An updated economic forecast, momentum on a global minimum corporate tax rate, the end of the Restaurant Revitalization Fund, and the potential for another emergency extension in Connecticut are among the top business news items this morning.
National
The Congressional Budget Office has updated its economic forecast following the passage of the $1.9 trillion American Rescue Plan in March, anticipating that the GDP will grow 7.4 percent in the fourth quarter of the year compared to the same period in 2020. Inflation is forecast to grow by 2.8 percent in the fourth quarter, but slow to 2 percent in 2022.
In a deal fostered by the Organization for Economic Cooperation and Development, 130 nations have signed on to an international commitment to establish a 15 percent global minimum corporate tax rate. The effort aims to keep multinational corporations from creating offshore tax shelters, and is anticipated to generate $150 billion in additional tax revenues each year.
The $28.6 billion Restaurant Revitalization Fund has officially closed after issuing grants to less than one-third of the businesses that applied. Industry groups have called for $60 billion in additional funding to be allocated to the program to provide enough money to meet demand.
Connecticut
The Connecticut General Assembly will meet the week of July 12 to decide whether to expand Governor Ned Lamont’s emergency powers. Legislation passed during the regular session limited such extensions to 180 days when the legislature is not in session.
