The U.S. budget deficit soared in fiscal year 2023, which will likely complicate Congress’ efforts to come to a federal spending deal before government funding runs out next month.

The deficit was $1.7 trillion for the most recent fiscal year, which ended September 30, according to Treasury Department data released Friday. That marks a $320 billion, or 23%, increase from the prior fiscal year.

“We are a nation addicted to debt,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. “With the economy growing and unemployment near record lows, this was the time to instill fiscal responsibility and reduce our deficits.”

The nation’s hefty debt load will become even costlier in coming years as interest payments rise.

“We are seeing in real time the painful combination of rising debt, inflation and interest costs, all leading to even more debt,” said Michael Peterson, CEO of the Peter G. Peterson Foundation, a nonpartisan organization that seeks to raise awareness of the US’ long-term fiscal challenges. “Interest costs rose almost 40% last year, and soon we’ll spend more on interest than we do on national defense.”

 As part of a larger effort to protect small businesses and organizations from scams, the Internal Revenue Service today announced the details of a special withdrawal process to help those who filed an Employee Retention Credit (ERC) claim and are concerned about its accuracy.

The IRS created the withdrawal option to help small business owners and others who were pressured or misled by ERC marketers or promoters into filing ineligible claims. Claims that are withdrawn will be treated as if they were never filed. The IRS will not impose penalties or interest.

Employers can use the ERC claim withdrawal process if all of the following apply:

• They made the claim on an adjusted employment return (Forms 941-X, 943-X, 944-X, CT-1X).
• They filed the adjusted return only to claim the ERC, and they made no other adjustments.
• They want to withdraw the entire amount of their ERC claim.
• The IRS has not paid their claim, or the IRS has paid the claim, but they haven’t cashed or deposited the refund check.

To take advantage of the claim withdrawal procedure, taxpayers should carefully follow the special instructions at IRS.gov/withdrawmyerc, summarized below.

• Taxpayers whose professional payroll company filed their ERC claim should consult with the payroll company. The payroll company may need to submit the withdrawal request for the taxpayer, depending on whether the taxpayer’s ERC claim was filed individually or batched with others.
• Taxpayers who filed their ERC claims themselves, haven’t received, cashed or deposited a refund check and have not been notified their claim is under audit should fax withdrawal requests to the IRS using computer or mobile device. The IRS has set up a special fax line to receive withdrawal requests. This enables the agency to stop processing before the refund is approved. Taxpayers who are unable to fax their withdrawal using a computer or mobile device can mail their request, but this will take longer for the IRS to receive.
• Employers who have been notified they are under audit can send the withdrawal request to the assigned examiner or respond to the audit notice if no examiner has been assigned.

Those who received a refund check, but haven’t cashed or deposited it, can still withdraw their claim. They should mail the voided check with their withdrawal request using the instructions at IRS.gov/withdrawmyerc.

The average annual premium for employer-sponsored family health insurance coverage rose by 7 percent in 2023, according to a study published Wednesday.

The results were derived from health research organization KFF’s annual Employer Health Benefits Survey. The organization surveyed private firms and nonfederal government employers with three or more employees, receiving 2,133 completed responses from the 24,891 firms that they sampled.

The survey found the average annual premium for employer-sponsored family health insurance went from $22,463 in 2022 to $23,968 in 2023. For family coverage, covered employees contributed an average of 29 percent of the total cost, compared to single coverage employees who contributed an average of 17 percent.

This year, workers contributed an average of $6,575 toward the cost of the health insurance coverage. The average premium for both single and family coverage has grown by 22 percent since 2018.

Almost a quarter of employers also said in they survey that they will increase workers’ contributions in the next two years. Average worker contributions have generally followed an upward trend in the 25 years that KFF has conducted the survey.

KFF noted that the cost of an average family premium was similar for workers in both small and large firms, while workers in small firms paid about 5 percent more for a single premium than those in larger firms. However, the survey found that about 30 percent of covered workers at small firms were enrolled in plans in which their employer paid the entire premium for single coverage.

Yesterday, the National Retail Federation urged the Federal Reserve to approve lowering its 21-cent cap on debit card “swipe” fees when the Board of Governors meets next week to consider proposed regulations on the issue.

