-Hassan bill that would require Congress to stay in session seven days a week focused solely on appropriations until funding is resolved. Tax Foundation Chief Economist William McBride said the U.S. is spending more than $1 trillion annually on debt interest with debt-to-GDP near 100% and projected to reach 175% by 2056, driven primarily by Social Security and Medicare growth that outpaces the economy. McBride said no realistic combination of tax increases — including wealth taxes, higher income tax rates, payroll tax cap removal, or a value-added tax — could close the gap without addressing entitlement spending directly, likely through a bipartisan fiscal commission. Also, in this episode: Charges against Louisiana Attorney General Liz Murrill, stemming from a dispute over a New Orleans court clerk consolidation law and a sixteen-count indictment alleging public intimidation and malfeasance, were dropped by a special prosecutor. Murrill and Governor Jeff Landry are calling for a federal investigation into the officials who pursued the indictment, and Murrill said she'll seek taxpayer reimbursement for roughly $250,000 in legal fees. The Nashville Metropolitan Council approved a moratorium on new data center development until December 1 and adopted new distance rules from schools, churches, and the zoo, following opposition to a proposed data center near the Nashville Zoo and Fisk University. Mayor Freddie O'Connell is considering using eminent domain to acquire land near the zoo to block the project, a move opposed by developer DC Blocks, while both Republican and Democratic officials in Tennessee have voiced support for restricting the specific site. Headline inflation fell 0.4% from May to June, the biggest monthly drop since April 2020, driven mainly by falling gas prices, while core inflation came in at 2.6% with shelter costs up just 0.1%, the smallest monthly increase in four years. Economist Orphe Divounguy warned the relief is likely temporary as rising Middle East conflict could push gas prices back up, asking rents are firming due to a pullback in apartment construction, and continued federal deficit spending adds further upward pressure on prices, making a return to the Fed's 2% inflation target unlikely soon. Following reports that a former state representative faced sexual harassment complaints not immediately acted on by House Speaker Chris Welch's office, Governor J.B. Pritzker said Welch needs to be fully transparent about what happened and called for further disclosure. A group of New York landlords sued the city's rent guidelines board, alleging Mayor Zohran Mamdani packed the nine-member board with loyalists ahead of its vote to freeze rents for one- and two-year leases on more than a million rent-stabilized apartments, effective October 1. A state audit found $97.3 million in overstated and understated errors and inadequate internal financial controls at the Department of Public Safety for fiscal year 2025. Tennessee will hold a sales tax-free period from July 31 through August 2 for school supplies, clothing under $100, and computers under $1,500. Plus, America's Talking: Illinois - https://www.thecentersquare.com/illinois/article_8cfeb504-bcec-49ca-ae93-afd9b09976ce.html New York - https://www.thecentersquare.com/new_york/article_f5bd16e6-2b19-407c-875c-3cd1dda766a7.html North Carolina - https://www.thecentersquare.com/north_carolina/article_bd90c8e7-ba1d-4108-a844-c6c68176ae99.html Education - https://www.thecentersquare.com/tennessee/article_945b183e-c797-4fee-8e17-d79cb60adb6e.html The States delivers taxpayer-focused reporting from around America, powered by The Center Square. ____________ 👉 Read more: https://www.thecentersquare.com 📩 Sign up for the newsletter for daily update Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
