Nov 30, 2017

New analysis suggests a majority of households would get a tax cut

J. Scott Applewhite / AP

A Joint Committee on Taxation analysis shows that the Senate GOP tax plan would give 60% of households a tax cut of $100 or more, which would decrease over time to about 16%, The Hill reports. 49% of households would see tax changes of less than $100 or a tax increase, the report from the nonpartisan Congressional committee says.

Why it matters: It's difficult to peg down what impact the tax bill may have on tax cuts or increases for Americans since Republicans are still negotiating parts of the plan, including what mechanism would act as a trigger if economic growth isn't robust enough to account for tax cuts, state and local tax deductions, and how it handles small businesses' taxes.

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HBCUs are missing from the discussion on venture capital's diversity

Illustration: Eniola Odetunde/Axios

Venture capital is beginning a belated conversation about its dearth of black investors and support of black founders, but hasn't yet turned its attention to the trivial participation of historically black colleges and universities (HBCUs) as limited partners in funds.

Why it matters: This increases educational and economic inequality, as the vast majority of VC profits go to limited partners.

Unemployment rate falls to 13.3% in May

Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. unemployment rate fell to 13.3% in May, with 2.5 million jobs gained, the government said on Friday.

Why it matters: The far better-than-expected numbers show a surprising improvement in the job market, which has been devastated by the coronavirus pandemic.

The difficulty of calculating the real unemployment rate

Data: U.S. Department of Labor; Note: Initial traditional state claims from the weeks of May 23 and 30, continuing traditional claims from May 23. Initial PUA claims from May 16, 23, and 30, continuing PUA and other programs from May 16; Chart: Andrew Witherspoon/Axios

The shocking May jobs report — with a decline in the unemployment rate to 13.3% and more than 2 million jobs added — destroyed expectations of a much worse economic picture.

Why it matters: Traditional economic reports have failed to keep up with the devastation of the coronavirus pandemic and have made it nearly impossible for researchers to determine the state of the U.S. labor market or the economy.