A global minimum tax agreement, elevated inflation expectations, teen work opportunities, offshore wind hurdles, Connecticut budget negotiations, and the final days of the Connecticut General Assembly’s 2021 session are among the top business news items this morning.
National
Treasury Secretary Janet Yellen and financial ministers in the Group of 7 have agreed to a minimum international tax rate of 15 percent in a bid to deter companies from offshoring to seek lower tax rates. The initiative comes as the Biden administration seeks to win Republican support for certain tax changes to support infrastructure spending.
Yellen has suggested that inflation could reach 3 percent this year, exceeding the Federal Reserve’s 2 percent annual target. The White House and Fed have repeatedly said they expect inflationary pressures to be temporary, with the Fed planning to hold off on raising interest rates until the labor market shows stronger recovery from the COVID-19 pandemic.
Business trends
Teenagers have been entering the labor market in greater numbers, providing some relief for employers struggling to fill available job openings. About one-third of 16- to 19-year-olds are employed, up from a low of 20 percent in April 2020, and young workers are finding benefits such as elevated pay and better schedule flexibility.
A recent New York Times feature examines the headwinds offshore wind development faces in the United States, which lags far behind Europe in these installations despite lengthy coastlines. Some hurdles include a shortage of vessels capable of supporting offshore construction efforts, opposition from the fishing industry, and a law prohibiting developers from launching foreign ships from American ports.
Connecticut
Governor Ned Lamont and leaders in the Connecticut General Assembly are moving closer to a deal on a two-year budget. Lamont is tabling a proposed $50 million tax on health insurers as well as the Transportation Climate Initiative, and the parties have also reportedly resolved disagreements over the statutory spending cap and municipal aid.
As the Connecticut General Assembly enters the final days of its 2021 session, lawmakers are looking to identify bills they might be able to pass before the legislature closes. A vote on legalizing recreational marijuana in the state could arrive today, but one establishing a “fair work week” might not come up for a final vote.