The Federal Reserve announced today that the Board will meet next Wednesday to consider “proposed revisions to the Board’s debit interchange fee cap.” Details of the proposal were not released.

The amount large banks and card networks charge retailers to process debit card transactions has been capped at 21 cents – plus 1 cent for fraud prevention and 0.05% of the transaction amount to cover fraud costs – since 2011. The cap applies only to cards issued by banks with at least $10 billion in assets.

Under the 2010 Durbin Amendment, Congress directed the Federal Reserve to adopt regulations requiring that debit card swipe fees be “reasonable” and “proportional” to banks’ costs. The Federal Reserve found the average cost was about 8 cents per transaction and proposed a cap of up to 12 cents but settled on 21 cents after lobbying by banks.

The Federal Reserve was required to review the cap every two years but has kept it the same even though banks’ average cost has steadily fallen, dropping to 3.9 cents as of 2019, the most recent year for which the Federal Reserve has released data.

The cap cut the typical debit swipe fee in half and has saved retailers an estimated $9 billion a year, with studies showing retailers have shared at least 70% of the savings with customers. But NRF has long argued that the savings could have been much larger if the cap had been set lower or periodically adjusted as intended by Congress.

NRF sued the Fed in U.S. District Court in 2011, saying the cap was set too high. A trial judge agreed but the ruling was overturned by the U.S. Circuit Court of Appeals for the District of Columbia, and the Supreme Court refused to hear NRF’s appeal. The Supreme Court agreed late last month to take up a 202 challenge to the cap brought by a North Dakota retailer and decide whether the statue of limitations has expired.

Debit and credit card swipe fees have doubled over the past decade and totaled $160.7 billion in 2022, according to the Nilson Report. The fees are among most merchants’ highest operating costs and drive up prices paid by consumers by more than $1,000 a year for the average family. Debit card swipe fees account for $34.4 billion of the total.

Retail sales rose 0.7% on the month, according to the advance report the Commerce Department released Tuesday.

The numbers are not adjusted for inflation, so they indicate that consumers more than kept up with price increases. The consumer price index, released last week, showed headline inflation up 0.4% in September. On a year-over-basis, sales rose 3.8%, compared to the 3.7% increase for CPI.

Sales gains were broad-based on the month, with the biggest increase coming at miscellaneous store retailers, which saw an increase of 3%. Online sales rose 1.1% while motor vehicle parts and dealers saw a 1% increase and food services and drinking places grew by 0.9%, good for a yearly increase of 9.2%, which led all categories.

There were only a few categories that showed a decline; electronics and appliances stores as well as clothing retailers both saw decreases of 0.8% on the month.

Republicans who control the Wisconsin state Senate proposed sweeping changes Friday to Democratic Governor Tony Evers’ plans to address worker shortages in the state.

Governor Evers called a special legislative session that began in September in hopes of getting a $1 billion plan through the Senate and Assembly. The proposal would keep a pandemic-era child care subsidy program running, send more money to the University of Wisconsin and create a paid family leave program.

Senate Majority Leader Devin LeMahieu’s office on Friday released a third plan that would cut income taxes for those making between $15,000 and $225,000 from 5.3% to 4.4%; create a state tax credit for families paying for child care; increase income tax deductions for private school tuition; make professional credentials granted to workers in other states valid in Wisconsin; and prohibit state examining boards from requiring counselors, therapists and pharmacists pass tests on state law and regulations.

The Senate plan also would enter Wisconsin into multistate agreements that allow physician assistants, social workers and counselors to work in all those states. The Wisconsin Economic Development Corporation could request money from the Legislature’s budget committee to help child care providers become certified.

The proposal also includes requirements that anyone who claims unemployment benefits to meet directly with potential employers, post a resume on the state Department of Workforce Development’s website and complete a re-employment counseling session if they have less than three weeks of benefits remaining.

A deal to fund renovations at American Family Field and ensure the Milwaukee Brewers stay in the city until 2050 cleared a state Assembly committee Thursday, setting up vote by the full Assembly early next week. It now has support from Democratic Governor Tony Evers, as well as from Milwaukee’s mayor and county executive.

State Representative Christine Sinicki, D-Milwaukee, was worried that local taxpayers would be paying too much for the renovations, after the original proposal called for $5 million from the county and $2.5 million from the city in annual payments for the next 27 years.  But the county would be required to pay $2.5 million under the latest version of the bill, or half of what was originally required. And the city would be allowed to pay for its share of the annual payments by redirecting a state administrative fee on a new local sales tax passed earlier this year.

The deal now includes $546 million in public dollars for the Southeast Wisconsin Professional Baseball Park District. That district is charged with the oversight and monitoring of the operations and maintenance of American Family Field, including the trademark retractable roof and the stadium’s video board.

The Brewers would contribute around $100 million, while the majority of state funds would come from income taxes, including from Brewers players and employees, as well as from visiting players. Part of the plan includes winterizing the stadium, so it can be used for events in colder months.

The 1995 Brewers deal to construct Miller Park authorized government bonding, or borrowing, to pay for construction of the stadium. Borrowing for the project totaled more than $259 million, according to a 2019 memo from the nonpartisan Legislative Fiscal Bureau. Taxpayers in Milwaukee, Ozaukee, Washington, Waukesha and Racine counties paid an extra 0.1 percent sales tax to retire that debt and the associated interest. Governor Evers signed a law in 2019 requiring the local sales tax to expire in 2020.

The full Assembly is scheduled to vote on the latest Brewers deal Tuesday.

The U.S. Energy Information Administration (EIA) expects U.S. households that heat with natural gas or are in the West will spend less on heating costs this winter than last winter. In its 2023 Winter Fuels Outlook, EIA forecasts residential natural gas prices this winter will be about 21% lower than last winter. Natural gas is the most common source of heat for U.S. households.

“Natural gas prices this year have been consistently lower than in 2022. Even if this winter is colder than forecast, we still expect households heated by natural gas to pay less for heat this winter,” said EIA Administrator Joe DeCarolis.

Costs for households heating with propane and electricity are likely to remain relatively flat. For homes that use heating oil, EIA expects that heating expenses will be somewhat higher this winter. Warmer-than- or colder-than-expected temperatures could affect heating oil costs

The United States typically consumes more heating fuels than it produces during the winter, so inventories become an important factor in commodity prices. Heading into this winter heating season, inventories for most heating fuels in most of the country are above the five-year average, following a relatively mild end to the 2022–2023 winter. EIA expects U.S. natural gas inventories will end October 6% above the five-year average, and propane stocks are currently 17% above the five-year average.

The Labor Department said Wednesday that its Producer Price Index, which measures inflation at the wholesale level before it reaches consumers, climbed 0.5% in September from the previous month. On an annual basis, prices are up 2.2%, the largest increase since April.

In another sign that suggests high inflation has been slow to dissipate, core prices – which exclude the more volatile measurements of food and energy – rose 0.3% for the month. That is higher than both the 0.2% estimate and the reading recorded last month.

The figure was up 2.2% on a 12-month basis.

The data comes one day before the Labor Department releases its more closely watched consumer price index, which measures the prices paid directly by consumers. The gauge is expected to show that inflation cooled ever so slightly last month as high prices continue to squeeze consumers.

Both releases are considered to be important measurements of inflation, with the PPI believed to be a leading indicator of inflationary pressures as costs work their way down to consumers. The different gauges point to inflation that is still running above the Federal Reserve’s preferred 2% target.

The Wisconsin Supreme Court voted Monday to reduce from 20 years to two years the time when most eviction records must be kept on the state court website, commonly referred to by the acronym CCAP.

Legal Action of Wisconsin sought the change for cases where there is no money judgment against a tenant. At a hearing last month, tenant advocates said the change would help renters with eviction histories, since many landlords rely solely on the statewide court website for determining whether to rent to someone.

Numerous landlord groups, including the Wisconsin Realtors Association, opposed the proposal. They argued that changing the rule could result in landlords charging higher rental deposits to protect themselves, a change that will negatively affect all renters.

Last year in Wisconsin, there were 25,819 filings for eviction with 1,621 resulting in judgment of evictions being granted, according to the Wisconsin Department of Administration.